Answer:
NPV = $20,040.35
Explanation
The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
Annual net cash inflow = Savings - Technician cost = 61,427- 20,000
= $41,427
PV of Cash flow= $41,427 × (1-(1.12^(-5))/0.12= 149,335.06
PV of salvage value = 1.12^(-5)×$6,641 = 3768.281749
NPV = 149,335.06 + 3,768.281 -133,063= 20,040.35
Answer:
Kd = 7%
Ke = D1 + g
Po(1 - FC)
Ke = $2 + 0.09
$40(1 - 0.15)
Ke = $2 + 0.09
$34
Ke = 0.1488 = 14.88%
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)
WACC = 8.928 + 1.68
WACC = 10.6%
Explanation:
In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
Answer:
a. a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
Explanation:
Diminishing returns In economics is the decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
Due to the fire outbreak, the owner will continuously try to increase her manual effort (labor) into the business, which at a point will overwhelm her remaining capital, leading to the decrease in the marginal productivity of what's left of her capital.
Answer:
Manufacturing overhead was over-applied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $274,000
Explanation:
Under / over applied manufacturing overhead = Applied Manufacturing overhead - Actual Manufacturing overhead
Over-applied manufacturing overhead = $74,000 - $59,000
Over-applied manufacturing overhead = $15,000
Cost of Goods Sold = $289,000 - $15,000 = $274,000
Manufacturing overhead are over-applied by $15,000 and cost of goods sold is $274,000.
1. A long-term rental - d. lease. As far as I remember a lease is a contract which defines the terms under which one one side agrees to rent property owned by another another side.
2. A guarantee which covers the entire car, with few (if any) exceptions. - h. Bumper–to–bumper warranty. When you buy new car it is the most comprehensive warranty available for you. It's also called wrap-around warranty.
3. The amount or percentage by which something decreases in value over time - e. Depreciation. It's true definition of depreciation like it's written in books.
4. The value of a piece of property, over and above any mortgage or other liabilities relating to it. Ownership right in property - g. Equity. Home equity is the <span>part of your property value that you really own. </span>
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5. The payment made to obtain insurance - </span>i. Insurance premiums. The amount of insurance premiums is defined by insurance contract. Usually it's monthly or yearly payment.
6. Able to be trusted with financial responsibility; high likelihood of paying back debt - f. Reliability. It's 100% correct definition of the term "reliability" like it's written in books.
7. The retail value of something; the price that something is advertised as costing - <span>j. Sticker price. As the previous one, it's truly correct definition of sticker price. It's a retail price of something.</span>
8. The cost of something when bought directly from the manufacturer - b. Wholesale value. It's the price which DEALER would pay to manufacturer. It's much cheaper than sticker price.
9. Wholesale value minus depreciation, plus taxes, registration and licensing fees - a. Used car cost. This a correct explanation of used car cost. There are also could be an insurance.
10. Online resource for car pricing - c. Kelley Blue Book. Just search the Internet and you'll find much more resources for car pricing.