On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required:Assuming the market interest rate on the issue date is 8%, the bonds will issue at $320,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answers

Answer 1

Answer:

Journal entries are given below

Explanation:

Entry for the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021, are prepared as follows

January 01, 2021 (Splash City issues $320,000 of 8% bonds)

                                                 Debit     Credit  

Cash                                320,000  

Bonds payable                          320,000    

June 30, 2021 (Interest paid)

                                        Debit       Credit  

Interest expense         $12,800  

Cash                                                 $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800

December 31, 2021 (Interest paid)

                                        Debit       Credit  

Interest expense         $12,800  

Cash                                                 $12,800

Working

Interest expense = $320,000 x 8% x 6/12

Interest expense = $12,800


Related Questions

Which of the following choices below lists all accounts that have a normal debit balance? Multiple Choice Supplies, Accounts Payable, Service Revenue Equipment, Unearned Revenue, and Sales

Answers

Answer:

The answer is supplies and equipment

Explanation:

To be in debit side, there must be:

1. Increase in asset

2. Increase in expense

3. Decrease in liability

4. Decrease in equity

5. Decrease in sales or revenue

And to be in credit side, there must be:

1. Decrease in asset

2. Decrease in expense

3. Increase in liability

4. Increase in equity

5. Increase in sales or revenue

So the account that will have normal debit balance is Supplies(expense) and equipment (asset)

The failure to record a purchase of mer chandise on account even though the goods are properly included in the physical inven tory results in

Answers

Answer: D. an understatement of expenses and an overstatement of owners' equity

Explanation:

If a purchase of merchandise was not recorded, it would mean that Purchases being an expense that contributes to the Cost of Goods sold would be understated.

This understatement would mean that the the Net income is overstated because the purchase expenses were never deducted from it. Net Income is part of owners' equity so if it is overstated, so is owners' equity .

The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

Year Wind Turbines Biofuel Equipment
1 $280,000 $300,000
2 280,000 300,000
3 280,000 300,000
4 280,000 300,000

The wind turbines require an investment of $887,600, while the biofuel equipment requires an investment of $911,100. No residual value is expected from either project.

Year 6% 10% 12% 15% 20%
1 0.943 0.909 0.893 0.870 0.833
2 1.833 1.736 1.690 1.626 1.528
3 2.673 2.487 2.402 2.283 2.106
4 3.465 3.170 3.037 2.855 2.589
5 4.212 3.791 3.605 3.353 2.991
6 4.917 4.355 4.111 3.785 3.326
7 5.582 4.868 4.564 4.160 3.605
8 6.210 5.335 4.968 4.487 3.837
9 6.802 5.759 5.328 4.772 4.031
10 7.360 6.145 5.650 5.019 4.192

Required:
a. Compute the net present value for each project. Use a rate of 6% and the present value of an annuity of $1 in the table above. If required, round to the nearest dollar.
b. Compute a present value index for each project.
c. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent.

Answers

Answer:

A. Wind Turbines  = $82,629.57

Biofuel Equipment = $128,431.68

B. Wind Turbines  = 1 + ($82,629.57 /  $887,600) = 1.093

Biofuel Equipment = 1 + ($128,431.68 / $911,100) = 1.141

C. Wind Turbines  = 10%

Biofuel Equipment = 12%

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator  

Wind Turbines

Cash flow in year 0 = $-887,600,

Cash flow each year from year 1 to 4 = $280,000

I = 6%

NPV = $82,629.57

IRR = 10%

Biofuel Equipment

Cash flow in year 0 =  $-911,100

Cash flow each year from year 1 to 4 = $300,000

I = 6%

NPV = $128,431.68

IRR = 12%

present value index = 1 + (NPV / Initial investment)

Wind Turbines  = 1 + ($82,629.57 /  $887,600) = 1.093

Biofuel Equipment = 1 + ($128,431.68 / $911,100) = 1.141

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

When using capital rationing, unfunded proposals a.are discarded for purposes of decision making for all future plans. b.are always considered to be unacceptable. c.may be reconsidered if funds later become available. d.None of these choices are correct.

Answers

Answer:

Correct Answer:

a. are discarded for purposes of decision making for all future plans.

