Answer:
NPV = 1,003,046
Explanation:
NPV = Present value of income - investment
investment 8,000,000
1,490,000 income per year during 8 years at rate x
We need to calculate the WACC so we can know the rate
equity-ratio = 0.40
debt-equity ratio = 0.6
WACC 6.69590%
Now that we achieve the rate we solve for the present value of the cash flow
PV 9,003,046
And finally get the answer
NPV 9,003,046 - 8,000,000 = 1,003,046
Answer:
4 months.
Explanation:
This is because the months for which interest have been accrued are March, April, May, and June of year 1. These are 4 months in total.
Therefore, Finch's debt service fund should include interest payable on the general obligation bonds for 4 months.
Answer:
B. Aging of accounts receivable
Explanation:
For determining the proper amount that would be included in the allowance for doubtful debts, the aging of account receivable is used because it told that in how many days, the amount would be collected through which the company can estimate its bad debts.
The accounts receivables arise when the business organization serves the goods and services to the customers on a credit basis, not on cash basis.
Hence, the most appropriate option is B.
Lena makes $45 profit.
Extra information:
The amount of profit Lena makes is 3/4th of the profit Joe makes, seeing as when Joe makes $4 profit, Lena makes $3 and $3 is 3/4th of $4. Therefore, when Joe makes a profit of $60, Lena makes a profit of (60 x 3/4) $45.
Answer:
1. a. For Beck Inc = $5
b. For Bryant Inc. = 2.5
2. For Beck Inc = $100,000
For Bryant Inc. = $150,000
Explanation:
The computation of given question is shown below:-
a. Operating leverage = Contribution ÷ Net income
For Beck Inc
= $500,000 ÷ $100,000
= $5
For Bryant Inc.
= $750,000 ÷ $300,000
= $2.5
2. Operating income = Current Earning before interest and tax × Percentage increase in profit
For computing the operating income first we need to compute the increase in profit.
Increase in profit = Operating leverage × Percentage
For Beck Inc. = $5 × 20%
= 100%
now we put into formula
= $1,00,000 × 100.00%
= $100,000
For Bryant Inc. = $2.5 × 20%
= 50%
now we put into formula
= $3,00,000 × 50%
= $150,000