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3 years ago

In using the net present value method, only projects with a zero or positive net present value are acceptable because:

Business

1 answer:

Ivahew [28]3 years ago

6 0

Answer:

Option A

Explanation:

When you use a net present value method you are discounting the estimated cash flows of your project applying an interest rate that is related to your cost of capital. So, if your projects discounted cash flows are greater than zero it means that your project profitability is greater than your alterative project.

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Brews 4 U is a local chain of coffee shops. Managers are interested in the costs of the stores and believe that the costs can be

Sergeeva-Olga [200]

Answer a) The letter b is best described as the estimate of the cost for an additional customer visit.

Answer b) The letter y is best described as the observed store cost for a given month.

Answer c) The letter x is best described as observed customer visit for a given month.

Answer d) The estimated cost for 370 customer visits is

Y = a + bx

a =$ 687.65 b = $ 7.59 x = 370 customer visits

Y = $ 687.65 + ($ 7.59 * 370 customer visit) = $ 687.65 + $ 2,808.3 = $ 3,495.95

Answer e) The percent of total variance that can be explained by regression equation is R2 = 0.79754 or 79.754%

8 0

4 years ago

The Busby Corporation had a share price at the start of the year of $26.20, paid a dividend of $0.56 at the end of the year, and

Westkost [7]

Answer:

D) 13%

Explanation:

Calculation for the percentage that is closest to the rate of return of investments

First step is to find the balance amount of the share price using this formula

Share price =(End of the year Share price + End of the year dividend)-Start of the year Share price

Let plug in the formula

Share price =($29.00+$0.56)-$26.20

Share price =$29.56-$26.20

Share price =$3.36

Second step is to find the rate of return of investments

Using this formula

Rate of return of investments= Share price/Start of the year Share price

Rate of return of investments

Let plug in the formula

Rate of return of investments=$3.36/$26.20

Rate of return of investments=0.13*100

Rate of return of investments=13%

Therefore the percentage that is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this perio will be 13%

4 0

3 years ago

Rent received Rs. 10,000/-

ale4655 [162]

Answer:

Okay, but where is the question or it's free points?

5 0

3 years ago

Read 2 more answers

Fact Pattern: Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales tot

sasho [114]

Answer: The accounting for customer food checks by the supervisor.

An unfitting classification of responsibilities existed because the supervisor was accountable for accounting for customer food checks and depositing acknowledgment and had the quality to set POS totals .

Therefore, the correct option is (a)

3 0

3 years ago

Mills Corporation acquired as an investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holdi

Sholpan [36]

Answer:

Please see solution below.

Explanation:

July 1, 2021

Dr Investment in bonds $225,000,000

Dr Premium on investment in bonds $25,000,000

Cr Cash $250,000,000

December 31, 2021

Dr Cash $18,000,000

Cr Interest revenue $15,000,000

Cr Premium on investments in bonds

$3,000,000

Investment in bonds. $225,000,000

Premium on investment in bonds $22,000,000

January 2, 2022

Dr. Cash $266,000,000

Cr Investment in bonds $225,000,000

Cr Premium on investment in bonds $22,000,000

Cr Gain on sale of investments $19,000,000

Workings:

Effective interest rate on first coupon received = [ $225,000,000 × 8%] - [ $250,000,000 × 6%]

= $18,000,000 - $15,000,000

= $3,000,000

Premium on investment in bonds = $25,000,000 - $3,000,000

= $22,000,000

8 0

3 years ago