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3 years ago

8

ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val

ue analysis.

1 answer:

vodka [1.7K]3 years ago

6 0

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

The present values of the investment proposals will be inaccurate.
The cash flows might be inaccurate.
The discount factor to be used will also be inaccurate.
The overall results will be misleading.
The tax credits and balancing allowances and charges will also be inaccurate.

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18. The following gifts are received in 2016 by a not-for-profit entity: I. $2,000 specified by the donor to be used to pay sala

xeze [42]

Answer:

$7,000

Explanation:

Increase in Temporarily Restricted Net Assets = $2,000 + $10,000 + $5,000 = $17,000

Net increase in Temporarily Restricted Net Assets = Increase in Temporarily Restricted Net Assets - Amount of the conference room furniture purchased = $17,000 - $10,000 = $7,000

Note that the conference room furniture purchased is deducted because the donor did not stipulate a time restriction on holding the furniture.

Therefore, total amount should be recorded as an increase to Temporarily Restricted Net Assets is $7,000.

4 0

3 years ago

Delta Lighting has 30,000 shares of common stock outstanding at a market price of $15 a share. This stock was originally issued

pochemuha

Answer:

the weighted average cost of capital is 11.57 % .

Explanation:

Market Value of Equity = Number of Common Shares Outstanding × Market Price per share

= 30,000 shares × $15

= $450,000

Market Value of Debt = Face Value × 82%

= $280,000 × 82%

= $229,600

WACC = Ke × (E/V) + Kd × (E/V)

= 14.00 % × ($450,000/ $679,600) + 6.80 % × ($229,600/ $679,600)

= 9.27 % + 2.30 %

= 11.57 %

3 0

3 years ago

What is the value of (123)°?

Maksim231197 [3]

Explanation:

The value refers to the worth of each digit depending on where it lies in the number. We calculate it by multiplying the place value and face value of the digit. Value=Place Value × Face Value. For instance: If we consider a number 45.

5 0

3 years ago

Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a

larisa [96]

Answer:

January cost $702,200

February cost $812,200

March cost $950,400

Total Purchase cost

Particulars January February March

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

$ 702,200.00 $ 812,200.00 $ 950,400.00

Explanation:

R.M budget - blades

Particulars January February March April

Planned production 11000 13000 16000 12000

Blades req. per unit 4 4 4 4

Material req. for prod. 44000 52000 64000 48000

Add: Desired ending inventory 20800 25600 19200 0

Less: Beginning inventory 13000 20800 25600

Net units of blades req. 51800 56800 57600

Cost per blade $ 4.00 $ 4.00 $ 4.00

Purchase cost of blades $ 207,200.00 $ 227,200.00 $ 230,400.00

R.M budget - motor

Particulars January February March April

Planned production 11000 13000 16000 12000

Motor req. per unit 1 1 1 1

Material req. for prod. 11000 13000 16000 12000

Cost per motor $ 45.00 $ 45.00 $ 45.00

Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

6 0

4 years ago

A periodic review system is __________. a. a term used to indicate the amount of demand b. to be met under conditions of demand

vladimir2022 [97]

Answer:

The correct answer is letter "C": an inventory system that is used to manage independent demand inventory.

Explanation:

A Periodic Review System is used to keep track of the inventory of a firm after determined periods. Review intervals are set by the company in an attempt to find out the amount of stock needed to fulfill consumers' orders or to reach the company's Target Inventory (TI). This inventory system is used to handle independent demand inventory.

3 0

3 years ago