Answer:
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
Explanation:
When calculating NPV the cash inflows and cash outflows arising at the duration of the life are discounted at WACC. Generally, present value of outflow is same as actual as no discounting is done, as that occurs at the initial time of the project.
Cash inflows arising at year end are discounted.
When, WACC is lower The present value of inflows is lower in comparison to higher WACC.
Therefore, there is lower NPV with lower WACC.
Thus, Statement b. is correct.
b. The lower the WACC used to calculate it, the lower the calculated NPV will be
Answer:
B. $15
Explanation:
Selling Price$60
Total Variable cost = Direct materials+Direct manufacturing labor+Variable manufacturing overhead
Total Variable cost = 35+10+4
Total Variable cost = 45
Throughput Margin = Sales price - Total Variable cost
Throughput Margin = 60-45
Throughput Margin = $15
Answer:
$18,250
Explanation:
In this question, we are asked to calculate the net operating income for a division of a firm.
We proceed as follows;
Turnover=Sales/Average operating assets
Average operating assets=(730,000/2)=$365000
Return on investment=net operating income/Average operating assets
Hence Average operating assets=($365000*5%)
which is equal to
=$18250.
Answer: The correct answer is "d) The accounts payable manager issues purchase orders.".
Explanation: A member of a company cannot charge with 2 functions of authorization and maintenance of related records, that is to say it is incompatible because it should not have the possibility of committing errors or hiding frauds, in that case it would cause a weakness, that is why the authorization and the Maintenance of related records must be separate functions.