Answer:
ltem of important must be shown separately
what is that GAAP
Answer:
D : project's rate of return is less than the required rate of return.
Explanation:
Net present value (NPV) is a projects evaluation technique that analyzes the present values of predicted future revenues and expenses. In other words, NPV is the current value of future inflows minus costs. In calculating the NPV, future values are discounted with an appropriate discount rate to give the present value.
The NPV can be a positive, zero or negative. Projects with positive NPV are preferred because they are considered profitable. A negative NPV signals that the present value of the expected inflows is lower than the current value of the projected cost at the required discount rate. If the discount rate is maintained, the project is a loss-making venture.
The use of a very high discount rate may give any projects a negative NPV.
Answer:
E. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.
Answer:
predetermined overhead rate: 14.51 dollars per labor hour
applied overhead at 18,500 hours: 268,435 dollars
Explanation:
we distribute the expected overhead over the cost dirver. In this case direct labor hour:
cost driver: labor hours:
labor cost: 231,322 / 12.71 labor rate = 18,200 labor hours
<u>expected overhead:</u>
depreciaiton 53,500
supervisor 135,000
supplies 42,900
property tax 32,750
total overhead 264,150
overhead rate: 264,150 / 18,200 = 14,51373626373626 = 14.51/hr.
applied: 18,500 x 14.51 = 268.435
Answer:
See explanation section.
Explanation:
The correct journal to record this transaction is -
Cash Debit $40,000
Common stock Credit $40,000
Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.
