An investor buys 400 shares of stock in a fund when the net asset value is $23.79 and the offer price is $23.89. The investor

Major Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu

Annette [7]

Answer:

a. $ 82, 063

b. - $ 19,206

c. 11.24%

Explanation:

Net Present Value is calculated by taking the Present Day (Discounted) value of all future Net Cash flows based on the company`s Cost of Capital and subtracting the Initial Cost of the Investment.

<em>Using a Financial Calculation</em>

a.

Cash flow Amount

Cf0 = ($665,000)

Cf1 = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 8%

NPV = $ 82, 063

b.

Cash flow Amount

Cf0 = ($665,000)

Cf1 = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 12%

NPV = - $ 19,206

c.

Internal Rate of Return = P + ((N-P)×p/(p+n))

= 8% + ((12%-8%)×$ 82, 063/($ 82, 063+ $ 19,206))

= 11.24%

3 0

3 years ago

The double-declining-balance and straight-line depreciation methods: multiple choice are the only acceptable methods of deprecia

zheka24 [161]

The double-declining-balance and straight-line depreciation methods Produce the same total depreciation over an asset's useful life.

Two of the four depreciation methods permitted by US generally accepted accounting standards are the straight-line and double-declining-balance depreciation procedures (GAAP).
The sum of the years' digit and units of production are the other two techniques. By deducting the salvage value from the asset's purchase price and either dividing the depreciable amount by the number of years or applying a preset rate to the depreciable amount, the straight-line method is derived.
The depreciation rate is calculated using the double-declining-balance technique by dividing 100 percent by the asset's useful life in years, then multiplying the result by two.
The diminishing amount is then used to calculate depreciation expenditure until only the salvage value is left. They therefore result in the same depreciation over the course of the asset's useful life.

<h3>Is double declining balance a method of straight-line depreciation?</h3>

The straight-line depreciation technique, another and arguably even more frequent type of depreciation, depreciates an asset's value at a rate that is half that of the DDB depreciation method.

<h3>What is double declining balance depreciation method?</h3>

A type of accelerated depreciation method called the double-declining balance method doubles the rate at which an asset's value depreciates compared to the straight-line approach.
Accelerated depreciation refers to the process of depreciation that occurs twice as quickly as the straight-line method.

Learn more about double-declining-balance here:

brainly.com/question/24296752

#SPJ4

4 0

2 years ago

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often

algol13

Answer:

The correct answer is (B)

Explanation:

Economics is a study of the market and human behaviour. Economists usually use historical data, conduct interviews and surveys to find a pattern to predict and forecast. In economics, it is almost impractical to conduct laboratory experiments because laboratory experiments leave out various aspects of reality and leave out relevant variables. Furthermore, It is difficult to find a way to use a laboratory experiment to predict and forecast.

4 0

3 years ago

Jermaine Dye Corporation acquired two inventory items at a lump-sum cost of $50,000. The acquisition included 3,000 units of pro

vesna_86 [32]

Answer:

Gross profit=15,000-9,375=$5,625

Explanation:

Gross profit can be calculated by the any corporation as follows:

Gross profit: Sales- Cost of sales

In given scenario, sales and cost of sales can be determined as follows:

Sales=Number of LF units sold by Jermaine Dye Corporation*sale price per unit of LF

=1,000*15=$15,000

The corporation is selling LF for 15$ which is 3 times the price at which it is selling 1B and assuming that the entity is earning same gross profit margin on both products, then cost of sales can be determined as follows:

Lets say that cost of one unit of "1B" is "z" then the cost of one unit of "LF" will be "3z" and following equation can be formed for cost of sales:

3,000(3z)+7,000(z)=50,000

9000z+7000z=50,000

16,000z=50,000

z=$3.125(50,000/16,000)=cost of one unit of 1B

Cost for one unit of LF=3*3.125=$9.375

Cost of sales for 1,000 units=9.375*1000=$9,375

Gross profit=15,000-9,375=$5,625

5 0

3 years ago

In two or more complete sentences, compare and contrast making a purchase with a debit card versus making a purchase with a cred

Vlad [161]

Answer:

When you pay with a credit card you use the bank's money that you have to pay back but with a debit card, you are using money straight out of your account. In the end, you are basically using your money just not in the form of paper.

Explanation:

When you pay with a credit card you use the bank's money that you have to pay back but with a debit card, you are using money straight out of your account. In the end, you are basically using your money just not in the form of paper.

3 0

2 years ago