Answer:
$1,831,342.6
Explanation:
Firstly, we need to calculate weighted average cost of capital (WACC) for Cannoli Corp:
WACC = Weight of equity x Cost of equity + Weight of debt x Pretax cost of debt x (1 - Tax rate)
= (1/1.56) x 11.31% + (1 - 1/1.56) x 4.94% x (1 - 40%)
= 8.314%
Next, we need to calculate present value (PV) of all cashflow of this project:
PV = CF1/(1 + WACC) + CF2/(1 + WACC)^2 + ... + CF9/(1 + WACC)^9
= 297,000/(1 + 8.314%) + 297,000/(1 + 8.314%)^2 + ... + 297,000/(1 + 8.314%)^9
= 1,831,342.6
The maximum price that the company would be willing to spend for this project is its PV of $1,831,342.6
The poor country has an absolute advantage in the production of quinoa.
<h3>What is absolute advantage?</h3>
A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries who produce the good.
For example, if a country produces 97% of a good, it means it produces majority of the good. This indicates that the country has absolute advantage in the production of the good.
To learn more about absolute advantage, please check: brainly.com/question/25812820
Answer:Total general and administrative expenses budget per month =$10,250
Explanation:
Total general and administrative expenses are the compulsory costs to ensure that a company's day to day operations is maintained whether or not the company is making profit.
General and administrative expenses includes Rent, Utility bills, insurance wages and benefits, depreciation of office furnitures, Office supplies and are regarded as operating expenses and therefore interest paid on a bank loan is not an operating expenses but a financing activities and will not be considered as an administrative expense.
Administrative expenses= administrative Salaries+Other cash administrative expenses+Depreciation
=$5,600+$3,000+$1,650
=$10,250
Answer:FALSE
Explanation: Accumulated depreciation is a negative account (contra-account) which Describes the total depreciation amount allotted to an asset since it is put into use. Accumulated depreciation is not added to the balance of the long lived asset in the balance sheet.
When an organization prepares it's balance sheet,it ensures that the depreciation schedule is recorded for all it's assets ensuring that both the cost of the equipment and it's depreciation is documented accordingly. Accumulated depreciation reduces the value of the assets in the balance sheet when added.
Answer:
This a "scientific management" also known as Taylorism . The main approach of this school is reduce the waste to minimal and optimize workforce. Paying an employee per production will be a taylorism approach since you only pay for the effective production and if the employee wants to earn more money, the employee will have to improve his productivity in order to produce and earn more.
Explanation: