Answer:
Hotco
If it occurred, this would constitute a disadvantage for Hotco of the plan described above:
E) A steady increase in the price of oil beginning soon after the new burner is installed.
Explanation:
A steady oil price increase commencing soon after the new burner is installed will obliterate the actual cost savings from which Clifton Asphalt would be paying Hotco for the oil burners.
This is buttressed by the fact of the payment terms that totally depends on the cost savings.
Even the adjustment after two years may not benefit Hotco if the steady increase in the price of oil persists.
Answer:
The correct answer is Double-declining-balance. The highest net income in year 2 is 6000.
This higher net income don´t mean the machine was used more efficiently under this depreciation method.
Explanation:
In the file attached you will find a depreciation schedule for each of the alternative methods.
Each method need different calculus.
Straight-line
depreciation expense=(Original Value -Residual Value)/Useful life=
depreciation expense=4400
Units-of-production
estimated productive life 10000
Units of Production Rate=(Original Value -Residual Value)/estimated productive life=2,2
Double-declining-balance.
Depreciation rate = 1/useful life *100= 20,00%
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
First, we add up all the benefits that Gerome Houser gets from his job. That is,
$1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer.
($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%.
Answer:
Equity of the business= $17,076.
Explanation:
Equity as used in business is used to refer to the difference between the worth of a business (its assets) and what the business owes (debts and liabilities).
In other words, total equity refers to the value which is left in the company after the total liabilities must have been subtracted from the total assets.
The formula to calculate total equity is given below:
Equity = Assets - Liabilities
Therefore to calculate the equity above, we have:
Equity = $64,342 - $47,266
Equity = $17,076.
