The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:

Primo Corporation acquired 60 percent of Secondo Corporation’s voting common stock. On the date of acquisition, Primo had equipm

Gnesinka [82]

Answer: $250,000

Explanation:

The amount at which buildings and equipment will be reported in consolidated statements immediately following the acquisition will be the value of the book value of Primo's equipment which is $50,000 plus Secondo’s book value of its buildings and equipment which is $200,000.

Therefore, the answer will be:

= $50,000 + $200,000

= $250,000

5 0

3 years ago

Trudeau, Inc. is considering Project A and Project B, which are two mutually exclusive projects with unequal lives.

Anna35 [415]

Answer:

NPV

Project A - $35,155.12

Project B - $31,882.39

Tradeau would choose both project A and B

IRR

Project A - 20.01%

Project B - 19.91%

Tradeau would choose both project A and B

Explanation:

The NPV is the discounted cash flow less the amount invested.

The IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The NPV and IRR can be found using a financial calculator:

NPV and IRR for project A

Cash flow for year 0 = $-140,000

Cash flow each year from year 1 -8 = $36,500

I = 13%

NPV = $35,155.12

IRR = 20.01%

NPV and IRR for project B

Cash flow for year 0 = $-160,000

Cash flow for year one to six = $48,000

I =13%

NPV = $31,882.39

IRR = 19.91%

The decision criteria using the NPV is to choose the project with postive NPV. both projects have a positive NPV so they would both be chosen.

The decision criteria using the IRR is to choose the project with IRR greater than the discount rate. Both IRRs are greater than the discount rate, so both projects would be chosen.

I hope my answer helps you

8 0

3 years ago

Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump s

guajiro [1.7K]

Answer:

PV= $17,365,776.86

Explanation:

Giving the following information:

Cf= 2,200,000

Number of years= 20

Discount rate= 12%

Additional lump sum= 9,000,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000

FV= $167,515,373.4

Now, the present value:

PV= FV/(1+i)^n

PV= 167,515,373.4/1.12^20

PV= $17,365,776.86

7 0

4 years ago

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be

Angelina_Jolie [31]

Answer:

Safety stock

Explanation:

Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.

Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same

6 0

3 years ago

Winston Company’s high and low level of activity last year was 60,000 units produced in April and 20,000 units produced in Decem

sergejj [24]

Answer:

$36,000.

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Machine maintenance costs - low Machine maintenance costs) ÷ (High activity level - low activity level)

= ($52,000 - $20,000) ÷ (60,000 units - 20,000 units)

= $32,000 ÷ 40,000 units

= $0.8

The variable cost equal to

= High activity level × per unit variable cost

= 60,000 units × 0.8

= $48,000

So, the fixed cost would be

= Total cost - variable cost

= $52,000 - $48,000

= $4,000

For 40,000 units, total maintenance cost would be

= Number of units × per unit variable cost + Fixed cost

= 40,000 units × $0.8 + $4,000

= $32,000 + $4,000

=$36,000

8 0

3 years ago