Answer:
Tv = 1772
Remote = 144
Installation = 144
Explanation:
To calculate stand-alone selling price we need to calculate the percentage of Fair market value first and then allocate the Entire package price in the products according to the percentage of fair market value.
Percentage of the fair market value of each product
Product Fair Value Percentage
TV $1830 86%
Remote $140 7%
Installation $140 7%
Total $2,110 100%
Stand-alone selling price
Product % of fair market value Stand-alone selling price
TV 86% 1772
Remote 7% 144
Installation 7% 144
Total 100% 2,060
Where is the question? Thanks.
Answer:
The correct answer is D. Is the return investors require on the total assets of the firm.
Explanation:
The Weighted Average Capital Cost (WACC) is a financial measure, which has the purpose of encompassing in a single figure expressed in percentage terms, the cost of the different sources of financing that a company will use to fund a specific project.
To calculate the WACC, it is necessary to know the amounts, interest rates and tax effects of each of the selected sources of financing, so it is worth taking the time to analyze different combinations of these sources and take the one that provides the lower figure
.
Comparatively, without going into the detail of the project evaluation, "the WACC must be less than the profitability of the project to be funded" or expressed in another order, "the project performance must be greater than the WACC."
Answer:
d. $5,204
Explanation:
Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12
= $61,600 - $8,500 * 8% * 6/12
= $53,100 * 8% * 6/12
= $2,124
Depreciation Expenses up to December 31, 2021
= Fair value of equipment / Useful life * 6/12
= ($61,600 / 10) *6/12
= $6,160 * 6/12
= $3,080
Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be
= Interest expenses + Depreciation Expenses
= $2,124 + $3,080
= $5,204
