The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project will provide a net cash inflow of $57,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 7 percent per year forever. The project requires an initial investment of $759,000. The firm requires a 14 percent return on such undertakings. The company is somewhat unsure about the assumption of a 7 percent growth rate in its cash flows. At what constant rate of growth would the company just break even?

Answers

Answer 1

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

Answer 2

The growth rate that would lead the business to breakeven is 6.49%.

At breakeven, the growth rate would lead to the cash inflows from the project being just enough to pay back the initial investment put into the catering business.

This growth rate is calculated by the formula:

Growth rate = ( (Investment * return rate) * - First cash inflow) / Investment

= ( (759,000 * 14%) - 57,000) / 759,000

= 6.49%

The growth rate that would lead the business to breakeven is therefore 6.49%.

Find out more at https://brainly.com/question/13186160.


Related Questions

A company has total revenue of $50,000,000, cost of sales of $40,000,000, operating expenses of $5,000,000, and financing costs of $2,000,000. What are earnings per share if the company has 100,000 shares outstanding and no preferred stockholders

Answers

Answer:

$30

Explanation:

Earnings per share = earnings / total outstanding shares

Earnings = total revenue - total cost

total cost = $40,000,000 + $5,000,000 + $2,000,000 = $47,000,000

Earnings = $50,000,000 - $47,000,000 = $3,000,000

Earnings per share = $3,000,000 / 100,000 = $30

what does it mean to be "in the red"

Answers

Answer:

The expression "in the red" is used to describe a business that has negative earnings. This is in contrast to the phrase "in the black" which refers to businesses that are profitable and financially solvent. ... Before the use of computers, accountants recorded income in black ink and expenses in red ink.

Explanation:

I hope it helpedhey buddy can u do a favor to mehey buddy can u do a favor to meif u don't mind ......plz subscribe to my UTube channel - gtron9528

On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $4,500,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $4,194,222. The bond issuance should be recorded as:

Answers

Answer: Debit Cash $4,194,222; Debit Discount on bonds payable $305,778; Credit Bonds payable $4,500,000

Explanation:

Based on the information given in the question, the journal entry will be prepared as follows:

Debit Cash $4,194,222

Debit Discount on bonds payable $305,778

Credit Bonds payable $4,500,000

Note that the discount on Bonds Payable was calculated as:

= $4,500,000 - $4,194,222

= $305,778

On whom the trade bill drawn ?​

Answers

The bill of exchange is drawn by the seller of the goods and is accepted by the buyer.

Single Plantwide Factory Overhead Rate Kennedy Appliance Inc.’s Machining Department incurred $159,500 of factory overhead cost in producing hoses and valves. The two products consumed a total of 5,500 direct machine hours. Of that amount, hoses consumed 2,800 direct machine hours. Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base. $fill in the blank 1

Answers

Answer:

the total amount of factory overhead that should be allocated to hoses using machine hours is $81,200

Explanation:

The calculation of the total amount of factory overhead that should be allocated to hoses using machine hours is given below:

= $159,500 × 2,800 ÷ 5,500

= $81,200

Hence, the total amount of factory overhead that should be allocated to hoses using machine hours is $81,200

the same is relevant

Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42,200. The division sales for the year were $963,800 and the variable costs were $477,000. The fixed costs of the division were $529,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be:__________.
a. $275,200 increase
b. $486,800 decrease
c. $211,600 increase
d. $275,200 decrease
e. $486,800 increase

Answers

Answer:

d. $275,200 decrease

Explanation:

Calculation to determine what The impact on Granfield's operating income for eliminating this business segment would be:

Using this formula

Impact on operating income =Saving in relevant fixed cost -loss of Contribution margin of backpack Division

Let plug in the formula

Impact on operating income=($529,000*40%)-($963,800-$477,000)

Impact on operating income=$211,600-$486800

Impact on operating income=$275,200 decrease

Therefore The impact on Granfield's operating income for eliminating this business segment would be:$275,200 decrease

3. Which of the following is NOT a factor of production?
a. land
d. entrepreneurship
b. output
e. capital
c. inputs

Answers

Answer:

Output.

Explanation:

because it is an effect of production but not a factor.

