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2 years ago

5

Depreciation is incorporated into the discounted cash flow analysis of an investment proposal because it: Select one: a. Is a co

st of operations which cannot be avoided. b. Results in an annual cash outflow. c. Is a cash inflow. d. Reduces the cash outlay for income taxes

1 answer:

tia_tia [17]2 years ago

5 0

Answer:

the answer is b

Explanation:

cause its the annual cash outflow

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3 years ago

Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current pr

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The outlook for the economy and the markets is for an improvement.

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2 years ago

Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government

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B.) Remain unchanged

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3 years ago

Terrell Trucking Company is in the process of setting its target capital structure. The CFO believes that the optimal debt-to-ca

Semenov [28]

Answer:

a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.

b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.

Explanation:

The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.

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2 years ago

During March, the production department of a process operations system completed and transferred to finished goods 35,000 units

kotegsom [21]

Answer:

Direct Labor Equivalent unit cost : $5,415463

Explanation:

$\left[\begin{array}{ccccc}\\ &$Units to be assigned costs:&&Equivalent Units&\\&&$Whole Units&Materials&Conversion\\&$Beginning&35000&35000&17500\\&$Started and completed&71000&71000&71000\\&$transferred&106000&106000&106000\\&$ending&39000&39000&11700\\&$Total units to be assigned costs&145000&145000&117700\\\end{array}\right]$

<u><em>Transferred units:</em></u>

beginning + started - ending = transferred

35,000 + 71,000 - 39,000 = 71,000

Labor cost: 581,000 + 56,400 = 637,400

equivalent units for conversion: 117,700

(trasnferrred + percentage of completion ending WIP)

<em><u>Equivalent unit cost:</u></em>

637,400 / 117,700 = 5,415463

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3 years ago