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3 years ago

When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:

Business

1 answer:

saveliy_v [14]3 years ago

3 0

Answer and Explanation:

b. Previous expenditures associated with a market test to determine the feasibility of the project, provided those costs have been expensed for tax purposes.

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Skilled versus unskilled labor markets Consider the labor markets for unskilled workers and skilled workers in the United States

Nat2105 [25]

Answer: Skilled Workers.

Explanation:

Skilled workers refers to those with the skills and abilities required to work in their various tasks. Often these skills are gained from tertiary level institutions such as Universities, Colleges or Technical Schools.

When the report speaks of how having a college education leads to increased productivity, it is targeting skilled workers who as the definition states, have probably gone to College or Universities and the like.

This report will increase the labour market for skilled college education holders as companies might want to hire them more to gain from the reported increased productivity.

8 0

4 years ago

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output is $5.00 and the m

Rufina [12.5K]

Shut down, if the minimum possible average variable cost is $5

In the purely competitive market majority of the producers is price taker as there are many sellers of the same homogenous product. When in the situation of Marginal Cost (MC) of product at the current rate of production is equal to the market price. This shows that the firm isn’t in profit, it is selling at which they are producing. So, the Average Variable Cost AVC of product at this level indicates the shutdown of the firm production.

For the questions related to the competitive Market visit the link:

brainly.com/question/15410678

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5 0

2 years ago

Ranada Company manufactures and sells sportswear products. Ranada uses activity-based costing to determine the cost of the custo

mote1985 [20]

Answer: The customer cost for combined shipping and returns of Product 1 is $6.25 per unit.(option c)

We arrive at the answer as follows:

A. Calculating cost of returns

$Cost of returns = Cost per returns * Number of returns$

$Cost of returns = 45 * 150$

$Cost of returns = 6750$

B. Calculating Cost of shipments

$Cost of shipments = Rate per shipment * Number of shipments$

$Cost of shipments = 10 * 1200$

$Cost of shipments = 12000$

C.Calculate total cost of shipments and cost of returns

$Total Cost = Cost of shipments + Cost of returns$

$Total Cost = 12000 + 6750$

$Total Cost = 18750$

D. Calculate cost per unit

$Cost per unit = \frac{Total Cost}{Number of units shipped}$

$Cost per unit = \frac{18750}{3000}$

$Cost per unit = 6.25$

4 0

4 years ago

Covent Gardens Inc. is considering two financial plans for the coming year. Management expects sales to be $300,000, operating c

Dominik [7]

Answer:

Assets = $200,000

For Plan A

25% debt = 200,000 * 25% = 50,000

75% equity = 200,000 * 75% = 150,000

The debt will generate 8.8% interest expense. Interest expense = 50,000 * 8.8% = 4,400

Income for the expected project under Plan A

Sales revenue 300,00

Operating cost 265,000

EBIT 35,000

Interest expense 4,400

EBT 30,600

Income tax 10,710

Net income $19,890

Times interest earned = EBIT /interest expense = 35,000 / 4,400 = 7.95. So, it achieve the requirement of 4.5 or above.

ROE for plan A = Net income / Equity = 19,890/150,000 = 0,1326 = 13.26%

Under Plan B

We will take as much debt as we can until Times interest earned = 4.5

EBIT / interest expense = Times interest earned

35,000/Interest expense = 4.5

Interest expense = 35,000/4.5

Interest expense = 7.777,78

Net income = (EBIT - interest) x (1- tax-rate)

Net income = (35,000 - 7,777.78) x (1-35%)

Net income = 17.694,443

Interest expense = Debt * Rate

Debt = Interest expense / Rate

Debt = 7,777.78/0.088

Debt = 88.383,86

Asset = Debt + Equity

200,000 = 88,383.86 + Equity

Equity = 200,000 - 88,383.86 =

Equity = 111,616.14

ROE for Plan B = Net income/ Equity = 17,694.443 / 111,616.14 = 0,15852943 = 15.85%

So, we compare both ROE

Plan A = 13.26%

Plan B = 15.85%

Difference = 2.59%

So therefore, using the Plan B will increase the ROE for 2.59%

5 0

3 years ago

When job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. a total of 1,00

Viefleur [7K]

To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.

Direct materials = $4,400
Direct labor = $5,600
Factory overhead = $2,400
Units produced = 1,000

Per unit cost = ($4,400 + $5,600 + $2,400)/1,000
Per unit cost = $12,400/1,000
Per unit cost = $12.40

4 0

4 years ago