Answer:
$664,000
Explanation:
The computation of the budgeted total manufacturing cost is shown below:
Budgeted total manufacturing costs is
= Fixed cost + Variable cost
= $24,000 + ($16 × 40,000 linear feet of block)
= $24,000 + $640,000
= $664,000
We simply added the fixed cost and the variable cost so that the total budgeted manufacturing cost could come
Answer:
$730,000 should be Included in the Initial cash flow of the project for this building
Explanation:
Complete question <em>"Mason Farms purchased a building for $689,000 and made repairs costing $136,000. The annual taxes on the property are $8,200. The building has a current market value of $730,000 and a current book value of $394,000. The building is mortgage-free. If the company decides to use this building for a new project, what value, If any, should be Included in the Initial cash flow of the project for this building?"</em>
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In this context where the company decides to use this building for the new project, the current Market value has to be included in the initial cash flow of the project for this building because it is is an opportunity cost. Hence, $730,000 should be Included in the Initial cash flow of the project for this building.
Maslow's<span> hierarchy of </span>needs is theory in psychology that is focused on the needs p<span>eople are motivated to achieve.It is a five-tier model.</span><span>
According to Maslow's need hierarchy, the advertised benefits of the product appeal to Josef's psychological, security, and safety needs.</span>
For the first investment the solution as follows
Annual depreciation
600,000÷6 years=100,000
Net annual cash flows
100,000+155,000=255,000
Present value
255,000×4.11141+16,600×0.50663
=1,056,819.608
Net present value
1,056,819.608−600,000=456,819.608
For the second investment the solution as follows
Annual depreciation
390,000÷8 years=48,750
Net annual cash flows
48,750+60,000=108,750
Present value
108,750×4.96764+24,500×0.40388
=550,125.91
Net present value
550,125.91−390,000=160,125.91
Answer:
7.38%
Explanation:
Interest rate is the rate of difference between the current price and face value in a specified period of time in annual terms.
Face value Current price Coupon Maturity
100 95 0 1 year
100 92 1.5 paid every six months
One year rate = ( 100 / 95 ) - 1 = 0.0526 = 5.26%
Now use following formula to calculate the Two years rate
=Rate(4,1.5,-92,100)x2 = 0.0738 = 7.38%