Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
the answer is the Inventory turnover ratio hope this helps
Explanation:
Answer:
247,500
Explanation:
The calculation showing the weighted average number of shares to be used in the calculation of the of the basic earning per share for 2018 is shown below:
= ![[(100,000 * \frac{12}{12}) + (30,000 * \frac{10}{12})] * 2 Stock splits - 10,000 * \frac{3}{12}](https://tex.z-dn.net/?f=%5B%28100%2C000%20%2A%20%5Cfrac%7B12%7D%7B12%7D%29%20%2B%20%2830%2C000%20%2A%20%5Cfrac%7B10%7D%7B12%7D%29%5D%20%2A%202%20Stock%20splits%20-%2010%2C000%20%2A%20%5Cfrac%7B3%7D%7B12%7D)
Answer:
Year Dry Prepreg discounted cash flow
0 -$30,000 -$30,000
1 10,000 8,772
2 10,000 7,695
3 10,000 6,750
4 10,000 5,921
5 10,000 5,194
Year Solvent Prepreg. discounted cash flow
0 -$90,000 -$90,000
1 28,000 24,561
2 28,000 21,545
3 28,000 18,899
4 28,000 16,578
5 28,000 14,542
a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project
Dry Prepreg
NPV = $4,330
IRR = 19.86%
MIRR = 17.12%
payback = 3 years
discounted payback = 4.17 years
Solvent Prepreg
NPV = $6,130
IRR = 16.80%
MIRR = 15.51%
payback = 3.21 years
discounted payback = 4.58 years
b. Assuming the projects are independent, which one(s) would you recommend?
- both projects, since their NPV is positive
c. If the projects are mutually exclusive, which would you recommend?
Dry prepreg becuase its IRR, MIRR are higher, and its payback and discounted payback periods are shorter.
The answer is C. stocks =)
