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3 years ago

Moates Corporation has provided the following data concerning an investment project that it is considering:

Business

1 answer:

sertanlavr [38]3 years ago

3 0

Answer:

The net present value of the project is closest to $144,128. The right answer is b

Explanation:

In order to calculate the The net present value of the project we would have to use the following formula:

Net present value = PV of cash inflows - Initial investment

Present value of cash inflows = Annual cash flow * PVIFA (N,I) where N = 4 and I = 8%

Present value of cash inflows= 119000 * PVIFA (4, 8%) = 119000 * 3.3121

Present value of cash inflows=$394,135

Therefore, Net present value= $394,135 - $250,000

Net present value= $144,135

The net present value of the project is closest to $144,128

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A beneficiary acquired stock from a decedent. The stock's fair market value at the date of the decedent's death was $500,000. Th

Ivanshal [37]

Answer:

Beneficiary recognized gain is $510000.

Explanation:

The amount paid by the decedent for the stock = $280000

The market value of the stock at the time of death = $500000

The selling price or the amount received by the beneficiary by the sell of stock = $510000

Since the recognized gain is calculated by subtracting the amount paid by the person to buy the stock from the amount that he receives from the sale of stock. But in this case, the beneficiary pays zero for the stock but gets all the money after selling.

Beneficiary recognized gain = amount received from the sell – the amount paid by the beneficiary.

= $510000 – 0

= $510000

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3 years ago

their major products, the plastic container. Budgeted quantity Budgeted price Direct materials 0.25 pounds $30 per pound Direct

pshichka [43]

Answer:

Total Material cost variance $5,600 favorable

Explanation:

The direct matriculate total variance is he difference between the standard material cost for the actual output achieved and the actual material cost of the same output

Standard materiel cost per unit = 0.25 × $30 = $7.5 per unit

5,000 units should have cost (5000× $7.5) = 37,500

but did cost (actual cost 1,000 × $29 31,900

Total Material cost variance 5600 favorable

3 0

3 years ago

Assume that investors can borrow and lend at risk-free rate of 5%. The optimal tangent portfolio on the efficient frontier has a

gizmo_the_mogwai [7]

Answer:

B. Portfolio B with E(R)=13% and STD=18%

Explanation:

The computation is shown below;

Reward to risk ratio = (15% - 5%) ÷ 20% = 0.5

The porfolio should be in line i.e.

= 0.05 + 0.5 × standard deviation

For portfolio A

= 0.05 + 0.5 × 25

= 17.5%

For portfolio C

= 0.05 + 0.5 × 1

= 5.5%

Portfolio B, the std is 18%

So,

= 0.05 + 0.5 × 18%

= 14%

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3 years ago

Economists consider governments to be "wasteful:" - whenever they over- or underallocate resources to a project. - only when the

ahrayia [7]

Answer:

The correct answer is: whenever they over- or under-allocate resources to a project.

Explanation:

A government is considered to be wasteful by the economists if it over-allocates or under-allocates resources on a project. Whenever resources are not efficiently or optimally allocated it is considered wasteful.

In case resources are over-allocated, the reason is given that the excess resources could have been used somewhere else.

In case resources are under-allocated, the reason is given that the given resources will not be able to provide the desired output.

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3 years ago

How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying

Marat540 [252]

Answer:

C)Two.

Paying employees' salaries for the current month

Receiving but not paying a current utility bill.

Explanation:

When salaries are played to employees, an entry is recorded in Salary Expense account.

In accrual accounting when utility bill is received it is recognised in the books even when payment has not been made. Because it is a current utility bill it has to be recorded in this period.

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3 years ago