Answer:
Yes it should as the net present value at the firm WACC is positive $ 4,156.54
Explanation:
we are given with the after-tax cost for the machine and after-tax cost of the labor cost savings the new machine will provide
So we should check if the present value of the savings is greater or equal than the machine cost:
C $ 8,000
time 10 years
rate=WACC= 0.1
PV $49,156.5368
Net present value:
inflow - cost
49,156.54 - 45,000 = 4,156.54
Answer:
c. 10%
Explanation:
Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.
Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units
Percentage of margin of safety to sales = Margin of safety / Actual sales
Percentage of margin of safety to sales = 1,250 / 12,500
Percentage of margin of safety to sales = 0.10
Percentage of margin of safety to sales = 10%
Answer:
A) 19.91%
Explanation:
Net present value of cash flow at 19.91% can be calculated as follows
- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶
= -100000 + 25018 +20864 +17400 +14511 +12101 +10092
= 0 ( approx )
So the IRR for the project is 19.91 % .
<span>Once the organization structure is in place, a supervisor must identify the tasks to be done, combine them into jobs, and then formalize the process through a: D. Scalar Chain
In a scalar chain, there is a clear distinction of authority between the supervisor and te employees. In this process, the employees are free to communicate to the supervisor about anything</span>
Answer: The answers are explained below.
Explanation:
• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.
• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.
• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.
• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.
• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.
• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.
• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.
