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2 years ago

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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Assume Clarks cannot estimate the standalone selling price of a pair of SunBoots sold without a coupon. Prepare a journal entry

kicyunya [14]

Answer and Explanation:

The journal entry is shown below:

Cash Dr (1,000 × $65) $65,000

To Sales revenue $59,000

To Deferred Revenue -Discount coupon $6,000

(1,000 × $100 × 30% × 20%)

(Being the sales revenue is recorded)

here the cash is debited as it increased the assets and credited the sales revenue and deferred revenue as it increased the revenue and liabilities

7 0

2 years ago

Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors

wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

8 0

3 years ago

Which section of the business plan contains information about the financial history of the company? A. Financial Analysis B. Fun

Romashka [77]

I believe it is A if not then B hope this helps

6 0

2 years ago

Read 2 more answers

Sue now has $490. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Alina [70]

Answer:

c.$941.10

Explanation:

Calculation for How much would she have after 8 years

Using this formula

FV = PV(1+i)^n

FV represent future value

PV represent present value

i represent interest rate

n represent number of periods

Let plug in the formula

FV = 490(1 + .085)^8

FV= $941.10

Therefore How much would she have after 8 years will be $941.10

3 0

2 years ago

Mary is a shareholder in CarrollCo, a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her

Troyanec [42]

Answer:

AAA = (8000)

STOCK BALANCE = 0

AEP = 2000

Explanation:

-----------------AAA-------- stock basis---------AEP

Beg. Bal--- 2000 - - - - 10,000 - - - - - - 6,000

Distribution (2000) - - - - (2000) - - - - - (4000)

Balance - - - 0 - - - - - - - 8000 - - - - - - 2000

LTCG - - - 2000 - - - - - 2000 - - - - - - - - 0

Balance - -2000 - - - - - 10,000 - - - - - - 2,000

Loss - - - (10000) - - - - (10000) - - - - - - - 0

Ending - - (8000) - - - - - 0 - - - - - - - - - 2000

ENDING BALANCE :

AAA = (8000)

STOCK BASIS = 0

AEP = 2000

Beg. bal = beginning balance

LTCG = Long term capital gain

3 0

3 years ago