Output in I think this is right

Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product.
Sales (8,400 units) $ 764,400
Variable expenses 445,200
Contribution margin 319,200
Fixed expenses 250,900
Net operating income $68,300
If the company sells 8,200 units, its total contribution margin should be closest to:________.
a. $301,000
b. $311,600
c. $319,200
d. $66,674

Answers

Answer:

b. $311,600

Explanation:

Calculation to determine what total contribution margin should be closest to:

Using this formula

Contribution margin per unit=Current contribution margin ÷ Current sales in units

Where,

Contribution margin per unit

=$319,200 ÷ 8,400

Contribution margin per unit= $38

Now let determine the total contribution margin

Total contribution margin= 8,200 × $38

Total contribution margin=$311,600

Therefore total contribution margin should be closest to:$311,600

A money market security that has a par value of $10,000 sells for $8,924.70. Given that the security has a maturity of two years, what is the investor's required rate of return?

Answers

Answer:

The answer is "5%".

Explanation:

[tex]\to \$8,924.70 = \frac{10,000}{(1 + r )^2}\\\\\to \$8,924.70 (1+r)^2= 10,000\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= \frac{10,000}{\$8,924.70}\\\\\to (1+r)^2= 1.1204\\\\\to (1+r)= 1.05\\\\\to r= 1.05-1\\\\\to r=0.05\\\\\to r=5\%\\\\[/tex]

Frank is a 60- year-old man who is well-loved in his community since he was a boy. He is someone who is outgoing, a party lover, and love to have fun hanging out with peers. Frank is confident about life. From an early age he knew exactly what he wanted to become, and now as a man, he is confident about his career and family and want to leave them a good life when he departs this life. Frank express that he is not afraid of dying but he wants them to be ok when he is gone.
At work Frank is helpful to his colleagues, and even in his community he is well-known among the elderly since he is always putting on Christmas treats for them.
Imagine that Frank is your colleague, and that your boss asks you to write a character reference for Frank. Using Jung’s personality theory to guide your writing, present a minimum one- page character reference in which you spell out Franks behaviour, his outlook on life, his philosophy about people and all the other important things you know about him. Ensure you point out how these different parts of Franks life fits into Jung’s theory and overall what Jung’s theoretical concept says about him.

Answers

Answer:

I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.

Explanation:

I had a friend named Frank. He is a good friend of mine.I know him for more than 40 years. He has been with me in all my struggles and my happiness.I am very lucky to have a friend like him. He is not only a good friend of mine he is a good human being.He is friendly and kind to all the people.He is a well behaved person and respectful for everyone he meet.From his childhood he has a burning desire to achieve in life.He studies well and gives 100% in whatever he do.He works passionate in whatever he does.I got all my confidence from him.He had supported my in all my studies and also motivated me to achieve in my life.He got a good family and supported his family and gave them the best as he can.Even after his death he made everything ready for his family so that they will not suffer from his loss.I have never met such a person in my life.I am very ,much thankful for them and really it is a nice platform for me to thank him and i am very happy to write about him.

Arya has a homeowner’s policy that covers up to $400,000. Her house is completely destroyed in a fire. When an assessment is made of the house and possessions, it is decided that her losses are only worth about $350,000. How much money will Arya receive from her insurer (assuming there is no deductible)? A. $50,000 B. $200,000 C. $350,000 D. $400,000

Answers

Answer:

C: 350,000$

Explanation:

If there is no deductible then the insurance would pay the damges. Damages were 350,00$

Potatoes and wheat output (tons per day)

Country Potatoes Wheat
United States 4 2
Ireland 3 1

The United States has a comparative advantage in producing: __________

a. wheat
b. neither
c. potatoes
d. both

Answers

Answer:

c. potatoes

Explanation:

The computation is shown below:

Opportunity cost of producing 1 tons of wheat is  

for US = 4 ÷ 3 = 1.33 tons of potatoes

for Ireland = 2 ÷ 1 = 2 tons of potatoes

As the opportunity cost is higher in united states of potatoes so here the united stated should be comparative advantage in generating potatoes  

Liquidity is _________. Question 10 options: equal to the market value of a firm's total assets minus its total liabilities generally most associated with intangible assets a measure of the use of debt in a firm's capital structure valuable to a firm even though liquid assets tend to be less profitable to own equal to current assets minus current liabilities

Answers

Answer:

valuable to a firm even though liquid assets tend to be less profitable to own

Explanation:

The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per capita would be ________.

Answers

Answer:

The GDP per capita of country of Bolivia would be $7,181.82.

Explanation:

GDP Per capita refers to a measure that calculates a country's economic output per person by dividing its GDP by its population.

