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NemiM [27]
3 years ago
12

1. Capital budgeting decisions are used to determine how to raise the cash necessary for investments. a.True b. False 2. A firm

decides to pay for a small investment project through a $1 million increase in short-term bank loans. This is best described as an example of a(n): A. financing decision. B. investment decision. C. capital budgeting decision. D. capital market decision.
Business
1 answer:
AlekseyPX3 years ago
5 0

Answer:

1. False

2. A. financing decision

Explanation:

The capital budgeting refers to the investment in long term assets like machinery, new process, plants, machine replacement that can increase productivity and create a better return in the near future. There are various processes to determine it. It can be by net present value, internal rate of return, etc

The financial decision belongs to a certain decision that illustrates the allocation of financing and funding. It also helps in paying the investment and keeping expenses that can increase the wealth of the shareholder.  

It is made up of decisions related to capital budgeting, working capital management. The working capital displays the current assets and current liabilities According to the case, as the small investment project is paid through a $1 million that results in an increase in a short term bank loan

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The parents of a young child decide to make annual deposits into a college savings account. The first deposit will be made on he
Gnom [1K]

Answer:

The amount of the equal, annual deposits made on birthdays 5 through 15 is $3,970.58

Explanation:

First, let's calculate the present value of the college expenses on her 17th birthday (a year before college) using NPV formula

NPV(9%, 20000...32000) = $82,839.69

Now, its value on 15th birthday should be equal to 82,839.69 / (1 + 9%)² = $69,724.51

Using the PMT formula, we can calculate the annual amount they have to invest for 11 years to get to this sum at 9% annual rate

PMT(rate = 9%, nper = 11, pv = 0, fv = 69,724.51, 0) = $3,970.58

5 0
3 years ago
Which organization or agency assists the fire department by alerting the public of traffic incidents or evacuations?
MariettaO [177]

Media is the organization or entity that would help the fire department with incident scene security, crowd control, and explosives disposal.

Law enforcement is the organization or entity that would support the fire department with incident scene security, crowd control, and explosives disposal. Law enforcement forces respond to emergencies around the clock and operate under a paramilitary command structure. In most traffic situations, officers act alone and are taught to make unilateral command judgments. Fire and rescue services respond to emergencies around the clock and follow a well-defined command structure on the scene. The core constituency of traffic incident management consists of eight key disciplines: law enforcement, fire and rescue, emergency medical, transportation, towing and recovery, hazardous materials cleanup, public safety communications and dispatch, and traffic reporting.

Learn more about Law enforcement here:

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3 0
1 year ago
For which market structure do economists have the least precise model of price​ determination?
sasho [114]
<span>The market structure for which economists have the least precise model of price​ determination is oligopoly.

</span><span><span>Oligopoly is a market structure in which a small number of firms has the large majority of market share.</span></span>
4 0
3 years ago
A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th
agasfer [191]

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

6 0
3 years ago
Horten Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make
Aneli [31]

Answer:

Horten Sporting Goods Corporation

                                    TR                BR

a. Cost per unit         $66.98        $62.08

b. Price of Badminton Racquets = $80.70

Explanation:

a) Data and Calculations:

                                   Tennis              Badminton

                                Racquets              Racquets

Units produced          70,000                 30,000

Direct costs:

Direct materials      $17.10 per unit      $14.80 per unit

Direct labor             33.50 per unit        23.10 per unit

Category       Estimated   Cost Driver                         Amount of Cost Driver

                          Cost                                                      TR         BR      Total

Unit level       $736,000 Number of inspection hrs   15,900  7,100  23,000

Batch level      353,800  Number of setups                     83       39        122

Product level   152,500  Number of TV commercials       4          1            5

Facility level   630,000   Number of machine hrs  30,600 39,400 70,000

Total           $1,872,300

Overhead Rates:

Inspection  = $32 ($736,000/23,000) per inspection hour

Equipment setup = $2,900 (353,800/122) per equipment setup

TV commercials = $30,500 ($152,500/5) per commercial

Depreciation = $9 ($630,000/70,000) per machine hour

Overhead Allocation:

                                                        TR                  BR                    Total

Inspection  = $32                     $508,800       $227,200       $736,000

                               ($32*15,900)           ($32*7,100)

Equipment setup = $2,900       240,700            113,100         353,800

                                ($2,900*83)            ($2,900*39)

TV commercials = $30,500      122,000            30,500          152,500

                               ($30,500 *4)            ($30,500 *1)

Depreciation = $9                    275,400          354,600         630,000

                              ($9 * 30,600)            ($9 * 39,400)    

Total allocated expenses   $1,146,900        $725,400     $1,872,300

Units produced                        70,000           30,000

Overhead cost per unit         $16.384           $24.18

Cost per unit:

                                    TR                BR

Direct materials        $17.10         $14.80

Direct labor               33.50           23.10

Overhead cost          16.38            24.18

Total cost per unit $66.98        $62.08

Cost of Badminton = $62.08

30% markup =              18.62

Price =                        $80.70

7 0
3 years ago
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