Answer:
The requirement is to calculate the present value of each option:
$ 11.26 million
$11.5 million
$ 12.52 million
Explanation:
The present value formula in excel is very useful in this case:
=-pv(rate,nper,pmt,fv)
rate is the 14% interest rate to be earned per year
nper is duration of the payment
pmt is the amount of payment expected per year
fv is the is the future worth of the payment which is unknown
Option 1:
=-pv(14%,20,1.7,0)=$ 11.26 million
Option 2:
The amount receivable today is the present value i.e $11.5 million
option 3:
=-pv(14%,20,1.4,0)=$9.27 million
total =amount received today+$ 9.27 million=$3.25 million+$ 9.27 millon=$ 12.52 million
Answer:
Explanation:
The journal entry is shown below:
Work in Process A/c - Assembly department A/c Dr $52,320
Work in Process A/c - Finishing department A/c Dr $41,440
To Manufacturing overhead A/c $93,760
(Being the overhead are allocated to the Assembly and Finishing Departments)
The allocation of the assembly department equals to
= Raw material × percentage of labor cost
= $32,700 × 160%
= $52,320
The allocation of the finishing department equals to
= (Factory labor cost - factory labor) × percentage of labor cost
= ($63,800 - $37,900) × 160%
= $25,900 × 160%
= $41,440
Answer: B. an increase in interest rates that decrease economic growth.
Explanation:
If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.
Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.
Answer:
-$30,250 favorable
Explanation:
labor efficiency variance = (standard quantity - actual quantity) x standard labor cost
- actual quantity = 7,700 hours
- standard quantity = 9.9 hours x 1,000 units = 9,900
- standard labor cost = $13.70
labor efficiency variance = (7,700 - 9,900) x $13.70 = -$30,250 favorable variance
the variance is favorable, because less hours were actually used than forecasted
<span>C.An increase in the number of stress and health concerns that result from working in a computer environment.</span>
