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k0ka [10]
3 years ago
13

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:

Business
1 answer:
Vinil7 [7]3 years ago
7 0

Answer:

since the positive cash flows are blocked for one year, you have to adjust your cash flows:

year                 cash flow

0                      -$160,000

1                        $0

2                       $348,400

3                       $416,000

4                       $306,800

5                       $260,000

discount rate = 7%

using a financial calculator:

NPV = -$160,000 + $1,063,318.63 = $903,318.63

IRR  = 102.94%

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Asymmetric information occurs when A. everyone has the same information. B. people engaging in a transaction are uncertain about
melisa1 [442]

Answer:

Option (D) is correct.

Explanation:

Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.

Asymmetric information will result in two problems are as follows:

(i) Adverse selection

(ii) Moral hazard

8 0
3 years ago
The Outlet Mall has a cost of equity of 16.8%, a pretax cost of debt of 8.1%, and a return on assets of 14.5%. Ignore taxes. Wha
krok68 [10]

Answer:

0.36

Explanation:

Cost of equity of 16.8%,

Pretax cost of debt of 8.1%

Return on assets of 14.5%

As per NN proposition: Cost of equity = Return on asset + D/E ratio (Return on asset-Cost of debt)

0.168 = 0.145 + D/E (0.145 - 0.082)

0.168 - 0.145 = D/E (0.064)

0.023 =  D/E (0.064)

D/E = 0.023/0.064

D/E = 0.359375

D/E = 0.36

Thus, the debt-equity ratio is 0.36

8 0
3 years ago
When shipments from a number of sources are combined into one larger shipment going to a single location, the operation is known
Anit [1.1K]

When shipments from a number of sources are combined into one larger shipment going to a single location, the operation is known as warehouse consolidation.

Product Shipments means, for each Performance Period, the quantitative and measurable number of units of a particular Product shipped during that Performance Period.

Cargo is a word used as a noun to describe goods being transported. Shipping is a word that is used both as a noun and as a verb. When used as a verb, it includes the word ship and thus refers to the actual transportation of goods, not necessarily by sea.

Total shipments represent the quantity shipped by regular shippers or the quantity paid by regular shippers during the base period, whichever is greater.

Learn more about shipments here:brainly.com/question/12887070

#SPJ4

7 0
1 year ago
Assume that total costs assigned to the setup activity cost pool in June are $60,000 and 50 setups were completed in June. Furth
Zolol [24]

Answer:

Allocated cost= $14,400

Explanation:

<u>First, we need to calculate the allocation rate for setup:</u>

<u></u>

Cost allocation rate= total estimated costs for the period/ total amount of allocation base

Cost allocation rate= 60,000 / 50

Cost allocation rate= $1,200 per setup

<u>Now, we can allocate setup cost to G10:</u>

Allocated cost= 1,200*12

Allocated cost= $14,400

6 0
3 years ago
2. Are there any true communist economies today? Which economies call themselves communist, and
Oduvanchick [21]

Answer:People's Republic of China

Democratic People's Republic of Korea (North Korea)

Socialist Republic of Vietnam

Lao People's Democratic Republic (Laos)

Republic of Cuba

Explanation:

7 0
4 years ago
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