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Mrac [35]
3 years ago
14

You own a business which generates $200,000 in profit per year. Someone has offered to buy it from you. Based on a 5 year projec

tion and a belief that you could earn 9% annually if you had the money today, how much do you believe the business is worth today?
Business
1 answer:
cluponka [151]3 years ago
6 0

Answer:

The Present worth is $777930.25

Explanation:

FInd the NPV of the cashflows

NPV = 200000/(1+0.09)^1 + 200000/(1+0.09)^2 + 200000/(1+0.09)^3 + 200000/(1+0.09)^4 + 200000/(1+0.09)^5

= $777930.25

Therefore, The Present worth is $777930.25

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Dubberly Corporation's cost formula for its manufacturing overhead is $31,600 per month plus $52 per machine-hour. For the month
Ganezh [65]

Answer:

The activity variance for manufacturing overhead in March would be closest to $6240

Explanation:

As per given Data

Total overheads = $31,600 + (Machine hours x $52)

Bu using this equation we will calculate the activity variance

Planned machine hours = 8,100 hours

Placing value in the formula

Planned Manufacturing overheads = $31,600 + ( 8,100 hours x $52 )

Planned Manufacturing overheads = $452,800

Actual machine hours = 7,980 hours

Applied Manufacturing overheads = $31,600 + ( 7,980 x $52 )

Applied Manufacturing overheads = $446,560

Activity Variance for manufacturing overhead = Planned Manufacturing overheads  - Applied Manufacturing overheads

Activity Variance for manufacturing overhead = $452,800 - $446,560 = $6,240

5 0
3 years ago
The manager can invest in an additional project that would require $40,000 investment in additional assets and would generate $6
Makovka662 [10]

Answer:

d. If the manager invests in the additional project, residual income of the division will increase.

Explanation:

RI = Operating Income - (Operating Assets x Minimum Required Rate of Return)

with adding the additional project

Operating Income: $60000 +6000 =$66000

Operating Assets: $375000+$40000 =$415000

Residual income =$66000-14%*$415000 =$7900

Consider the attached information.

7 0
3 years ago
What is the most important type of decision that the financial manager makes?
WITCHER [35]

Answer:

The most important decision a financial manager can make is the allocation of funds to various investments

6 0
2 years ago
Read 2 more answers
The store hours can be different for each day of the week.<br> True<br> False
Anit [1.1K]
The answer is true because it need not coincide with the calendar of the week, but may begin on any day and at any hour of the day
6 0
3 years ago
Comprehensive income is defined as: Net income plus other comprehensive income. Changes in equity for a period resulting from al
SVEN [57.7K]

Answer: Changes in equity for a period from all sources except those by non-owner sources.                            

Explanation: In simple words, comprehensive income refers to those transactions that were not realized before so they later get recorded in the income statement.

These transactions usually results in increase in shareholders equity. Usually such transactions involve unrealized gain or loss from available for sale securities or foreign currency transactions.

8 0
3 years ago
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