Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,000 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices

Answers

Answer 1

Answer:

Investment "B" is superior.

Explanation:

Below is the calculation of each investment net present worth.

Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)

Net present worth of investment A = -12000 + 15500 (0.9070)

Net present worth of investment A = 2058.95

Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)

Net present worth of investment B = -8000 + 6000 (1.8594)

Net present worth of investment B = 3156.4

Investment "B" is superior because its net present worth is greater.


Related Questions

All the individuals that buy the product for their personal consumption is called………

Answers

Answer:

A consumer

Explanation:

Trong một cuộc khảo sát 64 khách hàng ở một tiệm ăn nhanh, thời gian đợi trung bình là 3 phút
và độ lệch chuẩn là 1,5 phút. Với độ tin cậy 98%, tìm khoảng tin cậy cho thời gian đợi phục vụ
trung bình của tiệm ăn này. Biết thời gian đợi phục vụ là biến ngẫu nhiên có phân phối (xấp xỉ)
chuẩn.

Answers

Answer:

Explanation:

N=64, x tb=3, S=1.5, 1-alpha= 0.98

=> 1- alpha/2 =0.49 => z alpha/2= 2.33

E= 2.33×1.5/ căn 64= 0.437

Khoảng cách [ x tb +- E]=[ 2.563; 3.437]

KNK bank receives a deposit of GHS 1,000 and observes a cash ratio of 10%. Assuming there is no cash drain(cashless economy) and all rxcess reserves are pushed into loans. a. what is the maximum amount of money that can be pushed into loans. b. what is the total increase in money supply with the bank?​

Answers

The maximum amount of money which can be created from the deposit will be GHS 1,000 and the total increase in the money supply with the bank will be GHS 1,000 too.

Money supply has to do with the total amount of money that's in circulation in a particular period of time in an economy.

A) Based on the information given, the maximum amount of money which can be created from the deposit will be GHS 1,000.

B. The total increase in the money supply with the bank will be GHS 1,000. The reason for this is because there were no additional information that was given.

Read related link on:

https://brainly.com/question/3625390

An owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68,000 and the broker's commission. To the nearest dollar, what should the selling price be to net her $45,000

Answers

Answer: $121505

Explanation:

Let the selling price be represented by x.

Then the broker's commission will be:

= 7% of x = 0.07 × x = 0.07x

Based on the information given,

Selling price - (Mortgage balance + Broker's commission) = $45000

Therefore, x - ($68000 + 0.07x) = $45000

x - $68000 - 0.07x = $45000

x - 0.07x = $45000 + $68000

0.93x = $113000

x = $113000/0.93

x = $121505

Therefore, the selling price is $121505

Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?

Answers

Answer:

$184791

Explanation:

The calculation of the value of the firm is given below:

Year         Future Cash Flow      PVF at 12.2%      PV of Cash Flow

1                 11000                               0.891                  9801

2               12500                               0.794                  9925

3               16000                                0.708                11328

Total                                                                              31054

Present Value of Terminal Value

= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708

= [16720 ÷ 0.077] × 0.708

= 153737

Now

value of Firm = 31054 + 153737

= $184791

Mordica Company’s standard labor cost per unit of output is $22.00 (2.00 hours x $11.00 per hour). During August, the company incurs 2,340 hours of direct labor at an hourly cost of $9.90 per hour in making 1,300 units of finished product.

Required:
Compute the total, price, and quantity labor variances.

Answers

Solution :

Total labor variance = [(standard rate x standard hours) - (actual rate x actual hours)]    

                               = [$11 x (1300 x 2)] - ($9.90 x 2340)

                               = $28600 - $23166

                               = $ 5434 unfavorable

Labor price variance = ( standard rate - actual rate) x actual hours

                                   = ($11.00 - $9.90) x 2340

                                   = $ 1.1 x 2340

                                   = $2574 favorable

Labor quantity variance = standard x (standard hours - actual hours)

                                       = $11.00 x [(1300 x 2) - 2340]

                                       = $11.00 x (2600 - 2340)

                                       = $11.00 x 260

                                       = $2860 unfavorable

what is GDP of a country

Answers

Answer:

Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.

