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3 years ago

You are considering opening a new plant.

Business

1 answer:

kotykmax [81]3 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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Bentley estimates manufacturing overhead of $3,251,600 for 2013 and will apply overhead to units produced based on 739,000 machi

saul85 [17]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated overhead= $3,251,600

Estimated machine-hours= 739,000

During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units.

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 3,251,600/739,000

Predetermined manufacturing overhead rate= $4.4 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4.4*734,000= $3,229,600

Finally, we can determine the total cost and unitary cost:

Total cost= 1,640,000 + 5,335,800 + 3,229,600= $10,205,400

Unitary cost= 10,205,400/2,190,000= $4.66 per unit

4 0

3 years ago

On January 2, 2017, Vaughn Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,1

crimeas [40]

Answer:

Dr Notes Receivable $10,100

Cr Discount on Notes Receivable$1,000

Cr Sales Revenue $9,100

Dr Cost of Goods Sold $5,460

Cr Inventory $5,460

Explanation

Vaughn Inc

Journal entry

January 2, 2017

Dr Notes Receivable $10,100

Cr Discount on Notes Receivable

$10,100-$9,100) $1,000

Cr Sales Revenue $9,100

Dr Cost of Goods Sold $5,460

Cr Inventory $5,460

Total Revenue:

sales revenue + interest revenue $9,100+$1,000 = 10,100

Total revenue= $10,100

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4 years ago

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nlexa [21]

Answer: Pandemic: awful. Vaccine: useful; get it. Masks: not really required, your still breathing your air, just through tiny gaps in fabric.

Explanation:

just my opinion.

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3 years ago

Read 2 more answers

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Mamont248 [21]

Business can be defined

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3 years ago

Fiat money: Group of answer choices has advantages over commodity-backed money. is currency from Italy.can include currency back

butalik [34]

The correct answer is A) has advantages over commodity-backed money.

Fiat money has advantages over commodity-backed money.

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3 years ago