Therefore, we have:

GDP per capita = GDP / Population = $79 billion / 11 million = $79,000,000,000 / $11,000,000 = $7,181.82

Therefore, the GDP per capita of country of Bolivia would be $7,181.82.

Organizational learning and creativity play an important role in helping managers improve their decisions. Managers must take steps to promote organizational learning and creativity at individual as well as group levels to improve the quality of decision making. Managers can encourage and promote entrepreneurship that mobilizes resources to take advantage of an opportunity to provide customers with new or improved goods and services. The quality of managerial decision making ultimately depends on innovative responses to opportunities and threats. How can managers increase their ability to make nonprogrammed decisions that will allow them to adapt to, modify, and even drastically alter their task environments so they can continually increase organizational performance

Answers

Answer:

Organization learning is the process by which the managers seeks employees desires and ability to understand the task environment.

Explanation:

Organizational learning plays an important role in managers by raising their ability to make programmer decisions that will allow them by adapting to, modifying, and even alter their work environment. Creativity helps managers in thinking and problem solving.

A refiner produces heating fuel and gasoline from crude oil in virtually fixed proportions. What can you say about economies of scope for such a firm? What is the sign of its measure of economies of scope, SC?

Answers

Answer:

The cost benefits of simultaneous manufacturing do not exist and there are thus no economies as well as range disadvantages. A further explanation is provided below.

Explanation:

Scope savings are environmental impacts if a variety of commodities are produced collectively when producing these commodities collaboratively is far less costly than individually.Throughout this case, the manufacturer can create two items from the main resource although manufacturing takes place in some kind of a set proportion. Therefore includes the amount of production is identical to the expenditure of combined production of the products.

Thus the above is the appropriate solution.

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry

Answers

Answer:

debit Merchandise Inventory, credit Accounts Payable.

Explanation:

In the case when the merchandise is purchased on account, so the following journal entry is recorded

Merchandise inventory Dr XXXXX

      To account payable XXXXX

(Being merchandise inventory purchased on account)

Here merchandise inventory is debited as it increased the assets and credited the account payable as it also increased the liabilities

Assume Sheryl Jenkins wants to accumulate $ 13,241.39 in two years. She currently has $ 10,621.36 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,621.36 today) to have $ 13,241.39 exactly two years from today?

Answers

Answer: 11.65%

Explanation:

The $13,241.39 is a future value amount as it is what is to be accumulated in 2 years.

Future value formula therefore applies:

Future value = Current value * ( 1 + interest rate) ^ no. of years

13,241.39 = 10,621.36 * ( 1 + i) ²

(1 + i)² = 13,241.39 / 10,621.36

(1 + i)² = 1.24667556697

1 + i = √1.24667556697

i = 1.116546267 - 1

i = 11.65%

Jamon is a manager in a human resources organization. He has a message for Bob who works on the assembly line. What channel is he likely to use get the message to Bob

Answers

Answer: All of the above

Explanation:

The options include:

a. Face-to-face

b. Telephone

c. Electronic mail

d. All of the above

Since the manager manager has a message for Bob, any of the communication channels given here can be used.

There is no preferred communication channel here. The manager may decided to tell Bob the message face to face when he sees him. Also, he can call him on the telephone or send an email to him.

Therefore, the correct option is All of the above.

Mitchell waited until July 5, 2019, to file his 2018 Form 1040 return. He did request an extension and paid 90% of the anticipated balance due on April 15, 2019. His remaining balance due on his 2018 return is $88. What is his failure to file penalty

Answers

Answer:

The answer is "$0".

Explanation:

Following are the Tax code of the IRS, taxpayers high school ask that their return on their tax return be extended on a deadline but must thus pay at least 90% of all tax owed, so how they can suffer the nonpayment penalty.

All remainder of the taxes being paid should be paid by the additional due date set by the taxpayer. Companies will have to pay the tax interest just after the due date if they do not pay.

For this reason, M requires timely prolongation and pays 90% of the remainder by the due date. Therefore, 'M' won't be obliged to pay any taxman's failure-to-pay penalty. Therefore, M fails to file $0.

roject A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years. What is the payback period for this investment under the assumption that the cash inflows occur evenly throughout the year

Answers

Answer:

It will take 2.79 years to cover the initial investment.

Explanation:

Giving the following information:

Project A costs $6,000 and will generate annual after-tax net cash inflows of $2,150 for five years.

