Answer:
Present value of the liability = $187,268,219
Explanation:
the present value of a single payment to be made sometime in the future is calculated as follows:
where FV is the payment to be made some time in the future= $800 million
i is the discount rate = 9.5%
and n is the number of years left before the payment is made= 16 years
=187,268,219
Answer:
Total product cost= $72,000
Explanation:
Giving the following information:
Direct materials $7.05
Direct labor $3.50
Variable manufacturing overhead $1.65
Total unitary variable cost= $12.2
Fixed manufacturing overhead $11,000
<u>The product costs are the sum of direct material, direct labor, and total manufacturing overhead:</u>
Total product cost= 5,000*12.2 + 11,000
Total product cost= $72,000
To look for the company’s WACC for the level of danger in the
project. A debt-equity ratio of 0.78 suggests a weight of debt of 0.78/1.78 and
a weight of equity of 1/1.80, so the company’s WACC is:
WACC = (0.78/1.78) (0.0780) + (1/1.78) (0.1460)
= 0.03417978 + 0.08202247
WACC = 0.1162 or 11.62%
I’m pretty sure it’s debug!
