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3 years ago

When choosing between mutually exclusive projects, what is the best method to use?

Business

1 answer:

KIM [24]3 years ago

7 0

Answer:

Option C. The highest NPV is always the best option.

Explanation:

The reason is that IRR assumes that the reinvestment rate is also at IRR which is not a realistic assumption. The Net Present Value resolves this as it assumes that the reinvestment rate is cost of capital and hence is more better than IRR to appraise the project.

The decision rule in the Net present value method is that the project which has higher positive Net present value is regarded as best project among two mutually exclusive projects.

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Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shar

labwork [276]

Answer:

The answer is $1,404,000

Explanation:

Total amount realized from the issuance: 40,000 shares x $24

= $960,000

Treasury stock repurchased:

6,000 shares x $26

=$156,000

Net income = $600,000

The total amount of stockholders' equity at December 31, 2018 is:

Net income + amount realized from issuance - amount of treasury stock

$600,000 + $960,000 - $156,000

$1,404,000

3 0

3 years ago

the increasing cost and volatile prices of natural resources is a key driver of sustainable marketing. the increasing cost and v

Vinvika [58]

The increasing cost and volatile prices of natural resources is a key driver of sustainable marketing. the increasing cost and volatile prices of natural resources are key drivers of sustainable marketing. False

Sustainable marketing is the promotion of environmentally and socially accountable merchandise, practices, and brand values. if you've ever spent a touch bit greater on something due to the fact you knew it turned into domestically sourced or 100% recyclable, you've got experienced sustainable advertising.

As an example, if clients value a product's residences, the organization can also market the product as being crafted from recycled substances. If customers recognize a product's capacity to save them time, the enterprise may additionally market the product as being easy to apply and time-saving.

Learn more about Sustainable marketing here:

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8 0

1 year ago

You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a frien

bulgar [2K]

Answer:

The correct answer is letter "D": The football game you forego by watching the movie again.

Explanation:

Opportunity cost is what a person sacrifices when they choose one option over another. Opportunity cost is calculated by subtracting the return of the forgone option from the return of the chosen option. The result represents what was left on the table. Sometimes the chosen option can provide better returns than the forgone option and vice-versa.

In that case, the opportunity cost of watching "The Dark Knight Rises" one more time with a friend is the football game left behind.

8 0

3 years ago

The LIFO inventory method assumes that the cost of the latest units purchased are:

Scilla [17]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The LIFO inventory method assumes that the cost of the latest units purchased are:

Under the Last-in, First-out method the first units on inventory are the ones left to ending inventory. On the contrary, the last units are the first ones to go to the cost of goods sold.

a. the last to be allocated to the cost of goods sold. False, this is under the FIFO method.

b. the first to be allocated to ending inventory. False, this is under the FIFO method.

c. the first to be allocated to the cost of goods sold. True.

d. not allocated to cost of goods sold or ending inventory. False, they are allocated to cost of goods sold.

4 0

3 years ago

Exercise 25-3 Stefani Company has gathered the following information about its product. Direct materials: Each unit of product c

katovenus [111]

Answer:

Total standard cost per unit= $71,41 unit

Explanation:

Standard cost is the sum of direct materials, direct labor, and manufacture overhead.

Direct materials:

Each unit of the product contains 3.40 pounds of materials.

The average waste and spoilage per unit produced under normal conditions is 0.10 pounds.

Materials cost $2 per pound, it takes a 5.00% cash discount.

Freight costs $0.45 per pound.

Direct materials= (3,4+0,10)*(2*0,95)+ (0,45*3,5) =$8,20unit

Direct labor:

Each unit requires 2.80 hours of labor.

Setup, cleanup, and downtime 0.10 hours per unit.

The average hourly pay rate of Stefani’s employees is $13.10.

Payroll taxes and fringe benefits are an additional $3.00 per hour.

Direct labor=($13,10*2,9hours)+($3*2,9hours)=$46,69 unit

Manufactured overhead:

Overhead is applied at a rate of $5.90 per direct labor hour.

Overhead=$5,90*2,8hours=$16,52unit

Total standard cost per unit= 8,20+46,69+16,52=$71,41 unit

4 0

3 years ago