Answer:
The Pacific have to charge the customer to achieve that operating income is $17892.
Explanation:
The target Price Pacific should charge to $17892 as it covers the target operating income as well as it covers the total cost of project. The total cost of project is at the level of $16265 x (100 + 10) / 100 = $17892. The difference of $1627 indicates the operating profit of company. Therefore, Pacific should charge 10% the cost of Job for Client 76.
Answer: $240000
Explanation:
Based on the information given in the question, Koosman's cash flows for financing activities in 2017 will be calculated as:
Sale of common stock = $250000
Less: Cash dividend paid = $10000
Cash flow from financing activities = $240000
Your answer is Cost-Push.
Cost push inflation – this occurs when there is a rise in the price of raw materials, higher taxes, e.t.c
Answer:
Please see attached solution
Explanation:
Please find attached detailed solution to the above questions ; 1 , 2 and 3.
Answer:
The project to accept is:
e. E
Explanation:
a) Data and Calculations:
Cost of capital = 10%
Mutually Exclusive Projects:
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
b) Project E should be preferred over all the other projects. It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital. It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.
