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Radda [10]
2 years ago
9

Question 3: Economic value-added (EVA) Net operating profit before taxes is $1,800. Total assets (invested capital) are $8,500,

and current liabilities are $1,100. The weighted average cost of capital (WACC) is 11%. The tax rate is 20%. Compute the economic value added (EVA). NOPAT = $ Incorrect: Your answer is incorrect. EVA = $ Incorrect: Your answer is incorrect. (if you get a negative number, enter it with a minus sign, i.e., -100 not ($100))
Business
1 answer:
posledela2 years ago
7 0

Answer:

- $454

Explanation:

Net Operating Profit after tax = Net operating profit before tax - tax rate

                                                  = $1,800 - 20%

                                                  = $360

Economic Value Added:

= Net Operating Profit after tax - (Capital Invested × Weighted average cost of capital )

= $360 - [($8,500 - $1,100) × 11%]

= $360 - ($7,400 × 11%)

= $360 - $814

= - $454

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Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using Foursquare
vazorg [7]

Answer:

c. Mobile Retailing.

Explanation:

Using a coupon on your cell phone when checking out at the Hard Rock Café, or checking in to a retail location using Foursquare mobile app is an example of Mobile Retailing.

Mobile retailing can be defined as the process of buying or shopping for goods and services through the internet by using a smartphone, mobile device or tablets. It is one of the convenient ways, potential customers use to engage in e-commerce.

4 0
3 years ago
Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t
ozzi

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each \frac{Maturity}{(1 + rate)^{time} } = PV  

cash flow and then add them together

\frac{20,000}{(1 + 0.08)^{1} } = PV  

\frac{40,000}{(1 + 0.08)^{2} } = PV  

\frac{60,000}{(1 + 0.08)^{3} } = PV  

Year Nominal     Present Value

1 20000  18, 518

2 40000 34,293

3 60000 47,630

TOTAL            100,441

5 0
2 years ago
Organizational change can best be defined as​ ________.
Zigmanuir [339]
Organizational change can best be defined as​ <span>any alteration of​ people, structure, or technology</span>.

When an organization makes a change it is known as organizational change. When changing an organization you are making a change to the way the company runs. Changing any type of structure, technology or moving around how people work can make a change to the organization. 
5 0
3 years ago
In 2020, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile
JulsSmile [24]

Answer: $2722

Explanation:

Ensley's automobile deduction under the actual cost method is calculated below:

Gas and oil = $1800

Add: Insurance = $980

Add: Repairs = $360

Add: Licenses and registration fees = $50

Total Expenses = $3190

We then calculate the business usage which will be:

= 80% of $3190

= 0.8 × $3190

= $2552

We then add the cost of business parking and tolls, then the total deduction will be:

= $2552 + $170

= $2722

4 0
2 years ago
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year.
34kurt

Answer:

b. 6 years.

Explanation:

The formula and the calculation of the payback period is presented below:

= Initial investment ÷ Net cash flow

where,  

Initial investment is $263,000

And, the net cash flow = After-tax net income + depreciation expenses

= $2,000 + $1,500

= $3,500

Now placed these values in the formula above, so the period would be equal to

= ($21,000) ÷ ($3,500)

= 6 years

8 0
3 years ago
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