Explanation:

In business organization, there will be situations where there will be need to ration the capital used in the business for effective running of the business. When there is an ongoing project, the project expenses would be rationed in such a way that, relevant ones would receive attention from the megre capital fund while unfunded proposal would be discarded.

You just won the lottery, which promises you $260,000 per year for the next 20 years, starting today (annuity due). If your discount rate is 7%, what is the present value of your winnings?

Answers

Answer:

the present value of your winnings will be $2,947,254.76.

Explanation:

The Present Value, PV of the Annuity due can be calculated as follows :

Pmt = $260,000

P/yr = 1

n = 20

r = 7%

Fv = $0

Pv = ?

Using a financial Calculator, the Present Value, PV of the Annuity due is $2,947,254.76

Company X's current assets increased by $40 million from 2007 to 2008, while the company's current liabilities increased by $25 million over the same period. The cash impact of the change in working capital was:

a. A decrease of $15 million
b. An increase of $15 million
c. An increase of $40 million
d. An increase of $25 million

Answers

Answer:

b. An increase of $15 million

Explanation:

The computation of the cash impact of the change in working capital is shown below:

As we know that

Working capital = Current assets - current liabilities

So, the change in working capital is

= Increase in current assets  - increased in current liabilities

= $40 million - $25 million

= $15 million

Hence, the b option is correct

It is crucial to understand the various factors contributing to your employees' stress as well as the consequences of it. Categorize the following sources of stress by dragging and dropping each one into its most appropriate category.
1. Task demands
2. Economic uncertalinty
3. Economic problems
4. Interpersonal demands
5. Technological change
6. Family problems
A. Environmental Sources of Stress B. Organizational Sources of Stress C. Personal Sources of Stress

Answers

Explanation:

A. Environmental Sources of Stress:

It is the stressors arising from environmental factors that can threaten the employee's work in some way.

2- Economic uncertalinty

5- Technological change

B. Organizational Sources of Stress:

This stress derives from internal or external conflicts that can occur at work, such as personal charges and poor relationships with other employees.

1. Task demands

4. Interpersonal demands

C. Personal Sources of Stress:

These are the stressors arising from the employee's personal life, which can directly impact the quality with which the employee performs his work.

3. Economic problems

6. Family problems

Assume​ short-run production. Indicate whether the statement below is true​ (T) or false​ (F). nothing​: The difference between the total cost and the total variable cost is a constant. nothing​: When total cost or total variable cost is​ increasing, there are increasing marginal returns to the variable input. nothing​: Changes in fixed costs do not affect the shape or placement of the total cost curve. nothing​: The marginal cost is the slope of the total cost curve or the total variable cost curve. nothing​: The average cost curve is everywhere above the average variable cost curve. nothing​: The marginal cost at a particular output level is the slope of a line from the origin to the corresponding point on the cost curve.

Answers

Answer:

1. The difference between the total cost and the total variable cost is a constant. - TRUE

The difference between the 2 is indeed constant and is the Total Fixed cost which does not change throughout the production process.

2. When total cost or total variable cost is​ increasing, there are increasing marginal returns to the variable input. - FALSE

With only the total cost or total variable cost given, it is not possible to tell how the Marginal returns to the input is faring.

3. Changes in fixed costs do not affect the shape or placement of the total cost curve. - FALSE

Fixed costs are part of the total cost curve so if they change they will impart the total cost curve. An increase may not change the shape but it will definitely change the placement of the Total cost curve.

4. The marginal cost is the slope of the total cost curve or the total variable cost curve. - TRUE

The slope of either the Total cost or variable cost curves are the graphical representations of a change in either which is the definition of the Marginal cost.

5. The average cost curve is everywhere above the average variable cost curve. - TRUE

As the average cost is the sum of both the average fixed and average variable costs, it will always be higher than either so it is higher than the Average variable cost.

6. The marginal cost at a particular output level is the slope of a line from the origin to the corresponding point on the cost curve. - FALSE

Marginal cost measures the difference in cost from one unit to the next. A line from the origin to the corresponding point would have measured for all units produced making it the Average cost not Marginal Cost.

