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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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You are planning to hire a full-time electrician who will work 40 hours per week. If you plan on giving this new hire three week

Rzqust [24]

Answer:

1960hours

Explanation:

There are 52weeks in 12 months and the electrician is suppose to work 40hours each week. i.e

40hours x 52weeks = 2080hours

If the plan is to give the electrician a three weeks vacation as benefit, it means the electrician will not be working for

40hours x 3weeks = 120hours

Therefore the number of hours that the electrician will work for 12months will be equal to 2080 hours - 120hours = 1960hours

8 0

3 years ago

Read 2 more answers

A lump-sum purchase or basket purchase involves paying a single price for several assets as a group.

il63 [147K]

Answer:

TRUE

Explanation:

A basket purchase is the acquisition of a number of assets as a group, in a single purchase transaction. This is common when the basket purchase is lower than the price charged for individual assets.

7 0

3 years ago

Which of these is the most likely outcome of a financial crisis?

abruzzese [7]

More bankruptcies because if there is a crisis people are losing a lot of money and are more than likely filling for bankruptcies.

5 0

2 years ago

Read 2 more answers

Machinery purchased for $69,600 by Tamarisk Co. in 2016 was originally estimated to have a life of 8 years with a salvage value

8_murik_8 [283]

Answer and Explanation:

The journal entries are shown below:

a. No journal entry is required

b. Depreciation expense $4,756

To Accumulated depreciation-Machinery $4,756

(Being depreciation expense is recorded)

Here the depreciation expense is debited as it increased the expense and credited the accumulated depreciation as it decreased the assets

Working

Accumulated depreciation is

= ($69,600 - $4,640 ÷ 8 × 5)

= $40,600

Now Revised depreciation is

= ($69,600 - $40,600 - $5,220) ÷ 5

= $4,756

7 0

2 years ago

Which of the following is true about a sole proprietorship?

Alex73 [517]

The right answer for the question that is being asked and shown above is that: "d. A sole proprietorship has a life of its own apart from its owner." It is considered as the simplest business form where one can operate. It is not a legal entity in itself.

7 0

3 years ago