The plant as increased its production:
As it can make more than before, this means also that the plant is more efficient.
Hope this helps
Answer:
a.
$207,000
b.
Year 1: $57,600
Year 2: $67,200
Year 3: $30,000
Explanation:
a.
Calculate the initial outlay of the project at year 0 as follow
Initial Outlay = Base Price + Modification cost + Working Capital requirement
Initial Outlay = $160,000 + $40,000 + $7,000
Initial Outlay = $207,000
b.
The working for the calculation of the cash flow is attached with this answer, please refer to the attached file.
Answer:
The correct answer is D. the inflation differential.
Explanation:
It is the difference in the inflation rates between two geographical spaces, for example between Spain and Sweden within the EU, or Extremadura and Asturias in Spain.
If inflation occurs in the same integrated economic space, in the long term it causes loss of competitiveness, since the prices of goods and services in one area are more expensive than in another.
Answer: $1120
Explanation:
I = PxRxT/100
= 1000 x 4 x 3 / 100
= $120
Yearly the bond gave a dividend of $40 which makes it $120 after 3years.
Present value of the bond
= $1000 + $120
= $1120
Answer:
The correct answer would be option A, $125800.
Explanation:
Cost of goods manufactured= Total costs + beginning work in process - Ending work in process
Total costs include Direct Materials, Direct labor and Factory Overheads. So the Above formula can be written as:
CGM = (Direct materials + Direct Labor + Factory overhead) + Beginning WIP - Ending WIP
Now
Direct Materials = Beginning raw materials + Purchased Raw Materials - Ending Raw materials
= 15200+60000-16600= 58600
Now Direct labor given is = 42800
And Factory Overheads = 30000
So,
Total costs= direct materials + Direct Labor + Factory Overhead
Total Costs= 58600 + 42800 + 30000
= 131400
Beginning work in process = 22400
Ending work in process = 28000
NOW Costs of Goods Manufactured/CGM = Total Cost + Beginning WIP -Ending WIP
= 131400+22400-28000
=$125800
