Answer:
Activity expected duration = 2.333
Explanation:
Given:
Optimistic (a) = 1
Most likely (m) = 2
Pessimistic (b) = 5
Activity’s expected duration = ?
Computation of Activity expected duration:
![Activity\ expected\ duration = \frac{(a + 4m + b)}{6}](https://tex.z-dn.net/?f=Activity%5C%20expected%5C%20duration%20%3D%20%20%5Cfrac%7B%28a%20%2B%204m%20%2B%20b%29%7D%7B6%7D)
Activity expected duration = [1 + 4(2) + 5] / 6
Activity expected duration = [1 + 8 + 5] / 6
Activity expected duration = [14] / 6
Activity expected duration = 2.333
Answer: Wages account debit
Wages payable account credit
Explanation:
Sdjusting entries are simply referred to as the journal entries that are made when the accounting period ends such that there is allocation of the income and the expenditure incurred by the economic agent to the period in which the income and the expenditure occurred.
In this case, the adjusting journal entry passed by the accountant will be to debit the wages account by $1500 and then credit the wages payable account by $1500.
Answer:
Cost of equity = 14.43%
Explanation:
Weigheted Average cost of capital is computed using the formula below:
WACC = (Wd×Kd) + (We×Ke)
Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%
Wd =Proportion of debt= 40%
We = proportion of equity = 60%
Ke= cost of equity.
let the cost of equity be "y"
WACC = 11.54
11.54 = (40%× 7.2%) + (60% × y)
0.1154 = 0.0288 + 0.6y
0.1154 - 0.0288 = 0.6y
y =(0.1154 - 0.0288)/0.6
y = 0.1443 × 100
y =14.43%
Cost of equity = 14.43%
Answer:
NPV = 138,347.55
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>
We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:
<em>Prevent Value of operating cash flow</em>
PV =A× (1- (1+r)^(-n))/r
A- 23,900, r - 12%, n- 5
PV = $23,900 × (1- (1.12)^(-5))/0.05
=206,769.963
<em>PV of Working Capital recouped</em>
PV = 5600× 1.12^(-5)
= 3,177.59
NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow
NPV = (66,000) + (5600) + 3,177.59 + 206,769.96
NPV = 138,347.55
Answer:
A vertical analysis income statement uses Sales as a base and makes everything else a percentage of sales.
Vertical Analysis Statement
Amount Percentage
Sales $1,500,000 100%
Cost of Goods sold ($900,000) 60%
Gross Profit $600,000 40%
Cost of Goods sold percentage = 900,000 / 1,500,000
= 60%
Gross Profit percentage = 600,000 / 1,500,000
= 40%