Explanation:

GDP is an acronym for Gross Domestic Products (GDP) and it can be defined as a measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country.

On a related note, Gross Domestic Products (GDP) is a measure of the production levels of any nation.

Basically, the four (4) major expenditure categories of GDP are;

I. Consumption (C).

II. Investment (I).

III. Government purchases (G).

IV. Net exports (N).

In conclusion, GDP is a measure of the total amount of finished goods and services produced by a country.

Baden Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.

Answers

Answer:

d. Income would increase by $40,000

Explanation:

Calculation to determine what the acceptance of the special order would affect net the income

Net income=(Additional unit price*Additional units)-(Variable cost *Additional units

Let plug in the formula

Net income = ($140× 1,000)-($100×1,000)

Net income= $140,000-$100,000

Net income=$40,000 Increase

Therefore If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows Income would increase by $40,000

The cost of equity is ________. the interest associated with debt the rate of return required by investors to incentivize them to invest in a company the weighted average cost of capital equal to the amount of asset turnover

Answers

Answer:

If an = 3n - 2 , find a2

Explanation:

If an = 3n - 2 , find a2If an = 3n - 2 , find a2

The year 14 interest of a bond is the face line of the bond

Answers

Answer:

yes you are correct okay with you

What is happening with Unemployment of Indonesia over the past 2 or 3 years?

Answers

Answer:

The unemployment rate in Indonesia increased to 6.26 percent in the first quarter 2021 from 4.94 percent in the same quarter a year earlier, amid the economic downturn caused by the coronavirus crisis. The number of unemployed persons surged by 1.82 million to 8.75 million. Meanwhile, the number of employed declined by 2.23 million to 131.06 million, mostly in the transportation and warehouse (-0.30 percent) while that in accommodation and food services reported the largest increase (0.34 percent). Meantime, the labor force participation rate declined to 68.08 percent in the first quarter from 69.21 percent in the prior year. 

Explanation:

give 5 star

Sheridan Company purchased a delivery truck. The total cash payment was $43,718, including the following items. Negotiated purchase price $34,800 Installation of special shelving 2,880 Painting and lettering 930 Motor vehicle license 280 Two-year insurance policy 2,740 Sales tax 2,088 Total paid $43,718 Calculate the cost of the delivery truck.

Answers

Answer:

the cost of the delivery truck is $40,698

Explanation:

The computation of the cost of the delivery truck is given below:

Negotiated purchase price $34,800

Installation of special shelving $2,880

Painting and lettering $930

Sales tax  $2,088

Cost of the delivery truck $40,698

Hence, the cost of the delivery truck is $40,698

The same should be considered and relevant

Describe the events that occur in an efficient market in response to new information that causes the expected return to exceed the required return. What happens to the market value

Answers

Answer:

The efficient market hypothesis tells, in an equilibrium, the price of stocks or security is an unbiased estimate of the true values.

Explanation:

Thus, in the equilibrium,  of security prices are neither an overvalued nor are undervalued. Suppose the investors learn new information about the company that suggests there stock is worth more than the current price.  The security gets undervalued expected return exceeds the required return. Increased in demand for security from the investors with this new information will thus bid up the market value plus reduce its expected return until they are equal.

the financial statements for banana company include the following items: 20x9 20x8 cash $51,500 $50,000 short-term investments 25,000 15,000 net accounts receivable 53,000 50,000 merchandise inventory 163,000 50,000 total assets 532,000 554,000 accounts payable 131,500 124,000 salaries payable 25,000 13,000 long-term note payable 59,000 53,000 compute the current ratio for 20x8. group of answer choices

Answers

Answer:

1000,$5000maaf kalo salah

Two leading home appliance companies, Globex Inc. and Pug Tech, are in competition for market share. In their quest for exciting new products, Globex employs an open innovation model, while Pug Tech pursues a closed innovation model. Which of the following statements is most likely true?

a. Globex has a greater chance of capturing market share.
b. Pug Tech has a superior absorptive capacity.
c. Pug Tech will protect its intellectual property with patents and trade secrets.
d. Globex is most concerned with securing first-mover advantages.