Who should do the actual appraising of employees in an organization? Give your reasons for the choice you would make.

Answers

Answer:

It is the manager who supervises and assigns tasks to the employees who should undertake the appraisal of her employees.  The manager can achieve an objective appraisal system that motivates her employees if she can demonstrative high-level objectivity and fairness.

Explanation:

Performance appraisal is an important managerial tool which managers used to align individual employee's performance with the achievement of corporate objectives.  It is often done annually and involves a series of processes that culminates with either praise for work well done or a reprimand or caution issued to ensure that the concerned employees rediscover their purpose for being at the workplace.

Becker Financial recently declared a 2-for-1 stock split. Prior to the split, the stock sold for $60 per share. If the firm's total market value is unchanged by the split, what will the stock price be following the split?a. $35.28b. $39.53c. $42.50d. $33.58e. $33.15

Answers

Answer:

$30

Explanation:

In a 2 for 1 split, for every 1 share owned, the shareholder receives 2 shares

share price after split = share price before split / 2 = $60 / 2 = $30

Suppose a good has a downward-sloping, straight-line demand curve. If the price elasticity of demand is 2.5 when the price is $10 per unit, then the price elasticity of demand when the price is $7 per unit could be a. approaching infinity. b. 2.7. c. 2.5. d. 1.7.

Answers

Answer:

c. 2.5

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

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

the price elasticity would not change as a result of the change

Jolly Company produces hula hoops. Jolly Company has the following sales projections for the upcoming​ year: First quarter budgeted hula hoop sales in units Second quarter budgeted hula hoop sales in units Third quarter budgeted hula hoop sales in units Fourth quarter budgeted hula hoop sales in units Jolly Company wants to have ​% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the beginning of the year was hula hoops. How many hula hoops should Jolly Company produce during the first​ quarter?

Answers

Answer:  27,200 units

Explanation:

The ending inventory is calculated as;

Desired Ending Inventory = Beginning Inventory + Inventory produced - Sales in the quarter

(40,000 * 20%) = 3,600 + Inventory produced - 22,800

Inventory produced = 8,000 - 3,600 + 22,800

Inventory Produced = 27,200 units

On December 31, 2003, Rudd Company purchased 80 percent of the common stock of Wilton Company. At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. At what amount would land be reported in a consolidated balance sheet prepared immediately after the combination?

a. $540,000.

b. $590,000.

c. $700,000.

d. $860,000.

Answers

Answer:

land will be reported in a consolidated balance sheet at c. $700,000.

Explanation:

The Assets and Liabilities of Wilton Company are acquired at their Fair Value amounts instead of Book Values. Thus, the value of the land will be : $700,00 ($100,000 + $600,000).

Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs:
Fixed Cost per Month Cost per Machine-Hour
Direct materials $ 5.40
Direct labor $ 42,400
Supplies $ 0.30
Utilities $ 1,700 $ 0.25
Depreciation $ 15,200
Insurance $ 11,600
For example, utilities should be $1,700 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company’s direct labor is a fixed cost.
Required:
Prepare the company's planning budget for manufacturing costs for June.

Answers

Answer:

Total Manufacturing Costs is $95,680

Explanation:

                        Wyckam Manufacturing Inc.

              Planning Budget for Manufacturing costs

                       For the month Ended June 30

Direct Materials      (4,200 hours *$5.40)                    $22,680

Direct Labor                  Fixed                                        $42,400

Supplies                  (4,200 hours * $0.25 )                   $1,050

Utilities                   ($1,700+ 4,200 Hours * $0.25)      $2,750

Depreciation                  Fixed                                        $15,200

Insurance                       Fixed                                        $11,600

Total Manufacturing Costs                                         $95,680

New Morning Bakery is in the process of closing its operations. It sold its two-year-old bakery ovens to Great Harvest Bakery for $580,000. The ovens originally cost $778,000, had an estimated service life of 10 years, and an estimated residual value of $48,000. New Morning Bakery uses the straight-line depreciation method for all equipment. Required: 1. Calculate the balance in the accumulated depreciation account at the end of the second year.

Answers

Answer:

The balance in the accumulated depreciation account at the end of the second year is $146,000.

