Answer:
The right solution is Option a (-$6,678).
Explanation:
Given that:
Up-front cost,
= $250,000
Expected cash flows,
= $110,000
Assuming cost of capital,
= 12%
Now,
The expected net present value will be:
= 
= 
= 
($)
Answer:
The capital deficiency of $33,000 will be shared between Turner and Roth in the proportion of their income and loss sharing ratio of 2:3.
Turner will need to further contribute $13,200 ($33,000 x 2/5)
Roth will contribute $19,800 ($33,000 x 3/5)
Lowe is a limited partner and will not contribute to the capital deficiency.
Explanation:
Lowe as a limited partner is a part-owner of the partnership but his liability for the firm's debts cannot exceed $32,000 being the amount that has invested in the company. As a silent partner, Lowe does not participate in the management of the company.
The Limited Partnership of Turner, Roth, and Lowe is a partnership consisting of general partner(s) like Turner and Roth, who manage the business and have unlimited personal liabilities for the debts and obligations of the Limited Partnership and Lowe as the limited partner. Whereas, Turner and Roth are in charge of the management of the company, Lowe is a silent partner.
Answer: Variable cost pricing
Explanation:
Marianne wants to sell in Mexico by setting the selling price in such a way that she adds the total variable cost to the markup. This way she would meet her cost and gain some level of profit.
Answer:
The operating cash flow is $403.
Explanation:
Since the firm does not have interest expenses, proceed as follows:
Earning before interest and tax (EBIT) = Sales - Costs - Depreciation
= $1,240 - $690 - $130
Earning before interest and tax (EBIT) = $420
Taxes paid = EBIT × Tax rate = $420 × 35% = $147
Operating cash flow = EBIT + Depreciation -Taxes paid
= $420 + $130 - $147
Operating cash flow = $403
Therefore, the operating cash flow is $403.
Answer:
B) The beekeeper is a first-tier supplier of the local restaurant.
Explanation:
The first-tier supplier is one that provides parts and materials directly to a manufacturer of goods. In this case the beekeeper is the first-tier supplier and he supplies the honey in quart jars to the baker who makes the confections.
