Welfare payments are governments subsidies that provide financial aid to those who cannot care for themselves. Some are meant to be temporary aid like TANF, SNAP, and day care programs. Others like programs for the aged, blind, and disabled may be given for the remainder of their lives.
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Answer:
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Explanation:
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Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
C. Future value of a series of deposits
It is not B, because although Future Value of a Single Amount (FV) is similar, it is only when you deposit a certain amount one time and let it grow in value.
Your question says they deposit money more than once, so it is C.
Answer:
The overhead for the year was $130,075
Explanation:
GIVEN INFORMATION -
ESTIMATED ACTUAL
Manufacturing overhead $132,440 $128,600
Machine hours 2800 2750
Here for calculating the overhead for the year we will use the following formula =
\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours
= \frac{\$132,440}{2800}\times 2750
\$47.3\times 2750 = \$130,075
Therefore the overhead for the year was $130,075