1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Allisa [31]
2 years ago
10

Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 880 2 1,250 3 1,510 4 1,675 I

f the discount rate is 8 percent, what is the present value of these cash flows
Business
1 answer:
myrzilka [38]2 years ago
5 0

Answer:

the present value is $4,316.35

Explanation:

The computation of the present value of given cash flows is shown below:

Present value is

= Cash flows at year 1 ÷ (1 + rate of interest) + Cash flows at year 2 ÷ (1 + rate of interest)^2 + Cash flows at year 3 ÷ (1 + rate of interest)^3 + Cash flows at year 4 ÷ (1 + rate of interest)^4

= $880 ÷ 1.08 + $1,250 ÷ 1.08^2 + $1,510 ÷ 1.08^3 + $1,675 ÷ 1..08^4

= $4,316.35

Hence, the present value is $4,316.35

You might be interested in
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3
Tcecarenko [31]

Answer:

$695.24 per unit

Explanation:

Calculation to determine what The unit product cost of Product R3 under activity-based costing is closest to

First step is to Calculate Activity rates

Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)

Labor related Number of DLH $ 40,636÷13,000 = 3.13 Per DLH

Production orders Number of Order 65,880÷ 1,600= 41.18 Per Order

Order size Number of MH 433,075÷ 7,600 = 56.98 Per MH

Second step is to calculate the Cost assigned to Product R3

Cost assigned to Product R3

Activity name Activity Rates Activity ABC Cost

(A) (B) (A x B)

Labor related 3.13 * 11,000 =$34,430

Production orders 41.18* 1,200=$49,416

Order size 56.98*3,900= $222,222

Total Overheads assigned $306,068

($34,430+$49,416+$222,222)

Production 1,100

Overhead cost per unit $278.24

Product R3

Direct material $211

Direct labor (10x $20.60 per DLH) $206

Overheads $278.24

Total Cost per unit $695.24

($211+$206+$278.24)

Therefore The unit product cost of Product R3 under activity-based costing is closest to $695.24 per unit

3 0
2 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

5 0
3 years ago
In March, Stinson Company completes Jobs 10 and 11.
mario62 [17]

Answer:

The journal entries are as follows:

(i) On March 31,

Finished Goods A/c Dr. $56,400

           To Work in Process        $56,400

(To record the completion of the two jobs)

(ii) On March 31,

Cash A/c Dr. $38,000

  To sales                    $38,000

(To record the sale Job 10)

(iii) On March 31,

Cost of goods sold A/c Dr. $21,400

            To finished goods                 $21,400

(To record the cost of the job sold)

8 0
2 years ago
What do you mean by Producer's Equilibrium ?????​
Alika [10]

Answer:

it is refered to as profit maximization condition

6 0
3 years ago
Read 2 more answers
Which of the following would not be reported as current liabilities on the balance sheet?
olga55 [171]
D. Accounts receivable
6 0
2 years ago
Other questions:
  • What is meant by a viable business idea?
    12·1 answer
  • Have you ever had an experience where you were not fully aware of what you were purchasing or service you were agreeing to?
    12·1 answer
  • Suppose you have $19 to spend. pepsi costs $1 per can, and pizza costs $2 per slice. given the marginal utilities shown, what co
    5·1 answer
  • A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the coming month from its marketing department.
    12·1 answer
  • Bill is the treasurer for a fast-growing organization whose budget has recently been growing at a rate of 10% per year. The budg
    8·1 answer
  • Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead
    14·1 answer
  • Other types of capital expenditure proposals may also sometimes be paired as either/or choices. Which of the following proposal
    5·1 answer
  • The intersection of the aggregate demand and aggregate supply curves determines ______. Multiple choice question. the equilibriu
    11·1 answer
  • In the context of the elements of scientific management, time and motion studies focus on: group of answer choices designing dif
    7·1 answer
  • the supply of a good will be more elastic, the a. more the good is considered a luxury. b. broader is the definition of the mark
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!