Answer:
170,146
Explanation:
$250,000 / (1.08)5= 170,146
Answer:
The discount rate for this project is 5%.
Explanation:
The discount rate for the new project will be the required rate of return or the cost of equity that will be used to discount the cash flows from the project to calculate its Net present value. Using the CAPM, we can calculate the required rate of return (r) as:
r = rRF + beta * rpM
Where,
- rRF is the risk free rate
- beta is the stock's beta or measure of risk
- rpM is the market risk premium
r = 2% + 0.5 * 6% = 0.05 or 5%
Answer:
1. are consistent with decentralization.
2. use the expertise of managers in weighing the costs and benefits of the transfer.
3. preserve the autonomy of the divisions.
Explanation:
A negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.
Negotiated transfer prices has the following advantages;
1. Negotiated transfer prices are consistent with decentralization.
2. Use the expertise of managers in weighing the costs and benefits of the transfer.
3. They preserve the autonomy of the divisions.
Answer:
TRUMP MAKE AMERICA GREAT AGAIN !!!!!!!!!
Explanation:
Answer:
A) total cost = (200 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $12,000
average total cost per unit = $12,000 / 2,000 units = $6 per unit
B) new total cost = (100 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $2,000 + $4,000 + $4,000 = $10,000
average total cost per unit = $10,000 / 3,000 units = $3.33 per unit
C) When process innovation occurs, total productivity and efficiency increase, decreasing the average cost per unit. In this case the total cos decrease, but even if total costs do not decrease, higher efficiency and productivity can be achieved by production more units at the same total costs. Process innovations, usually related to new technologies, are responsible for the greatest increases in productivity and efficiency which result in higher economic output and growth.
