Answer:
2018: 8 months
Depreciation= $916,67
2019: full year
Depreciation= $1375
Explanation:
Giving the following information:
Taco Hut purchased equipment on May 1, 2018.
Price: $15,000.
Residual value: $4,000
Useful life: 8 year
We need to calculate the depreciation for 2018 and 2019 using straight-line method:
Depreciation= (purchase price- residual value)/useful life
Depreciation= (15000-4000)/8= $1375
2018: 8 months
Depreciation=(1375/12)*8= 916,67
2019: full year
Depreciation= $1375
Answer:
Negative NPV.
Explanation:
present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.
Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.
Answer:
The correct answer is option C.
Explanation:
The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.
The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.
The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.
The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.
<span>The incentive for the employees in this scenario is the money. It is because the employees refuses to work overtime because of the fact that they are not going to receive anything from the company and after the managers decided to pay the staff with the bonus, every hour that they stayed up late, they started to work and complete the required job that is needed to be done, with that, the bonus given is money, which means the money is the incentive being provided to its staff.</span>
Answer:
Percentage total return is 12.64%
Dividend yield is 2.19% or 2%
Explanation:
Computing the percentage total return by using the formula:
Percentage total return = Gain or loss / Initial price × 100
where
Gain or loss is determined as:
Gain or loss = Ending Share price - Initial price
= $98 - $87
= $11 (it is a gain)
Initial price is $87
Putting the values above:
Percentage total return = $11 / $87 × 100
= 12.64%
Computing the dividend yield by using the formula:
Dividend yield = Annual dividend per share / Stock's price per share
where
Annual dividend per share is $2.15
Stock's price per share is $98
Putting the values above:
Dividend yield = $2.15 / $98
= 2.19% or 2%
