Answer:
Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people
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Explanation:
Answer:
Purchases= $26,550
Explanation:
Giving the following information:
Production:
January= 2,900 units
February= 3,600 units
Norton budgets $20 per unit for direct materials.
Beginning inventory raw materials= $38,650.
Desired ending inventory direct materials= 10% of the next month's direct materials needed for production.
To calculate the purchases of direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 2,900*20 + (3,600*0.1)*20 - 38,650
Purchases= $26,550
Answer: After-tax cost of debt is 7.8%.
Explanation:
Given that,
coupon = 10% (outstanding bonds)
yield to maturity (YTM) = 12%
marginal tax rate = 35%
The after-tax cost of debt:
After-tax cost of debt = YTM (1 - Tax rate)
= 12% (1 - 0.35)
= 0.12 (0.65)
= 0.078
= 7.8%
YTM is used in the after-tax calculation because it represents the true pre-tax cost of debt to the issuer.
Therefore, the after-tax cost of debt is 7.8%
Answer:
A) $82,622
Explanation:
first we must determine the net cash flows for years 1-4:
net cash flows = [(total revenue - total costs) x (1 - tax rate)] + depreciation expense
- CF1 = [($234,135 - $125,565 - $66,750 - $3,300) x (1 - 40%)] + $3,300 = $26,412
- CF2 = [($226,460 - $119,444 - $68,950 - $4,500) x (1 - 40%)] + $4,500 = $24,640
- CF3 = [($255,132 - $133,665 - $69,690 - $1,500) x (1 - 40%)] + $1,500 = $31,666
- CF4 = [($272,318 - $138,923 - $68,900 - $700) x (1 - 40%)] + $700 = $38,977
now we can calculate the project's NPV:
NPV = -10,000 + 26,412/1.11 + 24,640/1.11² + 31,666/1.11³ + 38,977/1.11⁴ = -10,000 + 23,795 + 19,998 + 23,154 + 25,675 = $82,622
Answer:
d. may be involved with the sale of new marketing programs to clients.
Explanation:
A revenue center manager -
It refers to the person , who is responsible for the generation of the sales , is referred to as a revenue center manager .
A good revenue center manager is determined by his or her ability to generate the sales , not by the cost incurred .
Hence , from the given question,
The correct option is d.
