Windhoek Mines, Ltd., of Namibia, is contemplating the purchase of equipment to exploit a mineral deposit on land to which the company has mineral rights. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area: Cost of new equipment and timbers $ 370,000 Working capital required $ 115,000 Annual net cash receipts $ 130,000 * Cost to construct new roads in year three $ 43,000 Salvage value of equipment in four years $ 68,000 *Receipts from sales of ore, less out-of-pocket costs for salaries, utilities, insurance, and so forth. The mineral deposit would be exhausted after four years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company’s required rate of return is 18%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: a. What is the net present value of the proposed mining project? b. Should the project be accepted?

Answers

Answer 1

Answer:

Windhoek Mines, Ltd., of Namibia

a. The net present value (NPV) of the proposed mining project is:

= -$117,258

b. No. The project should be rejected.  It has a negative NPV.

Explanation:

a) Data and Calculations:

Cost of new equipment and timbers = $370,000

Working capital required = $115,000

Cost to construct new roads in year three = $43,000

Annual net cash receipts = $130,000

Salvage value of equipment in four years = $68,000

Company's  required rate of return = 18%

Mining duration = 4 years

Annuity factor for 4 years at 18% = 2.1690

Relevant discount factors at 18%:

Year 3 = 0.712

Year 4 = 0.636

Present values of Cash Flows:

Transaction                                             Cash Flows  PV Factor  PV Amount

Cost of new equipment and timbers      $370,000    1.000       -$370,000

Working capital required                             115,000    1.000          -115,000

Cost to construct new roads in year three 43,000    0.712            -30,616

Annual net cash receipts                           130,000    2.169           281,970

Salvage value of equipment in four years 68,000   0.636             43,248

Working capital released                           115,000    0.636             73,140

Net present value                                                                         -$117,258


Related Questions

Customers exhibit a Poisson arrival distribution and the barber must provide an exponential service distribution. Market data indicates that customers arrive at a rate of 2 per hour. It will take an average of 20 minutes to give a haircut, and that business would remain unchanged with customers arriving at a rate of two per hour. Find the following information to help Benny decide if a second chair should be added:

a. The average number of customers waiting.
b. The average time a customer waits.
c. The average time a customer is in the shop.

Answers

Answer: the answer is b

Explanation:

Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system.
Apr. 1 Sold merchandise for $2,000, granting the customer terms of 2/10, End of Month; invoice dated April 1. The cost of the merchandise is $1,400.
Apr. 4 The customer in the April 1 sale returned merchandise and received credit for $500. The merchandise, which had cost $350, is returned to inventory.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.

Answers

Answer:

Apr 01

Dr Accounts receivable $2,000

Cr Sales $2,000

Apr 01

Dr Cost of goods sold $1,400

Cr Merchandise inventory $1,400

Apr 04

Dr Sales returns and allowances $500

Cr Accounts receivable $500

Apr 04

Dr Merchandise inventory $350

Cr Cost of goods sold $350

Apr 11

Dr Cash $1,500

Cr Accounts receivable $1,500

Explanation:

Preparation of the journal entries to record each of the following sales transactions of a merchandising company

Apr 01

Dr Accounts receivable $2,000

Cr Sales $2,000

Apr 01

Dr Cost of goods sold $1,400

Cr Merchandise inventory $1,400

Apr 04

Dr Sales returns and allowances $500

Cr Accounts receivable $500

Apr 04

Dr Merchandise inventory $350

Cr Cost of goods sold $350

Apr 11

Dr Cash $1,500

Cr Accounts receivable $1,500

($2,000-$500)

Blossom Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Miles Driven Total Cost Miles Driven Total Cost
January 6,400 $11,320 March 6,800 $12,000
February 6,000 10,800 April 6,560 11,592

Required:

Compute the variable cost per mile using the high-low method.

Answers

Answer:

just add and subtract the last three numbers and theres your answer love <3

Explanation:

Blue Spruce University sells 4,500 season basketball tickets at $140 each for its 12-game home schedule. Give the entry to record (a) the sale of the season tickets and (b) the revenue recognized after playing the first home game.

Answers

Answer:

a. Total revenue received:

= 4,500 * 140

= $630,000

Date                 Account Title                                           Debit              Credit

XX-XX-XXXX  Cash                                                     $630,000

                        Unearned revenue                                                     $630,000

Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.

b. The revenue per game is:

= 630,000 / 12 games

= $52,500

Date                 Account Title                                           Debit              Credit

XX-XX-XXXX   Unearned Revenue                             $52,500

                        Revenue - Ticket Sales                                               $52,500

A project manager is looking over the actual results of projects and comparing them to what was estimated. She notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is she recognizing?

a. Padding estimates
b. Planning horizon
c. Project structure
d. People
e. Organization culture

Answers

The factor that she recognized is the project structure.

The information related to the project structure is as follows:

It is an organizational framework in which the employees could functions on the project on a continuity basis. The team should perform all types of works here.Here the efforts should be considered with regard to the development that could be completed.

So the following factors should not be recognized:

Padding estimates.Planning horizon.People.Culture of an organization.

Therefore we can conclude that the factor that she recognized is the project structure.

