Answer:
NPV = $20,040.35
Explanation
The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
Annual net cash inflow = Savings - Technician cost = 61,427- 20,000
= $41,427
PV of Cash flow= $41,427 × (1-(1.12^(-5))/0.12= 149,335.06
PV of salvage value = 1.12^(-5)×$6,641 = 3768.281749
NPV = 149,335.06 + 3,768.281 -133,063= 20,040.35
Answer:
1144.95$
Explanation:
375.40 was given every week so multiply by 3 and I got 1126.20.. now annually is the key work and annually means per month so I divide 22500 by 12 and got 18.75. last, I added 18.75 a d 1126.95 and got 1144.95!! Hoped explained well!!
Answer: Antitrust law
Explanation:
The Clayton Antitrust Act of 1914, was a part of the United States antitrust law with the aim of adding further substance to the United States antitrust law regime.
The Clayton Act was to prevent anticompetitive practices. It was enacted in 1914 with the objective of strengthening Sherman Antitrust Act. When Sherman Act was enacted in 1890, the regulators realized that that the act had some weaknesses which made it impossible to prevent anti-competitive practices in businesses so the Clayton Act addressed the issue.
Answer (A):
Need more data to select the better adviser
<u>Explanation: </u>
Adviser A averaged 19% return on the investment which is more than that of Adviser B who averaged 16% return on investment. However, adviser A has a beta of 1.5 which is also greater than that of Adviser B who has a beta of 1. This means that adviser A made a more riskier investment and hence a higher average return on investment. We need more data to tell which adviser performed better in relation to each other.
Answer (B):
Investment Adviser B
<u>Explanation:</u>
= T-bill rate = 6%
= Market return = 14%
= Market risk premium = 14% - 6% = 8%
= Average Return by Adviser A =19%
= Beta of Adviser A = 1.5
= Average Return by Adviser B =16%
= Beta of Adviser B = 1
CAPM Equation is 
<u>For Adviser A</u>
= 6 + 1.5 (14 - 6) = 18%
The expected average return for the investment is 18% which means that Adviser A over performed the market by 1 %
<u>For Adviser B</u>
= 6 + 1 (14 - 6) = 14%
The expected average return for the investment is 14% which means that the Adviser B over performed the market by 2 %
Clearly, Adviser B performed better than Adviser A.
Answer (C):
Adviser B
<u>Explanation:</u>
<u />
In this part, the 
and 
All else remains the same
We make similar calculation as in part B
Answer: b. $106,700
Explanation:
The marketing and administrative expense budget is based on budgeted unit sales, which are 5,500 units for June.
The variable marketing and administrative expense is $1.00 per unit. Which is 5,500 units x $1.00 = $5,500.
The budgeted fixed marketing and administrative expense is $101,200.
To get the cash disbursements for marketing and administrative expenses on the June marketing and administrative expense budget should be Variable costs plus fixed costs.
= $5,500 + $101,200
= $106, 700
