Answer:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.
Explanation:
Proper year zero cash flow to use in evaluating this project = After-tax value of the land + Cost of manufacturing new plant + Grading Expenses
= $10,100,000 + $21,300,000 + $880,000
= $32,280,000
Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.
NOTE
:
- The after-tax value of the land of $10,100,000 should be considered since it is an opportunity cost of capital if the land is used rather than sold.
- The cash outlay of $21,300,000 for the plant cost and the $880,000 for the grading costs are the part of the initial investment in year 0.
Answer:
The correct word for the blank space is: all-you-can-afford, percent of sales.
Explanation:
The all-you-can-afford budgeting technique implies having a company investing in everything the firm can pay for. It is normally used for start-ups with limited funds so they use it as much as they can to keep the business going. As the sales increase, the investments in different departments are increased as well such as production, logistics, or marketing so the company moves according to the demand of the product.
The percent of sales budgeting relies -as it names says- on the number of sales a company is capable of processing. All the organizations' expenditures and advertising will have a directly proportional relationship with the percentage of sales of the organization.
Answer:
35.09%
Explanation:
Data provided as per the question
Gross profit on sales = $3,053,000
Sales = $8,700,000
The computation of gross profit in percentage is as shown below:-
= Gross profit on sales ÷ Sales
= $3,053,000 ÷ $8,700,000
= 35.09%
Therefore, for computing the gross profit in percentage we simply divide the gross profit with sales.
Answer:
C) "Variable annuities include investments in various products, normally mutual funds, so the value of the variable annuity will fluctuate with increases or decreases in the values of the products held within the variable annuity."
Explanation:
Joe's investment adviser should have discussed what type of investment he was recommending and why he was recommending them. If Joe wants to know more about his investments, his IAR has a fiduciary obligation to explain how a variable annuity works.
Variable annuities are a type of investment vehicle, which allows tax deferral on investment growth. Variable annuities are called variable because the investor decides which investment he will take and the value of the investments vary in time.
Usually variable annuities include different mutual funds, and if the price of the shares of the mutual funds vary, so will the value of the annuity.
The answer is: few. i think im not sure