Answers

Answer: c. Pug Tech will protect its intellectual property with patents and trade secrets.

Explanation:

A closed innovation model means that the company develops the product internally instead of through collaboration with external sources.

Pug Tech will therefore produce new products internally. As a result, they will be able to protect these products from being copied by others through patents and trade secrets because the law will recognize that they have exclusive rights to the new technology seeing as they came up with it.

write the work of an architectural engineer .​

Answers

Answer:

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Answer:

Architectural engineers apply science and technology to the real world by designing buildings that enhance our standard of living and improve our quality of life. They do this by combining building systems – structural, electrical, mechanical, lighting, acoustics and fire protection - into an integrated whole. These creative problem solvers are constantly facing the challenges of the future like sustainable building materials and green energy sources. Architectural engineers are trained to use the latest technologies – like computer based building design and analysis software (Revit, eQUEST, RISA-3D, etc), building information modeling (BIM), and advanced sensors & controls – to design, build, and operate the various systems within a building.

If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage or residual value of $150, the journal entry for monthly expense under straight-line depreciation is: (Note: EOM indicates the last day of each month.)

Answers

Answer:

EOM depreciation expense $100

accumulated depreciation $100

Explanation:

Depreciation is a method used in expensing the cost of an asset.

Yearly Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($3750 - $150) / 3 = $1200

Monthly depreciation = yearly depreciation / 12

1200 /12 = 100

Accumulated depreciation is sum of depreciation expense

Estimated inventory (units), March 1 17,000 Desired inventory (units), March 31 19,700 Expected sales volume (units): Area M 6,500 Area L 8,900 Area O 7,800 Unit sales price $15 The number of units expected to be manufactured in March is a.23,200 b.59,900 c.25,900 d.42,900

Answers

Answer:

c.25,900

Explanation:

The computation of the no of units expected to be manufactured is given below:

No of units manufactured is

= No. of units sold + Closing units - Opening units

= (6,500 + 8,900 + 7,800) + 19,700 - 17,000

= 25,900

Hence, the no of units expected to be manufactured is 25,900

Therefore the option c is correct

Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 6,400 Unit-level labor 6,400 Unit-level overhead 3,800 Product-level costs* 8,400 Allocated facility-level costs 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Zachary for $2.70 each. Required Calculate the total relevant cost. Should Zachary continue to make the containers

Answers

Answer:

Zachary Electronics

Zachary should continue to make the containers.  It is cheaper to make than to buy from Russo Container Company.

Explanation:

a) Data and Calculations:

Production units = 9,100 containers

Unit-level materials                $ 6,400

Unit-level labor                          6,400

Unit-level overhead                  3,800

Total unit-level costs            $16,600

Product-level costs*                 8,400

Allocated facility-level costs  28,000

Relevant or avoidable costs:

Unit-level materials                $ 6,400

Unit-level labor                          6,400

Unit-level overhead                  3,800

Total unit-level costs            $16,600

Product-level costs*                 2,800 ($8,400 * 1/3)

Total relevant costs =          $19,400 (to make)

Relevant cost to buy:

Offer from Russo Container company = $2.70 per container

Total cost from outside supplier = $24,500 ($2.70 * 9,100)

A provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is:

Answers

Answer:

liquidated damages provision.

Explanation:

Liquidated damages can be regarded as one that is been presented in some particular legal contracts which is an estimate of otherwise intangible to one of the party or hard-to-define losses. It can be regarded as a provision which give room for the payment of a specified sum in case there is breach of contract by one of the parties. It can be regarded as contractual provision set up so that a party in breach will need to make a payment of pre-determined amount , which serve as compensation for failure by breaching partyin performing particular obligation.

For instance, provision requiring a construction contractor to pay $300 for every day it is late in completing the construction contract is liquidated damages provision.

You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.25 percent. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage.

