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Nikitich [7]
3 years ago
8

Moped, Inc. purchased machinery at a cost of $44,000 on January 1, 2017. The expected useful life is 5 years and the asset is ex

pected to have salvage value of $4,000. Moped depreciates its assets using the double-declining balance method. What is the firm's depreciation expense for the year ended December 31, 2017?
Business
1 answer:
AysviL [449]3 years ago
3 0

Answer:

Annual depreciation= $16,000

Explanation:

Giving the following information:

Purchase price= $44,000

Useful life= 5 years

Salvage value= $4,000

<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>

<u></u>

Annual depreciation= 2*[(book value)/estimated life (years)]

Annual depreciation= 2*[(44,000 - 4,000) / 5]

Annual depreciation= 16,000

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Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash f
zepelin [54]

Answer:

44%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

Internal rate of return can be determined using a financial calculator

Cash flow in year 0 = $-30 million

Cash flow in year 1 = $13 million

Cash flow in year 2 = $23 million

Cash flow in year 3 = $29 million

IRR = 44%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

6 0
3 years ago
You pay $75 for a ticket to a Drake concert. You think the ticket is worth $100. The night before the concert your friend offers
lukranit [14]

Answer: $80

Explanation:

The opportunity cost is regarded as the real cost of the alternative that was left or forgone.

Based on the information given in the question, the opportunity cost is the free ticket to a Post Malone concert that is worth $80 which was given to me by my friend.

Therefore, the correct option is E.

5 0
3 years ago
Rex's doughnuts can produce only 100 doughnuts a day. the variable cost incurred per unit is $2 and fixed costs incurred per day
vladimir1956 [14]
The total cost that is incurred by producing 100 doughnuts is equal to the sum of the variable cost and the fixed cost. The total variable cost is,
    total variable cost = ($2/doughnut)(100 doughnuts) = $200

The total cost is,
   Total cost = total variable cost + total fixed cost
     TC = $200 + $500 = $700

Equating the cost and the revenue,
     TC = TR
     $700 = (100)(x)

The value of x from the equation is $7.

ANSWER: $7. 
3 0
3 years ago
Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that_
Diano4ka-milaya [45]

The correct answer is B) traditional.

Aflak Corporation, an Omani firm, is currently planning goods market in India. Aflak Corporation will most likely discover that traditional beliefs and values are more open to change in India.

When a multinational company is planning on initiating operations in another country, it has to be very sensible of the traditional values of that country. The company is getting into a new market and people could have different belief systems, different culture, traditions, and customs, that need to be carefully assessed by the multinational company if they are about to be successful in the new country.

This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.

8 0
3 years ago
Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $3 per share. I
Vera_Pavlovna [14]

Answer:

Correct option is B.

<u> The weight of debt for WACC purposes is 23.08%</u>

Explanation:

Amount of debt = 2 million x 0.90

 = 1.80 million

Amount of equity = 2 million x 3

= 6 million

Weight of debt = amount of debt/ (amount of debt + amount of equity)

  = 1.80 million / ( 6 million + 1.80 million)

  =23.08%

8 0
3 years ago
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