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Strike441 [17]
3 years ago
13

Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in rais

ing this capital, Cute Camel will incur an additional flotation cost of 6%. At the end of the year, the project is expected to produce a cash inflow of $700,000. The rate of return that Cute Camel expects to earn on the project after its flotation costs are taken into account is
Business
1 answer:
vfiekz [6]3 years ago
8 0

Answer:

The correct answer is "32.076%".

Explanation:

Given:

Initial investment,

= $500,000

Cash inflows,

= $500,000

The floatation cost will be:

= 500,000\times 6 \ percent

= 30,000 ($)

The total cost will be:

= Initial \ investment+Floatation \ cost

= 500000+30000

= 530000

hence,

The rate of return will be:

= \frac{Inflows}{Cost} -1

= \frac{700000}{530000} -1

= \frac{700000-530000}{530000}

= 0.32076

= 32.076 (%)

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A. Preparing for and introducing job analysis

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The job analysis refers to a process in which the information related job responsibilities is gathered. The first step of this process involves planning the analysis and establishing the goal of it. Then, the next step is to prepare the analysis which involves defining the jobs that will be studied and the employees that will be included. Also, the job descriptions that are available are reviewed. According to this, the answer is that Max's next step should be preparing for and introducing job analysis.

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3 years ago
You are considering two independent projects. Project A has an initial cost of $125,000 and cash inflows of $46,000, $79,000, an
Harrizon [31]

Answer:

b. Accept Project A and reject Project B.

Explanation:

To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.

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NPV = -\$125,000 +\frac{\$46,000}{(1+0.16)} +\frac{\$79,000}{(1+0.16)^2} +\frac{\$51,000}{(1+0.16)^3}\\NPV =\$6,038.58

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Name two advantages offered by a credit union.
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Using multiple cost drivers on a flexible budget report will generally make the budget accurate and effective.

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Learn more about flexible budget performance report at:

brainly.com/question/27201970

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