The new manufacturing plant of BMW vehicles will be engaged in the process of mass production.
<h3>What is mass production?</h3>
The process of production, wherein a large proportion of goods or inventories are produced by a business organization to reduce the costs of production, is known as mass production.
Hence, option B states about mass production. Complete question has been added in the image for reference.
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Answer and Explanation:
The computation of the price that should be sell is shown below:
As we know that
Price = dividend × (1 + growth rate) ÷ (discount rate - growth rate)
a. The price is
= $3 × 1.05 ÷ (15% - 5%)
= $31.50
b. Now the price is
= $3 × 1.05 ÷ (12% - 5%)
= $45
Hence, the above represent the answer in both the cases.
Answer:
Explanation:
The journal entries are shown below:
Cash A/c Dr $582,000 ($600,000 × 0.97)
Discount on Bonds Payable A/c Dr $18,000
To Bonds payable A/c $600,000
(Being the issuance of the bond is recorded and the remaining balance is debited to the discount on bond payable account)
Cash A/c Dr $612,000 ($600,000 × 1.02)
To Bonds payable A/c $600,000
To Premium on bonds payable A/c $12,000
(Being the issuance of the bond is recorded and the remaining balance is credited to the premium on bond payable account)
Answer:
D. $155,600
Explanation:
The calculations of the budgeted cash collections are shown below:
= June sales × sale month collection percentage + May sales × following month collection percentage + April sales × second following month collection percentage
= $150,000 × 40% + $160,000 × 56% + $150,000 × 4%
= $60,000 + $89,600 + $6,000
= $155,600
Simply we multiplied the sales with the collection criteria
Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.