Answer:
a. $8.00
Explanation:
The approach we will use to calculate cost per equivalent unit for conversion using weighted average method consists of the following stages:
1st stage: Add beginning (i.e start of August) conversion cost with conversion costs incurred during August to get total conversion cost
2nd stage: Then divide total conversion cost upon equivalent units of production (units of production for conversion =5300).
Now, lets compute.
Total conversion cost = $15900+$26500
TCC=$42400
Cost per equivalent unit for conversion= $42400÷5300
CPEUC= $8
Answer:
iii
Explanation:
Most of the time hotels will charge more when more rooms are booked, so when you book your hotel room, and many rooms are booked, most people do get charged more.
Answer:
12.46%
Explanation:
Data provided
Dividend income = $1.1
Ending share per price = $63
Initial price = $57
The computation of the percentage total return is shown below:-
Total return = (Dividend income + (Ending share per price - Initial price)) ÷ Initial price
= ($1.1 + ($63 - $57)) ÷ 57
= ($1.1 + $6) ÷ 57
= $7.1 ÷ 57
= 0.12456
or 12.46%
Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
