Why is saving for education sometimes harmful when filling out a FAFSA for student aid?

The following costs and useful life data are associated with two new machines being considered at Arun Tech Inc.

Sidana [21]

Answer:

Machine B has a higher NPV therefore should be produced

Explanation:

The machine with the higher Net Present Value (NPV) should be produced .

NPV of Machine A

PV of cash flow

PV of annual profit = A × (1- (1+r)^*(-n)/r

A- 92,000, n- 11, r- 12%

PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32

PV of salvage value = 13,000× 1.12^(-11)= 3737.189

NPV = 546268.320 + 3737.189 -250,000 = $300,005.50

NPV of Machine B

A- 103,00, n- 19, r- 12%

PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165

Pv of salvage value = 26000× 1.12^(-19)= 3018.776199

NPV =758675.0165 + 3018.77 -460,000 = $301,693.79

Machine B has a higher NPV , therefore should be produced.

6 0

3 years ago

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For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. C

ICE Princess25 [194]

Answer:

Net income decreased by $4,850,000.

Explanation:

Given total overhead applied = $48000000

The actual overhead = $52850000

Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.

Over / under Applied overhead = 48000000-52850000

Over / under Applied overhead = -$4850000

From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.

4 0

3 years ago

$5,000 is invested in two different accounts yielding 3% and 3.5% interest. The interest earned on the two accounts is $155. How

Ne4ueva [31]

$4000 was invested at 3% interest.

Solution:

Assume that x and y represent the amount at 3.5% and 3% respectively. So, according to the given statements we get two equations,

$x+y=5000\rightarrow(1)\\\\3x+3.5y=15500\rightarrow(2)$

On multiplying equation (1) by 30 and equation (2) by 10 we get,

$30 x+30 y=150000\\\\30 x+35 y=155000$

On solving both the equations we get,

$\Rightarrow5y=5000\rightarrow y=\frac{5000}{5}\rightarrow y=1000\rightarrow(3)$

On substituting (3) in (1) we get,

$\Rightarrow x+1000=5000\rightarrow x=5000-1000\rightarrow x=4000$

Therefore, $4000 was invested at 3% interest and $1000 was invested at 3.5% interest.

6 0

4 years ago

Shown here are annual financial data at December 31, 2017, taken from two different companies. Beginning inventory Merchandise $

REY [17]

Answer:

Let Company 1 be Green Company Ltd

Let Company 2 be Yellow Company Ltd

Green Company Ltd

Partial Income Statement

For year ended December 31, 2017

Beginning merchandise inventory $125,000

Add: Cost of purchases $320,000

Goods available for sale $445,000

Less: Ending merchandise inventory $110,000

Cost of goods sold $335,000

Yellow Company Ltd

Partial Income Statement

For year ended December 31, 2017

Beginning finished goods inventory $380,000

Add: Cost of goods manufactured $572,000

Goods available for sale $952,000

Less: Ending finished goods inventory $300,000

Cost of goods sold $652,000

3 0

3 years ago

The Grow Your Garden seed company recently conducted a situation analysis. It decided on its marketing goals too. What is its ne

Sedaia [141]

The correct answer is B. To plan effective strategies and specific tactics to accomplish the strategic objectives

Explanation:

The purpose of a situation analysis is to understand deeply a business strengths, potential for growth, areas to improve, among others. Additionally, a business analysis is an important step in a marketing plan that is used for businesses to set and achieve goals according to their situation. In this context, after the situation analysis, the next step is to set goals for the business and then to decide on the strategies and tactics that will be used because without specific strategies it would not be possible to achieve the proposed goals.

Also, after the strategies have been implemented you can evaluate the results or implementation and conduct another situation analysis to verify the business grew or there was an improvement. Thus, the next step after setting goals is "To plan effective strategies and specific tactics to accomplish the strategic objectives."

3 0

3 years ago

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