Answers

Answer:

$545.74  

Explanation:

The actual mortgage is the purchase price minus the down payment, based on the mortgage amount, the monthly payment can be determined using a financial calculator as shown below:

N=360(number of monthly payments in 30 years=30*12=360)

I/Y=7.25/12(monthly interest rate without the "%" sign)

PV=-80000($100,000-20%*$100,000=$80000)

FV=0(after all required payments , the balance of the mortgage balance would be zero)

CPT

PMT=$545.74  

On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $43,495,895. The company uses the interest method.

a. Journalize the entries to record the following:

1. sale of the bonds.
2. First semiannual interest payment, including amortization of discount.
3. Second semiannual interest payment, including a of discount.

b. Compute the amount of the bond interest expense for the first year.
c. Explain why the company was able to issue the bonds for only $43,495, 895 rather than for the face amount of $50,000,000.

Answers

Answer:

Ebert Company

Journal Entries:

1) Debit Cash $43,495,895

Debit Bonds Discounts $6,504,105

Credit Bonds Payable $50,000,000

To record the sale of the bonds at a discount.

2) First semiannual interest payment:

Debit Interest Expense $1,957,315

Credit Amortization $207,315

Credit Cash $1,750,000

To record the first semiannual interest payment.

3) Second semiannual interest payment:

Debit Interest Expense $1,966,644

Credit Amortization $216,644

Credit Cash $1,750,000

To record the second semiannual interest payment.

b. Bond interest for the first year = $3,923,959 ($1,957,315 + $1,966,644)

c. The company issued the bonds at a discount at a coupon rate of 7%, which is less than the market interest rate of the bonds (9%).

Explanation:

a) Data and Calculations:

Face value of bonds = $50,000,000

Price received =            $43,495,895

Discount =                       $6,504,105

Coupon interest rate = 7%

Interest payment = semiannually

Maturity period = 10 years

Market (effective) interest rate = 9%

1) Cash $43,495,895 Bonds Discounts $6,504,105 Bonds Payable $50,000,000

2) First semiannual interest payment:

Interest Expense $1,957,315 Amortization $207,315 Cash $1,750,000

Cash payment =   $1,750,000 ($50,000,000 * 3.5%)

Interest expense =  1,957,315 ($43,495,895 * 4.5%)

Amortization =         $207,315

Fair value of bonds = $43,703,210 ($43,495,895 + $207,315)

3) Second semiannual interest payment:

Interest Expense $1,966,644 Amortization $216,644 Cash $1,750,000

Cash payment =   $1,750,000 ($50,000,000 * 3.5%)

Interest expense = 1,966,644  ($43,703,210 * 4.5%)

Amortization =        $216,644

Blade Breeze Company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan has 20 separate parts. The direct materials cost is $70, and each ceiling fan requires 2.50 hours of machine time to manufacture. Additional information is as follows:
Activity Allocation Base Predetermined Overhead Allocation Rate
Materials handling Number of parts $ 0.08
Machining Machine hours 7.20
Assembling Number of parts 0.35
Packaging Number of finished units 2.80
What is the cost of machining per ceiling fan? (Round any intermediate calculations and your final answer to the nearest cent.)
A) $18.00
B) $70.00
C) $144.00
D) $196.00

Answers

Answer:

Machining= $18

Explanation:

Giving the following information:

Each ceiling fan requires 2.50 hours of machine time to manufacture.

Machining Machine hours 7.20

To calculate the cost of machining per ceiling fan, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machining= 2.5*7.2

Machining= $18

An owner can lease her building for $160,000 per year for three years. The explicit cost of maintaining the building is $55,000, and the implicit cost is $70,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of:_______.
a. Accounting profits.
b. Economic profits.

Answers

Answer:

a. Accounting profits.

Account profit = Revenue - explicit cost

= 160,000 - 55,000

= $105,000

Present value of $105,000 per year for 3 years is:

= 105,000 * Present value interest factor of an Annuity, 3 years, 5%

= 105,000 * 2.7232

= $285,936

b. Economic profit

Economic profit = Revenue - explicit cost - implicit cost

= 160,000 - 55,000 - 70,000

= $35,000

Present value of $35,000 per year for 3 years:

= 35,000 * Present value interest factor of an Annuity, 3 years, 5%

= 35,000 * 2.7232

= $95,312

Note: The profits were treated as annuities as they were constant.

Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.

Answers

Answer:

$0.16

Explanation:

Particulars       Quantity   Price    Amount

Cocoa                  400       $1.25      $500

Sugar                   80         $0.40     $32

Milk                      120        $2.50     $300

Total                                                  $832

Standard direct materials cost per bar = Total amount / Number of bar

Standard direct materials cost per bar = $832 / 5,200 bars

Standard direct materials cost per bar = $0.16

XYZ expects to sell 28,000 pools in 2019. It budgets the beginning inventory of Direct Materials, Work-in-process, and Finished goods to be 26,000; 0; 1,300 units; AND ending inventory to be 26,000; 0; 2,800 units. How many pools need to be produced

Answers

Answer:

the  no of pools need to be produced is 29,500 units

Explanation:

The computation of the no of pools need to be produced is given below:

= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units

= 2800 + 28000 - 1300

= 29500 units.

Hence, the  no of pools need to be produced is 29,500 units

An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $400 had been earned. Demonstrate the December 31 adjusting entry by choosing the correct statement below.

a. Debit Service revenue for $400.
b. Debit Unearned revenues for $400.
c. Debit Unearned revenues for $600.
d. Credit Unearned revenues for $400.

Answers

Answer:

b. Debit Unearned revenues for $400.

Explanation:

When money is received in advance for a service that is yet to be rendered, the money is accounted for as a liability called deferred or unearned income.

The entries are

Dr Cash

Cr Deferred revenue

when the service is rendered, revenue is said to be earned with the following entries passed

Dr Deferred revenue

Cr Revenue

Hence when $1,000 for services was received on December 1 and was recorded as a liability

Dr Cash   $1,000

Cr Deferred revenue  $1,000

when $400 had been earned

Dr Deferred revenue  $400

Cr Revenue  $400

Option b is right

b. Debit Unearned revenues for $400.

Desks by Daisy sells a student desk for $100 per unit. The variable cost per desk is $40 and Daisy's fixed costs of producing the desks equals $15,000 per month. Daisy needs to sell _______ desks per month in order to break-even.

Answers

Answer:

250

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

$15,000 / (100 - 40)

$15,000 / 60

250

what are the basic requirement of ppe

Answers

Answer:

Personal safety equipment, commonly known as PPE, is the equipment used to minimize the risks causing severe injuries and diseases in the workplace.

Explanation:

Items like gloves, safety glasses, and shoes, earplugs or muffles, hard hats, breathing or coverings, jackets, and whole-body suits may be included in personal protective equipment.

All personal protective equipment should be designed and constructed in a safe and reliable manner. It should fit conveniently and promote the use of workers.

These wounds and diseases can be attributable to chemical, radiological, physical, electrical, mechanical, or other hazards in the workplace.

When engineering, employment practices, and administrative controls are not feasible or not sufficient, employers must provide their employees with personal protective equipment and ensure their proper utilization.

The above answer is correct

Supply is more elastic over long periods than over short periods because:_____.
a. producers can make more adjustments in the long run than in the short run.
b. consumers can make fewer adjustments in the long run than in the short run.
c. producers can make fewer adjustments in the long run than in the short run.
d. consumers can make more adjustments in the long run than in the short run.

Answers

Answer:

A

Explanation:

Price elasticity of supply measures the responsiveness of quantity supplied to changes in price of the good.

Price elasticity of supply = percentage change in quantity supplied / percentage change in price

If the absolute value of price elasticity is greater than one, it means supply is elastic. Elastic supply means that quantity supplied is sensitive to price changes.  

Supply is inelastic if a small change in price has little or no effect on quantity supplied. The absolute value of elasticity would be less than one

The short run is a period where all  factors of production are fixed. In the short run, a firm would continue to produce if price is above average variable cost. If this is not the case, it would shut down

The long run is a period where all factors of production are varied. It is known as the planning time for a company

Supply is more elastic in the long run than in the short run because the producer can make adjustments in the long run

Other Questions
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