Answer:
1. $275 million
Yes
2. 30%
Explanation:
Calculation for the NPV of the investment opportunity
NPV = –100 + 30/0.08
NPV= $275 million
Therefore the NPV will be $275 million
Yes, Based on the above Calculation they should make the investment
2. Calculation for IRR
IRR: 0 = –100 + 30/IRR
Hence,
IRR = 30/100
IRR = 30%
Therefore the IRR will be 30%
The IRR is great only in a situation where the cost of capital does not go beyond 30%.
Answer:
Indirect
Direct
Iindirect
Explanation:
Direct cost is the cost that can be traced back to the cost object whereas the indirect cost cannot be traced back. Cost object is something to which the costs are assigned. in this case the cafeteria workers are directly working with the cost object:Frozen pizza plant, hence the cost is directly associated with that. Janitorial supplies and property insurance cost does not directly relate to The cost object given here so it will be classified as indirect cost.
Option (B) The net cash provided by investing activities is $99000 is correct.
<h3>What is net cash?</h3>
- On a company's financial statements, net cash is a sum that is given.
- It is determined by deducting a company's total cash from its total liabilities.
- When assessing the cash flows of a corporation, the net cash figure is frequently utilized.
<h3>What is cash flow?</h3>
- The net balance of money coming into and going out of a business at a particular period is referred to as cash flow.
- A firm constantly receives and expends cash.
- For instance, when a retailer buys merchandise, money leaves the company and goes to its suppliers.
<h3>Calculation of Net cash provided by investing activities:</h3>
Net cash provided by investing activities = land ($154000 cash inflow) - equipment purchase ($55000 cash outflow) = $99000
Hence, The net cash provided by investing activities is $99000.
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In describing what adaptive expectations means to a friend, you explain that in order to make their economic condition forecasts, agents consider only current information and ignore the past.
Economic conditions describe the state of the economy currently in a nation or region. These circumstances evolve over time as a result of the business and economic cycles that accompany an economy's expansion and decline. When an economy is expanding, the economic conditions are viewed as sound or good; when an economy is contracting, they are viewed as adverse or negative.
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