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3 years ago

You are considering two independent projects that have differing requirements.

Business

1 answer:

Ugo [173]3 years ago

4 0

Answer:

I will accept Project "B."

Explanation:

Though, Project B has a higher required Return on Investment ROI which is 13.5% but has a progressive increasing cash flow of Project B has an initial cost of $70,000 and cash flows of $15,000, $18,000, and $41,000 for Years 1 to 3, respectively.

Analysis of the Cash Flow: 

$18,000.00 - $15,000.00 = $3,000.00

$41,000.00 - $18000.00 = $23,000.00.

∴ with Initial Outlay of $70,000.00

$3,000.00 + $23,000.00 = $26,000.00

while

Project A has a retrogressive trend of cash flow of $21,000.00

∴$49,000.00 - $21,000.00 = $28,000.00

$28,000.00 - $12,000.00 = $16,000.00

Therefore comparing the two figures from Project A & B respectively:

Project A = $16,000.00

Project B = $26,000.00

It shows a deficit of $10,000.00 for Project B & surplus of $10,000.00 for Project A in the 3 years of required ROI.

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A company's fixed operating costs are $420,000, its variable costs are $3.20 per unit, and the product's sales price is $4.65. W

Hatshy [7]

Answer: The volume of sales that will result in a break-even point is 289,655 units

Explanation: For any organization or company to break-even means its total costs is just the same as its total revenue. This means no profit, and no loss either. Or better still, profit/loss equals zero.

The equation to determine the profit or otherwise of an organization is given as Revenue minus Cost. That is, the sales figure should exceed the cost of production, and the excess would be the profit. If on the other hand the cost of production exceeds the sales figure, then the equation would result in a negative figure which simply means a loss has been recorded.

In the question above, the costs have been given as;

Fixed cost = 420000

Variable cost = 3.2y

Total cost = 420000 + 3.2y

Where y is the number of units produced.

Also the revenue has been given as 4.65y

That is, sales price multiplied by number of units produced/sold

The profit is given as revenue minus cost while the break-even point is given as revenue equals cost, that is;

420000 + 3.2y = 4.65y

Collect like terms and you have;

420000 = 4.65y - 3.2y

420000 = 1.45y

Divide both sides by 1.45

289655.172 = y

y ≈ 289,655

Therefore the sales volume that will result in a break even point is 289,655 units

7 0

3 years ago

An agreement between Jim and his 18-year-old daughter, Betty, provides that he will give her $25,000 if she does not marry until

Mariulka [41]

Answer:

No, Jim is not correct.

Explanation:

Betty will win this case.

Generally, the law encourages marriage as its policy. If there is any contract that prevent or restrict marriage in whatever way, such contract would be considered null and void because it is against the public policy.

Despite the above, contracts will be generally considered valid when they place reasonable restrictions on marriage. In this question, the restriction placed on Betty that she should get married until after her 22nd birthday is reasonable and has to be considered to be valid. Based on this, Betty has to be paid the $25,000 as laid down in the binding contract between the two parties.

Therefore, Jim is not correct.

4 0

3 years ago

A firm has a tax burden of 0.9,a leverage ratio of 1.1, an interest burden of 0.6, and a return-on-sales ratio of 13%. The firm

Afina-wow [57]

Answer:

the firm's ROE is 20%

Explanation:

The tax burden is 0.9

The interest burden is 0.6

The return on sales margin is 13%

The turnover ratio is 2.62

The leverage ratio is 1.1

Calculate the ROE

ROE = 0.9 * 0.6 * 0.13 * 2.62 * 1.1

=0.2 or 20%

4 0

3 years ago

A. compute the basic earnings per share b. compute the diluted earnings per share

Nookie1986 [14]

It is compute the dilutes earnings per share. I think it’s B.

8 0

2 years ago

Sam’s Appliance Outlet has variable expenses of 40% of sales. The manager reported monthly fixed expenses of $270,000. The month

solong [7]

Answer:

$125,000

Explanation:

total sales = ?S

variable expenses = S x 40%

fixed costs = $270,000

operating income = $75,000

S - 0.4S - $270,000 = $75,000

0.6S = $75,000 + $270,000 = $345,000

S = $345,000 / 0.6 = $575,000

total sales = $575,000

margin of safety = total sales - break even point

break even point = $270,000 / 0.6 = $450,000

margin of safety = $575,000 - $450,000 = $125,000

The margin of safety represents how much can a company's sales can fall until it reaches the break even point.

7 0

3 years ago