Answer:
NPV = $ 87,592.90
Explanation:
Net present value is calculated by taking the Present Day (discounted) value of all future Net Cash Flow based on the Business Cost of Capital and subtracting the Initial cost of the Investment.
<u>Calculation of Net present value (Financial Calculator)</u>
Period and Cash flow
CF0 = ($900,000)
CF1 = $200,000
CF2 = $200,000
CF3 = $200,000
CF4 = $200,000
CF5 = $200,000
CF6 = $300,000
Cost of Capital = 8%
NPV = $ 87,592.90
Answer:
d. Deductible compensation expense must be considered reasonable under the facts and circumstances of the employment.
Explanation:
Elon Musks collected billions of dollars due to the excellent performance of Tesla's stocks. The compensation awarded to the CEO, CFO and maximum three other executives must be reasonable. Performance based compensation is not limited in an amount, instead they are limited on the number of people that receive them.
Answer:
The budgeted variable overhead for May is $5,335
The budgeted variable overhead for June is $7,260
The budgeted fixed overhead for both May and June is $11,500 per month
Explanation:
First we have to determine how many tricycles does Becker Bikes expects to manufacture during May and June:
May:
beginning inventory May 180
expected sales May 520
ending inventory May 145
Becker is planning to manufacture 485 tricycles (= 520 + 145 -180)
June:
beginning inventory May 145
expected sales May 650
ending inventory May 155
Becker is planning to manufacture 660 tricycles (= 650 + 155 -145)
The budgeted variable overhead for May = 485 tricycles x $11 per tricycle = $5,335
The budgeted variable overhead for June = 660 tricycles x $11 per tricycle = $7,260
The fixed overhead for both May and June is $11,500 per month
Answer:
3.73%
Explanation:
The computation of the rate of interest that makes the equivalent is shown below:
As we know that
Present value=Cash flow × Present value discounting factor ( interest rate% , time period)
Let us assume the interest rate be x
where,
Present value of $400,000 is
= $400,000 ÷ 1.0x ^5
And,
Present value of $1,000,000 be
= $1,000,000 ÷ 1.0x^30
Now eqaute these two equations
$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30
(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000
1.0x^(30 - 5)=2.5
1.0x^25=2.5
1.0x = (2.5)^(1 ÷ 25)
x =1.03733158 - 1
= 3.73%
Answer:
The correct answer is Resources of the company equal creditors' and owners' claims to those resources.
Explanation:
It can be used to determine that the income or income of the consumer is exactly equal to the expense (purchase) of goods, for the determined period of consumption. In other words, by adding the value spent on the acquisition of goods "x" and goods "y". To have such values it is enough to multiply the number of possible units to acquire - in each of the points - by their respective price and then add them; This can be done at any point in the price line.
