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Evgen [1.6K]
2 years ago
7

You are considering opening a new plant.

Business
1 answer:
kotykmax [81]2 years ago
6 0

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

2. Calculation for IRR

IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

IRR = 30%

Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

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26. Which of the following best describes an entrepreneur? A) a person who forms and operates a business B) a person who invests
scoundrel [369]

Answer:

A) a person who forms and operates a business

Explanation:

An entrepreneur is a person who forms and operates a business. An entrepreneur is one of the factors of production. Other factors include land, labour and capital.

An entrepreneur takes up the financial risk of a business.

An entrepreneur earns profit or loss.

A shareholder is a person who invests in an existing business

A bondholder is a person who lends capital to a new business

I hope my answer helps you.

3 0
2 years ago
Money aggregates
Allushta [10]

Answer:

Explanation:

* M1 = currency in circulation + checking deposits

* M2= M1 + short term money deposits + 24 hour market funds

a) Deborah CD - M2

b) Van - M1 and M2

c) Carlos savings account - M2

3 0
3 years ago
3 Is there any way to enjoy some small daily purchases and also make wise, long-term decisions when it
White raven [17]

Answer:

The answer is below

Explanation:

To be able to enjoy some small daily purchases and also make wise, long-term decisions when it comes to spending and saving, you will need to take the following steps:

1. Ensure you have a plan: this will describe your short term and long term goals about your finances

2. You can start with an 80%/20% rule. Here, you spend 80% of your income and save 20%. You can increase that later to 70/30%

3. After sometimes, invest 80% of your savings and keep 20%

4. Use credit when only necessary

5. Enjoy yourself sometimes by spending the money for yourself adequately.

6. Keep learning how to maximize your income.

5 0
2 years ago
Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the goods sold was $24,500. Abbey C
larisa [96]

Answer:

b. $7,972

Explanation:

The computation of the amount of the gross profit earned is shown below:

But before that we have to do the following calculations

Net sales = $35,000 - $3,600 = $31,400

Merchandise cost = $24,500 - $1,700 = $22,800

Discount allowed= $31400 × 2% = $628

Now

Gross profit earned  is

= $31,400 - $22,800 - $628

= $7,972

5 0
3 years ago
Wilturner Company incurs $82,000 of labor related directly to the product in the Assembly Department, $31,000 of labor related t
tensa zangetsu [6.8K]

Answer:

Debit Work in Process Inventory $113,000;

Debit Factory Overhead $18,000.

Explanation:

$82,000 of direct labor related is associated with assembly department.

and $31,000 of labor not directly related to the product but related to the Assembly Department as a whole . Therefore its a indirect cost means overhead

$18,000 of labor services this cost is not associated with the product, but indirectly incurred in making material to the final product. hence this cost is also part of indirect cost.

7 0
3 years ago
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