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3 years ago

Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Business

1 answer:

Y_Kistochka [10]3 years ago

4 0

Answer:

1. $35,830

2. B) No, since ROI will be lowered.

3. $13 per DL

Explanation:

1. Present value of inflows = $146,000*Present value of annuity factor (10%,6)

Present value of inflows = $146,000 * 4.355

Present value of inflows = $635,830

Net present value = Present value of inflows - Present value of outflows

Net present value = ($635,830 - $600,000)

Net present value = $35,830.

So, the net present value for Project Nuts is $35,830.

2. ROI = Net income / Investment

ROI = (100000-60000-40000) / 150000

ROI = 0%

The ROI required is 25%. Hence, the new project should not be accepted as ROI will be lowered.

3. Direct labor price Variance = Actual hours (AR - SR)

$10,500 = 10,500 (AR - $12)

$10,500 = 10,500 AR - $126,000

AR = $10,500 + $126,000 /10,500

AR = $13 per direct labor hour.

So, the actual rate of pay for direct labor is $13 per DLH.

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By 1830 home manufacture had declined significantly due to:

taurus [48]

Answer:

Explanation:

According to the history of America, by 1830 home manufacture had declined significantly due to increased industrial organization and advances in transportation.

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4 years ago

Assume that Zambia has a domestic investment of $1500 billion, private domestic savings of $3000 billion, and a government defic

nexus9112 [7]

Answer:

$1,500

Explanation:

Domestic investment = $1500 billion

Private domestic savings = $3000 billion

Government deficit = $2000 billion

Rise in government spending = $1000 billion

Now,

Trade deficit =

Domestic investment - Private domestic saving - Government savings

also,

Total Government deficits = $2,000 + $1000

= $3,000

and,

Government savings = - Government deficits

= - $3,000

Now we know government deficit is 3000 billion and if spending increases further 1000 billion, the government deficit will be 4000 billion

thus,

Trade deficit = $1,500 - $3,000 - (- $3,000)

= $1,500

4 0

3 years ago

Like many college students, Bernadette applied for and got a credit card that has an annual percentage rate (APR) of 15%. The fi

Dovator [93]

Answer:

It would take Bernadette approximately <u>33 months</u> to completely pay off the stereo system.

Explanation:

Since it is assumed that Bernadette makes her payment when she sees her statement at the end of each month, we use the formula for calculating the present value (PV) of an ordinary annuity to determine the number of months as follows:

PV = M * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the new stereo system = $400

M = minimum monthly payment = $15

r = monthly interest rate = 15% / 12 = 0.15 / 12 = 0.0125

n = number of months = n

Substitute the values into equation (1) and solve for n as follows:

400 = 15 * ((1 - (1 / (1 + 0.0125))^n) / 0.0125)

400 / 15 = (1 - (1 / 1.0125)^n) / 0.0125

26.6666666666667 * 0.0125 = 1 - (1 / 1.0125)^n

0.333333333333334 = 1 - 0.987654320987654^n

0.987654320987654^n = 1 - 0.333333333333334

0.987654320987654^n = 0.666666666666666

Loglinearizing both sides, we have:

n * log0.987654320987654 = log0.666666666666666

n * (-0.00539503188670629) = -0.176091259055682

n = -0.176091259055682 / -0.00539503188670629

n = 32.64, or 33 approximately.

Therefore, it would take Bernadette approximately <u>33 months</u> to completely pay off the stereo system.

6 0

4 years ago

Jiminy Cricket Removal has a profit margin of 7.6%, total asset turnover of 1.73, and ROE of 17.2%. What is this firm s debt-equ

liubo4ka [24]

Answer:

The debt to equity ratio is 30.81%

Explanation:

The computation of the debt equity ratio is shown below:

ROE = Profit margin × Asset turnover × equity multiplier

17.2% = 7.6% × 1.73 × (1 + debt ÷ equity)

17.2 ÷ 13.148 = (1 + debt ÷ equity)

1.308184 = (1 + debt ÷ equity)

So, after solving this,

hence, The debt to equity ratio is 30.81%

We simply applied the Dupont analysis and the same is to be considered

4 0

3 years ago

An office building and its equipment are insured to $7,100,000. The present annual insurance premium is $0.85 per $100 of covera

andrew11 [14]

Answer:

a) 14.74%.

b) 13 years

Explanation:

a. Find the rate of return if the sprinkler system is installed.

P = -$18,000 - $360(P/A,i,20) + ($0.45)($7,100)(P/A,i,20)

= (P/A,i,20)=18000/2835 = 6.35

= $\frac{(1+i)^{20} -1 }{i(1+i)^{20}}$ = 6.35

Solving for i we get,

i =14.74%.

b. With interest at 12%, find the payout period for the sprinkler system.

P = -$18,000 - $360(P/A,12%,n) + ($0.45)($7,100)(P/A,12%,n)

(P/A,12%,n) = 18000/2835 = 6.35

= $\frac{(1+0.12)^{n} -1 }{0.12(1+0.12)^n}$ = 6.35

Using numerical solving to find the real roots of this equation (using a calculator, or Excel), we get n≅12.67 = 13 years. This means the payout period is about 13 years.

7 0

3 years ago