Explanation:

Straight line method charges a fixed depreciation charge on the asset during its period of use.

Depreciation Expense (Straight line) = Cost - Residual Amount ÷ Estimated Useful life

                                                             = $778,000 - $48,000 ÷ 10

                                                             = $73,000

Therefore, for each year, a depreciation expense of $73,000 is charged to profit an loss.

Accumulated Depreciation Calculation :

Depreciation Expense : Year 1     $73,000

Depreciation Expense : Year 2    $73,000

Total Expense                              $146,000

On December 31 of the current​ year, Jerome Company has an accounts receivable balance of before any year end adjustments. The Allowance for Doubtful Accounts has a credit balance. The company prepares the following aging schedule for accounts​ receivable: Total Balance 130 days 3160 days 6190 days over 90 days Percent uncollectible ​1% ​2% ​% ​% What is the Allowance for Uncollectible Accounts at December 31 of the current year after​ adjustments

Answers

Answer:

I looked for the missing information and found the following:

Total Balance     1-30 days    31-60 days    61-90 days    over 90 days

$329,000          $160,000      $90,000         $51,000           $28,000

% uncollectible        1%                2%                   3%                   20%

Allowance for Doubtful Accounts has a $1,100 credit balance before any adjustment.

total bad debt expense = $1,600 + $1,800 + $1,530 + $5,600 = $10,530

adjusting entry = $10,530 - $1,100 = $9,430

adjusting entry:

December 31, 202x, bad debt expense

Dr Bad debt expense 9,430

    Cr Allowance for doubtful accounts 9,430

After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a

Answers

Answer: target market

Explanation: A target market is simply a group of people whose needs and preferences match the product range of a company and to whom those products are marketed, often times actively. As such, when the resources and unique abilities of a firm has been analysed, and is now in the process of determining what group of customers it can satisfy with a good or service, then it is in the process of choosing a target market.

34. Pension gains related to plan assets occur when: A. The return on plan assets is higher than expected. B. The vested benefit obligation is less than expected. C. Retiree benefits paid out are less than expected. D. The accumulated benefit obligation is more than expected.

Answers

Answer: A. The return on plan assets is higher than expected

Explanation:

Pension gains related to plan assets is said to occur when the return on plan assets is higher than expected. In a situation whereby an individual or a firm expect a certain return on an asset and when the asset's return was eventually more than the expected return on it, this means that there is a pension gains related to plan assets.

Calculate the monthly implicit costs for a business owner who devotes 200 hours per month to his business that could be spent working at $50/hour for someone else.

Answers

Answer:

Implicit cost = $10,000

Explanation:

Implicit cost is the opportunity cost of using resources a business already owns.

This business owner passes this income by being in a business for himself

200 hours per month multiplied by $50/hour

200 x 50

= 10000

Implicit cost = $10,000

Tom and Lynda also inform you that the monthly individual membership fee is $100and that the monthly family membership fee is $160. Hercules offers a 10% discount if amember pays the entire year’s fee in a lump sum. About 180 individuals and 60 families takeadvantage of this offer – these numbers are spread evenly throughout the year. Herculespays for 60% of its purchases during the month of the purchase, and the remainder thenext month. Other variable costs (paid in cash) amount to $25 per month for each individualmembership and $45 per month for each family membership. Hercules also incurs$41,000 (which includes $12,500 in depreciation) toward fixed costs each month. Finally,Tom and Lynda inform you that they have to pay $20,000 toward the purchase of newequipment in September, and that they take out $15,000 each month as their profit. Finally,Hercules began September with a cash balance of $6,000.Required:What is Hercules’ cash budget for September?

Answers

Answer:

Net Cash $2,170

Explanation:

Cash Budget for September:

Beginning Balance $6,000

Individual membership fee revenue $1,350

Family membership fee revenue $720

Less:Variable Cost Individual  ($25 * 15) $375

Less:Variable Cost Family  ($25 * 5) $125

Less:Purchase of Machine $20,000

Less:Fixed cost $41,000

Net Cash $2,170

Individual membership fee revenue

$100 * 90% * 180 = 16,200 per year

16,200 / 12 = 1,350 per month.

