Answer:
The Contra Entry is the transfer of cash. Hope this helps!
Answer:
Thus, payback period is = 3 years and 1.61 months
Explanation:
Payback period is the time it will take the project cash flows to recover the initial investment. The payback period for the project in question will be,
<u>Year</u> <u>Cash flow</u> <u>Remaining Amount</u>
1 850 (6900 - 850) = 6050
2 2400 (6050 - 2400) = 3650
3 3100 (3650 - 3100) = 550
As the year 4 cash flow is 4100, we know that the amount will be recovered in year 4. However, we will calculate the exact period or months in year 4 that it will take to recover total initial investment assuming that cashflow occurs at constant rate through out the year.
Time = 550 / 4100 * 12 = 1.61 months
Thus, payback period is = 3 years and 1.61 months
Answer: $400.56
Explanation:
Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)
Tax shield in year 3 = Interest expense * tax rate
= 140 * 25%
= $35
Horizon value = 35 * ( 1 + 3%) / (12% - 3%)
= $400.56
Answer:
Total materials variance = (Actual quantity * Actual price) - (Standard quantity * Standard price)
= 2,850 - (230 * 14.4)
= 462 (Favourable)
Materials price variance = (Standard price - Actual price) * Actual quantity
= [1.8 - (2,850/1,500)] * 1,500
= 150 Unfavourable
Materials quantity variance = (Standard quantity - Actual quantity) * Standard price
= [(230 * 8) - 1,500] * 1.8
= 612 Favourable
Total labour variance = (Actual hours * Actual rate) - (Standard hours * Standard rate)
= 19,458 - (230 * 84)
= 138 Unfavourable
Labour price variance = (Standard rate - Actual rate) * Actual hours
= [14 - (19,458/1,410)] * 1,410
= 282 Favourable
Labour quantity variance = (Standard hours - Actual hours) * Standard rate
= [(230 * 6) - 1,410] * 14
= 420 Unfavourable
You own $2,000 of city steel stock that has a beta of 2. 5. you also own $8,000 of rent-n-co (beta = 1. 9) and $4,000 of lincoln corporation (beta = 0. 25). 1.51 is the beta of your portfolio?
Portfolio beta = Weighted Average beta of stocks
Portfolio beta = [2,000(2.5) + 8,000(1.9) + 4,000(0.25)]/14,000
Portfolio beta = 1.51.
Lincoln corporation announced last year that it will cease manufacturing the Continental and MKZ at the end of 2020. The rest of the 2020 models can be purchased new. When those are gone, Lincoln will be left with an all-SUV lineup.
Learn more about the lincoln corporation at
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