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3 years ago

When making replacement decisions, the development of relevant cash flows is complicated when compared to expansion decisions.

Business

1 answer:

fgiga [73]3 years ago

4 0

Answer: True

Explanation:

Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.

Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.

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you are planning to make monthly deposits of $140 into a retirement account that pays 13 percent interest compounded monthly. If

VashaNatasha [74]

Answer:

FV= $314,365.69

Explanation:

Giving the following information:

Monthly deposti= $140

Number of months= 25*12= 300

Interest rate= 0.13/12= 0.01083

<u>To calculate the future value of the investment, we need to use the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {140*[(1.01083^300) - 1]} / 0.01083

FV= $314,365.69

7 0

3 years ago

If the Moran Corp. has an ROE of 12 percent and a payout ratio of 20 percent, what is its sustainable growth rate

AleksandrR [38]

Answer:

9.6%

Explanation:

The ROE is 12 %

The payout ratio is 20%

The first step is to calculate tnr retention ratio

= 1-(20/100)

= 1-0.2

= 0.8

The sustainable growth can be calculated as follows

= 12×0.8

= 9.6

Hence the sustainable growth rate is 9.6%

6 0

3 years ago

On the long-run aggregate supply curve,

kirill115 [55]

The long-run aggregate supply curve shows the relationship between price level and real GDP.

<h3>What is the supply curve?</h3>

It should be noted that the information is incomplete. Therefore, an overview will be given. The supply curve is a graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period.

In this case, in a typical illustration, the price will appear on the left vertical axis, while the quantity supplied will appear on the horizontal axis.

The long-run aggregate supply curve shows the relationship between price level and real GDP that would be supplied if all prices were fully flexible.

The position of the long-run aggregate supply curve is determined by the aggregate production function and the demand and supply curves for labor.

Learn more about supply curve on:

brainly.com/question/26430220

#SPJ1

8 0

2 years ago

Widden Company, which sells electric razors, had $320,000 of cost of goods sold during the month of June. The company projects a

butalik [34]

Answer:

Part A. The amount of purchases budgeted for July is calculated below:

Amount of purchases = Cost of goods sold + Closing inventory - Opening inventory

Amount of purchases = ($320,000 x 1.09) + $34,000 - $33,000

Amount of purchases = $348,800 + $34,000 — $33,000

Amount of purchases = $349,800

Therefore, the amount of purchases budgeted for July is $349,800.

Part B. The amount of cash payments budgeted for inventory purchases in July is calculated below:

Amount of cash paid in July = Opening accounts receivable + 75% of purchases in July

Amount of cash paid in July = $37,000 + ($349,800 × 0.75)

Amount of cash paid in July = $37,000 + $262,350

Amount of cash paid in July = $299,350

Therefore, the amount of cash paid in July is $299,350.

8 0

3 years ago

Sound Company reported the following amounts for May, 2008: Direct materials purchased $254,000 Beginning raw materials inventor

Yakvenalex [24]

Answer:

$254,100

Explanation:

The computation of the cost of direct materials used in production is shown below:

= Direct materials purchased + Beginning raw materials inventory - Ending raw materials inventory - Indirect materials requisitioned and used

= $254,000 + $12,000 - $7,900 - $4,000

= $254,100

Hence, all the other information is not considered. Therefore, ignored it

6 0

3 years ago