The payback period is the time required to cover the initial investment:

Year 1= 2,150 - 6,000= -3,850

Year 2= 2,150 - 3,850= -1,700

Year 3= 2,150 - 1,700= 450

To be more accurate:

(1700/2150)= 0.79

It will take 2.79 years to cover the initial investment.

Which 3 statements about the Client request functionality are correct? Selecting Create client request on the Work screen begins the process Checking the Notify client checkbox means the client will be sent an email You can't add attachments to a client request You can request documents from a non-QuickBooks Online client To update the status of a client request, select the request and then the Status drop-down

Answers

Answer: • Selecting Create client request on the Work screen begins the process.

• Checking the Notify client checkbox means the client will be sent an email.

• To update the status of a client request, select the request and then the Status drop-down.

Explanation:

QuickBooks refers to an online accounting software that's utilized by several businesses and can be used in the request of information from ones clients.

From the options given, the statements about the client request functionality which are correct include:

• Selecting Create client request on the Work screen begins the process.

• Checking the Notify client checkbox means the client will be sent an email.

• To update the status of a client request, select the request and then the Status drop-down.

You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock R, 25 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .80, 1.18, 1.19, and 1.36, respectively. What is the portfolio beta

Answers

Answer:

The Portfolio beta is 1.1045

Explanation:

The computation of the portfolio beta is given below:

Stock          Beta       Investment (Weight)       Weighted Beta

Stock Q      0.8         0.3                                   0.2400

Stock R       1.18       0.25                                  0.2950

Stock S       1.19       0.25                                  0.2975

Stock T        1.36      0.2                                    0.2720

Portfolio beta                                                  1.1045

Many experts believe that marketing is the most important function in a company. Discuss the reasons this is a true statement. Discuss the reasons this is not a true statement.

Answers

Solution :

Marketing is considered as an important function in a company.

Marketing is an important function in any organization as it allows the business to maintain a long-lasting and an ever-present relationships with the audience. It increase the brand value and generates revenue for the organization.

Marketing is not considered as an important function in a company.

Besides marketing there are other function as well which are important for an organization. The human resource department is an important function which maintains the relationship between the employees and the management. It works for the welfare of its employees which is considered as asset to the organization.

Also attention should be given to manufacture a good product seeing the demand in the market that can be easily available and usable by the customer. More research should be done to develop a product that is best for its consumers.

which of the following would be included in the set of electrical plans for individual residence?

A. Individual romex cables
B. Power panels to be installed
C. routes of cables
D. Wire sizes

Answers

Answer:

A. Individual romex cables

Explanation:

Individual romex cables would be included in the set of electrical plans for individual residence.

This is because they are a non-metallic sheathed cables, and they are flexible electrical cables which are popularly used in residential setups.

This cable comes with two insulated wires that include a ground copper wire that ensures safe passage of electrical current in case of any unfortunate event.

Expected Return American Eagle Outfitters (AEO) recently paid a $.42 dividend. The dividend is expected to grow at a 15.90 percent rate. At the current stock price of $24.47, what is the return shareholders are expecting?

Answers

Answer:

17.89%

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

24.47 = (0.42 x 1.1590) / (r - 0.1590)

24.47 x (r - 0.1590) = 0.487

(r - 0.1590) =0.01989

r = 0.1789 = 17.89%

Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next three years, with the growth rate falling off to a constant 4 percent thereafter. If the required return is 10 percent, and the company just paid a dividend of $2.65, what is the current share price

Answers

Answer:

$87.03

Explanation:

Calculation to determine the current share price

First step is to calculate p1

p1= $2.65(1+.30)^3(1+.04) / (.10 - .04)

p1= $2.65(1.30)^3(1.04) / (.10 - .04)

p1=6.054932/.06

p1=100.92

Now let calculate the Current price

p0= [$2.65(1.30) / 1.10] +[$2.65(1.30)^2 / 1.10^2] + [$2.65(1.30)^3 / 1.10^3] + [$100.92/ 1.10^3]

p0=3.1318+4.4782/1.21+5.82205/1.331+$100.92/1.331+

p0=3.1318+3.700992+4.37419+75.82

p0=$87.03

Therefore the current share price is $87.03

Given the following information, determine the amount of cash on the balance sheet, assuming that the company has only three assets.

Liabilities equal $3,350
Owner's equity equals $28,000
Supplies equal $2,000
Land equals $23,500

Answers

Answer:

Cash balance = $5850

Explanation:

Below is the given values and calculations:

Liabilities  = $3350

Equity = $28000

Supplies = 2000

Land = $23500

Cash on the balance sheet can be determined by subtracting the sum of supplies and land from the sum of liability and equity.

