The start-up chemical company must earn <u>$8.5 million </u>in the first year.
<h3>What is Rate of Return (ROR)?</h3>
The rate of return (ROR) is the net gain of an investment for a period. The dollar ROR is computed by deducting interest on acquired funds (debts) from the earnings before interest. It can be expressed as a percentage of the initial investment.
Data and Calculations:
Average cost of capital = 15%
Expected rate of return = 20%
Reduction in the rate of return = 3%
New expected rate of return (ROR) = 17% (20% - 3%)
Venture capital funds = $50 million
Interest expense on venture capital = $7.5 million ($50 million x 15%)
Earnings in the first year = $8.5 million ($50 million x 17%)
Thus, the start-up chemical company must earn $8.5 million in the first year.
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Answer:
a consumer surplus of $10 and Tony experiences a producer surplus of $190.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$340 - $330 = $10
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$330 - $140 = $190
Answer:
The state of being responsible for something, especially by law
Susie’s IQ falls into the average category. It is because
since she receive the IQ score of 90, a person with an IQ score of 90-109 is
considered to have a normal up to the average intelligence in which she
acquires.
The static-budget variance for operating income for Jerome Mobility Inc for 2017 is $7,500 F
Solution & Explanation:
Static difference in net profits
= Actual result - Static budget amount
= $47,500 - $40,000
= $7,500 F
The static budget is related to the amount of development expected at the beginning of the financial year. The master budget is the static budget, since it is around a single (absolute) projected production level which is established for the time.
F implies the real expense is smaller than the estimated costs for product products.
The single-budget distinction is the difference in the single budget between the real effects and the resulting estimate.
An adverse deviation -denoted U— has the impact of decreasing operational profit relative to the expected sum as interpreted separately. For certain countries, including the UK, negative variances are often referred to as adverse variances.