Memberships per month = 180/12 = 15

Family membership fee revenue

$160 * 90% * 60 = 8,640 per year

8,640 / 12 = 720 per month.

Memberships per month = 60/12 = 5

Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

Answers

Answer:

13.31%

Explanation:

some information is missing:

Year        Cash flows

0              −$1,100

1                  $450

2                 $470

3                 $490

the easiest way to calculate the IRR is by using a financial calculator, IRR = 13.31%

but if we don't have one at hand, the IRR is the discount rate at which a project's NPV = 0

1,100 = 450/(1 + r) + 470/(1 + r)² + 490/(1 + r)³

to simplify the formula we must use trial and error:

since we already know the real IRR, I will start with a close number like 10%

1,100 = 450/(1 + 0.1) + 470/(1 + 0.1)² + 490/(1 + 0.1)³

1,100 = 409.09 + 388.43 + 368.14

1,100 ≠ 1,165.66

since the NPV is still positive, we must increase the discount rate. following the example we can use 12%

1,100 = 450/(1 + 0.12) + 470/(1 + 0.12)² + 490/(1 + 0.12)³

1,100 = 401.79 + 374.68 + 348.77

1,100 ≠ 1,125.24

we must increase the discount rate even more to 13%

1,100 = 450/(1 + 0.13) + 470/(1 + 0.13)² + 490/(1 + 0.13)³

1,100 = 398.23 + 368.08 + 339.59

1,100 ≠ 1,105.90

we keep increasing the discount rate to 14%

1,100 = 450/(1 + 0.14) + 470/(1 + 0.14)² + 490/(1 + 0.14)³

1,100 = 394.74 + 361.65 + 330.74

1,100 ≠ 1,087.13

since now the NPV is negative, the discount rate must be between 13-14%

we continue this way until we finally reach 13.31%

Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 British pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02, and the 180-day forward rate is $2.00. The British interest rate is 5 percent, and the U.S. interest rate is 4 percent over the 180-day period.

Answers

Answer:

The dollar cost of using a money market hedge to hedge 200,000 British pounds of payable due in 180 days is $400,152.38.

Explanation:

A money market hedge refers to a method that employed to to preserve the value of a foreign currency transaction in the domestic currency of a company in order to reduce the exchange rate or currency risk that is associated with business transactions with a foreign company.

For this question, the dollar cost of using a money market hedge can be calculated as follows:

Amount needed to invest in British pounds = Amount needed to hedge / (1 + British interest rate) = £200,000 / (1 + 0.05) = £190,476.19

Since this is in British pounds, we have to convert to the US dollars to obtain the amount of the US dollars that is needed to exchange as follows:

Amount needed to invest in the US dollars = Amount needed to invest in British pounds * Spot rate of the pound = £190,476.19 * $2.02 = $384,761.90

We can now calculate the amount needed to repay loan after 180-day as follow:

Amount needed to repay loan after 180-day = Amount needed to invest in the US dollars * (1 + U.S. interest rate) = $384,761.90 * (1 + 0.04) = $400,152.38

Therefore, the dollar cost of using a money market hedge to hedge 200,000 British pounds of payable due in 180 days is $400,152.38.

Manufacturing produces​ self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as​ follows:


Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.

Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900

Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.

Answers

Answer:

              Production budget for the first quarter of 202x

Particulars               January     February     March         Total

Expected sales        3,900        3,200          3,700          10,800

Required ending      800           925             1,100           2,825

inventory

Less beginning        975            800             925            2,700

inventory

Required number    3,725          3,325          3,875         10,925

of units to be produced

The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.

During group meetings, Douglas is never able to discuss his idea for reducing energy usage in the office. He has a detailed, well-thought out plan for how to accomplish this. He thinks it is a really great idea that can save the company money. But during the meetings, he does not even get a chance to share his ideas. Douglas should focus his efforts on _______________.

Answers

Answer: B) controlling the agenda

Explanation: During group meetings, Douglas is never able to discuss his idea for reducing energy usage in the office. He has a detailed, well thought out plan for how to accomplish this. He thinks it is a really great idea that can save the company money. But, within the current context, he does not even have a chance to share his ideas. Douglas should focus his efforts on ________. A) researching his idea more B) controlling the agenda C) finding out how his employees view him D) asking outside sources to validate his idea

Douglas would better benefit from controlling the agenda of the meeting so he is better able to pitch forward his well thought out idea concerning reducing energy usage in the office.