Cash balance = (28000 + 3350) - (2000 + 23500)

Cash balance = $5850

Your uncle repays a $150 loan from Tenth National Bank (TNB) by writing a $150 check from his TNB checking account. Assume these funds are the only loans and deposits available for your uncle and the bank.

Required:
Write the T-account table.

Answers

Answer: See explanation

Explanation:

The T-account for your uncle before the loan is repaid will be:

Your Uncle:

Assets: Bank accounts $150

Liabilities: Loan $150

Tenth National Bank

Assets: Loan and advance $150

Liabilities: Deposits $150

The T-account and TNB for your uncle after the loan is repaid will be:

Your Uncle

Assets: Bank account $0

Liabilities: Loan $0

Tenth National Bank

Assets: Loan and advance $0

Liabilities: Deposits $0

When the price of paintings is set at $500, the local art gallery supplies 20 paintings per week. When the price of paintings increases to $750, the gallery supplies 25 paintings. Calculate the price elasticity of supply using the mid-point formula. Instructions: Round your answer to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. The price elasticity of supply is: .

Answers

Answer:

the  price elasticity of supply is 0.555

Explanation:

The computation of the price elasticity of supply is given below:

= Percentage change in quantity supplied ÷ percentage change in price

= (25 - 20) ÷ (25 + 20) ÷ 2 ÷ (750 - 500) ÷ (750 + 500) ÷ 2

= 5 ÷45 ÷ 250 ÷ 125

= 0.555

Hence, the  price elasticity of supply is 0.555

The same is relevant

Other Questions
So i have to make trial balance and im kinda confused with 'interest'. So which side did it go to? Credit or debit? It didn't state the interest as received or expense/paid. someone told me to look at the bank but hey i need more explanation T^T what do you think is the main idea of the essay explicit or implicit? What is the correct order of amino acid if the sequence of bases on DNA were as follows: C-C-T-C-G-A-T-T-C-A-T-G glycine, alanine, lysine, tyrosine2) alanine, proline, lysine, tyrosine3) valine, aspartate, glycine, proline4) aspartate, glycine, serine, valine i genuinely dont know help pleas help me im on the struggle bus Week 3 Short Responses Question 3 The National American Woman Suffrage Association supported the U.S. decision to enter World War I and publicly encouraged women to support the war effort. Was this a necessary or a contributory cause of the success of the woman suffrage movement? When a marble is dropped into a beamer of water Write the relation of M3 with its multiples give a short introduction of carl von linnaues and rh whittakers regarding classification of living beings one major point Discuss the assertion that non-formal institutions have no role to play at the processing stage of the systems theory is an empty rhetoric. Beauty calls and gives no warnin, figurative language? Tangerine, Inc. provides the following data: Surround, Inc. Comparative Balance Sheet Dec. 31, 20X9 Assets Current Assets: Cash and Cash Equivalents $29,000 Account Receivable, Net 31,000 Merchandise Inventory 53,000 Total Current Assets $113,000 Property, Plant, and Equipment, Net 120,000 Total Assets $233,000 Liabilities Current Liabilities: Accounts Payable $4000 Notes Payable 3000 Total Current Liabilities $7000 Long-term Liabilities 84,000 Total Liabilities $91,000 Stockholders' Equity Common Stock $30,000 Retained Earnings 112,000 Total Stockholders' Equity $142,000 Total Liabilities and Stockholders' Equity $233,000 Calculate the debt to equity ratio. [tex]3x + 9 = 12[/tex]Solve for x find x 2 ^30 divided by 8^9= 2x The point slope formula (if possible) to write an equation of the line given the following informationwe The question 4 down , can you help me guys? Pls help .ZZZZZZZZA use the formula v=u+at to find the velocity when the initial velocity is 3m/s2 the time is 7 seconds Select All the correct answersSelect all the statements that are true for the following systems of equations.System A2x-3y=44x.y = 18System B3x - 4y 5y = 5x + 3System C2x-3y - 412x-3y 541. All three systems have different solutions.2. Systems A and B have different solutions3. Systems A and C have the same solution4. Systems B and C have the same solution5. System C simplifies to 2x - 3y = 4 and 4x - y = 18 by dividing the second equation by three __________Are the subunits making up nucleic acids