The WBS includes all the elements included and excluded as described in the Scope

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch

cricket20 [7]

Answer:

a) Present value of the investment: $198,936

b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.

c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch

Explanation:

Please find detailed of calculation in (a) which is shown as below:

Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.

7 0

3 years ago

Stock and bond markets:

olga_2 [115]

Stock markets is a stock exchange and a bond market is where dept securities are issues and traded

8 0

3 years ago

Ginny Trueblood is considering an investment which will cost her $120,000. The investment produces no cash flows for the first y

velikii [3]

Answer:

The project should be rejected as the payback period of 3.97 years exceeds the required 3 years. So, the correct option is E

Explanation:

The table showing the discounted cash flows of each year:

Computing discounted payback as:

Discounted Payback = Number of years + (Initial Cost - Discounted Cash flow of year 1 + Discounted Cash flow of year 2 + Discounted Cash flow of year 3 / Discounted Cash flow of year 4)

= 3 + ($120,000 - $0 - $28,925.62 - $41,322.31 / $51,226.01)

= 3 + ($49,752.07 / $51,226.01)

= 3 + 0.97

= 3.97

Working Note:

Discounted Cash Flow is computed as:

Discounted cash flow = Cash Flow / (1 + r) ^ n

where

r is rate of return that is 10%

n is number of year

So,

For 1st year:

= $0 / (1 + 0.1) ^1

= $0

For 2nd year:

= $35,000 / (1 + 0.1) ^ 2

= $35,000 / 1.21

= $28,925.61

For 3rd year:

= $55,000 / (1 + 0.1) ^ 3

= $55,000 / 1.331

= $41,322.31

For 4th year:

= $75,000 / (1 + 0.1) ^ 4

= $75,000 / 1.4641

= $51,226.01

6 0

3 years ago

Bonita Corporation had net sales of $2,409,200 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of goods

____ [38]

Answer:

net income: $ 451,010

EPS: $ 6.32 per share

Explanation:

net sales 2,409,200

cost of good sold (1,464,600)

gross profit: 944,600

operating expenses:

selling expenses (284,000)

operating income 660,600

non operating:

interest revenue 38,100

interest expense (54,400)

non operating expense (16,300)

earning before taxes: 644,300

tax expense: 30% 193,260

net income 451,010

shares outstanding 71,390

Earning per share: 451,010/71,390 = 6,31755

4 0

3 years ago

1. Mixed economies have aspects of both

Ronch [10]

1) Mixed economies are a mix of Command (regulated by the government) and free (Market) economy - the answer is b)
2)Today most countries have a mixed economy, there are few (such as North Korea) which have a command economy, but none have a true free market (for example drugs are regulated)
3)Inflation means that one needs more money to buy the same goods - this is measured by a rising Consumer Prize index (answer d)
4) this indicator would be a steady, but low inflation - but inflation is bad for the economy but lack of inflation is not really stable

7 0

3 years ago