Douglas should focus his efforts on controlling the agenda.

What is controlling the agenda?

Agenda manage can be described because the capacity to affect the way wherein options enter collective selection-making. Even as agenda control is important generally, it plays a unique position inside the rational-preference-primarily based concept of democratic establishments (or the “new institutionalism”).

What is an agenda in a negotiation?

A proper agreed-upon list of dreams to be accomplished or objects to be discussed in a particular order at some stage in an assembly or negotiation. Agendas may be formal and apparent, or casual and diffused in negotiations. A negotiation timetable can be used to control the negotiation assembly.

Learn more about the agenda here: https://brainly.com/question/7044416

#SPJ2

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

a. True
b. False

Answers

Answer:

A. True

Explanation:

Answer: A. True

Explanation: The process of bank loans.

Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $149,630 and annual net cash flows of $45,000 for each of the six years of its useful life. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the internal rate of return for the proposal.

Answers

Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project.  This IRR helps the managers to determine the projects that add value and are worth undertaking.  IRR is based on assumptions.  Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used  to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

Andy tells Ervin and Marina that everyone will lose their jobs if the company goes out of business, whether they have guild protection or not. Which influence tactic is Andy most likely utilizing?

consultation
rational persuasion
legitimating tactics
ingratiation
exchange

Answers

Answer: Legitimating tactics

Explanation:

Rational Persuasion has to do with when an individual is being convinced with logic, reasons or facts.

Consultation means simply getting other people to participate in making decisions and planning.

Ingratiation is when an individual tried to influence someone else by becoming likeable to the person.

Legitimating tactics occur when an individual uses his or her power to influence others. This tactic is intended to make people do something and not to motivate them.

This strategy is designed to force people to accomplish something rather than to motivate them. When a person utilizes his or her power to persuade others, this is known as legitimizing methods.

So, Option C is correct.

The other Options are incorrect as:

Option A is incorrect as Getting other people involved in decision-making and planning is what consultation entails.

Option B is incorrect as When a person is persuaded using logic, arguments, or facts, this is known as rational persuasion.

Option D is incorrect as When someone tries to influence someone else by becoming likable to them, this is known as ingratiation.

Option E is incorrect as A strategy entails making explicit or inferred commitments and exchanging favors. Tactics used by the coalition.

Thus Option C is the correct tactic andy has used.

For more information about legitimating tactics refer to the link:

https://brainly.com/question/25687866

A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively. What is the discounted payback period if the required rate of return is 16 percent

Answers

Answer:

Never. the amount invested is never recovered

Explanation:

Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows

Discounted cash flow in year 1 = 7200 / 1.16 = $6206.90

Discounted cash flow in year 2 = $8,900 / 1.16² = $6614.15

Discounted cash flow in year 3 = $7,500 / 1.16³ = $4804.93

Adding the discounted cash flows together gives a value of $17,625.98. This value is less than the cost of the project. So, the amount invested is never recovered

MV Corporation has debt with market value of ​million, common equity with a book value of ​million, and preferred stock worth million outstanding. Its common equity trades at per​ share, and the firm has million shares outstanding. What weights should MV Corporation use in its​ WACC?

Answers

Answer:

The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;

Total amount = Debt + Preferred stock + common equity

= 100 million + 20 million + ( 50 * 6 million)

= $420 million

Proportions.

Debt

= 100/420

= 24%

Preferred Stock

= 20/420

= 5%

Common Equity

= 300/420

= 71%

If an analyst wished to determine the degree to which leverage was being employed by a subject company, she would most likely examine that issuer's:______.
a) sales to debt ratio.
b) debt to equity ratio.
c) current ratio.
d) price to book ratio.

Answers

Answer:

B) debt to equity ratio.

Explanation

The debt to equity ratio is computed by dividing the issuer's long-term debt by their total capitalization. The higher the ratio, the more leverage being used by the company.

Hope this helps! (づ ̄3 ̄)づ╭❤~

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