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Cloud [144]
3 years ago
7

1. Jamestown Ltd. currently produces boat sails and is considering expanding its operations to include awnings for homes and tra

vel trailers. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land ten years ago at a cost of $250,000. Today, the land is valued at $420,000. The grading and excavation work necessary to build on the land will cost $14,000. The company currently owns some unused equipment valued at $60,000. This equipment could be used for producing awnings if $5,000 is spent for equipment modifications. Other equipment costing $780,000 will also be required. What is the amount of the initial cash flow for this expansion project?
Business
1 answer:
worty [1.4K]3 years ago
3 0

Answer:

$1,285,000

Explanation:

Initial cash flow is the amount of money paid out or received at the start of a project or investment.

The initial cash flow for the project is calculated as = $425,000 + $15,000 + $60,000 + $5,000 + $780,000 = $1,285,000.

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When you take a multiple-choice test, you are relying on ________, a means of retrieving information out of your long-term memor
Colt1911 [192]

The answer is recognition.

<span>Recognition is one of the three processes of memory, the other two are encoding and storage. Recognition is the process of retrieving information from the past to use it in an actual situation.</span>

3 0
3 years ago
Read 2 more answers
In 2018, X Company sold 6,800 units of its only product for $36.10 each. Unit costs were as follows: Variable manufacturing $14.
Eddi Din [679]

Answer The correct answer is 8.317 units

Explanation:

Firstly, calculate the Total fixed costs= ($2.35+$2.63)*6800= $33.864 Fixed Manufacturing and Selling cost

Secondly, calculate the earnings before taxes 63.000/(1-tax rate) = 63.000(/1-0.39)= 103.278.69

Then, Calculate the Revenue less fixed cost  103.278.69+33.864=137.142,68

Then calculate the Variable margin that is equal to ( Price of sales per unit – Variable manufacturing – Variable selling) = (36.10-14.50-5.11)= 16.49

Finally divide the revenue less fixed cost on the variable margin (137.142,68/16.49) = 8316.72

                                     Units                        Price    Total

Revenue                             8,316.72                    36.10      300,233.54  

Fixed Manufacturing                                                  (15,980.00)

Variable manufacturing    8,316.72                    14.50      (120,592.42)

Fixed Selling                                                                    (17,884.00)

Variable Selling                 8,316.72                      5.11         (42,498.43)

Net Revenue                                                                     103,278.69  

Tax rate                                                                39%        (40,278.69)

Total                                                                            63,000.00  

7 0
3 years ago
For a levered firm, flotation costs should
KengaRu [80]

Answer:

The answer is option B. For a levered firm, flotation costs should <u>be spread over the life of a project, thereby reducing the cash flows for each year of the project.</u>

Explanation:

When a company’s securities are listed on a public exchange, there is a general saying that securities are floated on the exchange. That is how the name flotation costs came about.

Flotation is actually the costs  incurred by a company in issuing its securities to public.  it is also called issuance costs.

Examples of Flotation costs include charges paid to the investment bankers, lawyers, accountants, registration fees of the securities regulator and the exchange on which the issue is to be listed.

Flotation cost would vary based on several factors, such as company’s size, issue size, issue type (debt vs equity),

In summary, Flotation costs are the cost a company incurs to issue new stock making new equity cost more than existing ones.

Business analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.

It is based on this premise that i chose option B, which states that flotation costs be spread over the life of a project thereby reducing the cash flows for each year of the project at levered firms.

5 0
2 years ago
When a product spreads through the population, it is called the?
Fiesta28 [93]

The answer is diffusion of innovation. This type of theory or process has the aim of having to influence other people in regards with the ideas that they have formulated in which are new. These ideas are being spread out with the use of innovations.

7 0
3 years ago
Budgeted sales in Acer Corporation over the next four months are given below: Budgeted sales September October November December
AlekseyPX

Answer:

$161,400

Explanation:

<u>Cash collection calculation</u>

December cash sales ($160,000*30%) = $48,000  

<u>Credit sales</u>

December: (160000*70%*50%) =              $56,000

November: (180000*70%*30%) =              $37,800

October: (140,000*70%*20%) =                 <u>$19,600</u>

Total cash collections                                <u>$161,400</u>

7 0
2 years ago
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