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Allushta [10]
3 years ago
7

Acme Co. is considering a four-year project that will require an initial investment of $9,000. The base-case cash flows for this

project are projected to be $14,000 per year. The best-case cash flows are projected to be $21,000 per year, and the worst-case cash flows are projected to be –$2,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.
Business
1 answer:
Ilya [14]3 years ago
3 0

Answer:

See below.

Explanation:

We compute the expected return of the projects taking in to account all the probabilities and comparing the results to initial outlay.

Expected return = Probability * return

Expected return = 14,000*0.5 + 21,000*0.25 + (-2500*0.25)

Expected return = $11,625

Since the expected return of the investment is more that the initial out lay of $9,000 by $2,625, the project should be accepted and invested in.

Hope that helps.

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Joshua is 25 years old and has a high risk job making $72,000 a year. The insurance company charges him an extra 20% on top of h
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3 years ago
Revenues that are legally restricted for expenditure on specified operating purposes should be accounted for in special revenue
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Answer:

Revenues that are legally restricted for expenditure on specified operating purposes should be accounted for in special revenue funds including

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Explanation:

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Pensions are designated to be paid out to the recipients in the future. To achieve these, a certain percentage of their earnings is legally restricted and accounted for in Pension Trust Fund revenues.

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7 0
3 years ago
organizations design and implement systems to capture the details of transactions involved in each business
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4 0
2 years ago
This problem has been solved!
liubo4ka [24]

Answer:

A Overhead:          180,634

B Production Cost: 214,410

C Period Cost:           71,091

Explanation:

<u>Manufacturing overhead</u>

Factory utilities                                   16,942

Depreciation on factory equipment  13,387

Property taxes on factory building      3,252

Indirect factory labor                          49,656

Repairs to office equipment                 2,179

Indirect materials                               84,468

Factory repairs                                     2,465

Factory manager's salary                    8,285

Total:                                                180.634

<u>Product Cost</u>

Direct labor                         71, 743

Direct materials used        142,667

Total:                                  214,410‬

<u>Period Cost </u>

Sales salaries                                 47, 310

Depreciation on delivery trucks     4,546

Advertising                                     15, 712

Office supplies used                       3,523

Total:                                               71,091

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