Hence, the correct option is c.

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The book value of long-term assets is reported on:

Answers

The book value of long-term assets is reported on: the balance sheet.

if this helped please give me brainliest

The cost of leather used to produce leather jackets falls by 30%. This will result in ________.
a. a decrease in demand.
b. an increase in the quantity demanded.
c. an increase in demand.

Answers

I believe the answer to your question is C

There are different kinds of cost. The above scenario will result in an increase in demand.

A reduction in the price of leather jackets often makes more people to buy leather jackets, hence reducing the demand for sweatshirts.

If the price of a good is said to falls, the quantity supplied of that good also decreases. The lower the price, the more the demand for that product.

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Consider the following potential events that might have occurred to Global on December 30, 2010. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt. Which of the following statements is correct?

a. Global used $20.9 million of its available cash to repay $20.9 million of its long-term debt.
b. A warehouse fire destroyed $4.8 million worth of uninsured inventory.
c. Global used $5.4 million in cash and $5.5 million in new long-term debt to purchase a $10.9 million building.
d. A large customer owing $3.5 million for products it already received declared bankruptcy, leaving no possibility that Global would ever receive payment.
e. Global's engineers discover a new manufacturing process that will cut the cost of its flagship product by more than 55%
f. A key competitor announces a radical new pricing policy that will drastically undercut Global's prices.

Answers

Answer:

a. Global used $20 million of its available cash to repay $20 million of its long-term debt.

Explanation:

George has been selling 8,000 T-shirts per month for $8.00. When he increased the price to $9.00, he sold only 7,000 T-shirts.
Which of the following best approximates the price elasticity of demand?
A. -1.2467
B. -1.02
C. -0.5667
D. -1.1333
Suppose George's marginal cost is $3 per shirt.
Before the price change, George's initial price markup over marginal cost was approximately
A. 0.5625
B. 0.375
C. 0.625
D. 0.6875
George's desired markup is?
A. 1.3235
B. 0.7941
C. 0.9706
D. 0.8824
Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).

Answers

Answer:

a. The best approximates the price elasticity of demand is -1.1333. Therefore, the correct option is D. -1.1333.

b. George's Initial price markup over marginal cost = 0.625. Therefore, the correct option is C. 0.625.

c. George's desired markup = 0.8824. Therefore, the correct option is D. 0.8824.

d. Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.

Explanation:

a. Which of the following best approximates the price elasticity of demand?

Price elasticity of demand = Percentage change in quantity demanded / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity demanded = {(New quantity demanded – Old quantity demanded) / [(New quantity demanded + Old quantity demanded) / 2]} * 100 = {(7000 - 8000) / [(7000 + 8000) / 2]} * 100 = -13.3333333333333%

Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(9 - 8) / [(9 + 8) / 2]} * 100 = 11.7647058823529%

Substituting the values into equation (1), we have:

Price elasticity of demand = -13.3333333333333% / 11.7647058823529% = -1.13333333333333

Approximated to 4 decimal places, we have:

Price elasticity of demand = -1.1333

This implies that the best approximates the price elasticity of demand is -1.1333.

Therefore, the correct option is D. -1.1333.

b. Suppose George's marginal cost is $3 per shirt. Before the price change, George's initial price markup over marginal cost was approximately.

George's Initial price markup over marginal cost = (Initial selling price - marginal cost) / Initial selling price = ($8 - $3) / $8 = 0.625

Therefore, the correct option is C. 0.625.

c. George's desired markup is?

George's desired markup = 1 / Absolute value of price elasticity of demand BEFORE approximation to 4 decimal places = 1 / 1.13333333333333 = 0.88235294117647

Approximated to 4 decimal places, we have:

George's desired markup = 0.8824

Therefore, the correct option is D. 0.8824

d. Since George's initial markup, or actual margin, was (LESS OR GREATER) than his desired margin, raising the price was (PROFITABLE OR NOT PROFITABLE).

George's Initial price markup over marginal cost = 0.625

George's desired markup = 0.8824

Therefore, we have:

Since George's initial markup, or actual margin, was LESS than his desired margin, raising the price was PROFITABLE.

Common property resources like fish stocks in open waters tend to be overutilized because :________.
A. the marginal social cost is always equal to the private marginal cost.
B. the marginal social cost is less than the private marginal cost.
C. the marginal social cost is greater than the private marginal cost.
D. none of the above.

Answers

Answer:

C. the marginal social cost is greater than the private marginal cost.

Explanation:

In the case when there is common property resources such as the fish stock that lies in the open waters should be overutilized as the marginal social cost should be more than the private marginal cost because if there is high utlization so it will make the problem in the environment also the cost should be borne by the present and upcoming generations

Therefore the option c is correct

Electronic communication:_____.
a. prevents gossip, insults, threats, harassment, and the release of confidential information.
b. enables participants to pick up on subtle, nonverbal, or inflectional clues.
c. always leads to more satisfying negotiations.
d. requires lessening participation in communication to fewer people.
e. can reduce time and expenses devoted to traveling.

Answers

Electronic communication can reduce the time and expenses devoted to traveling. option (E) is correct.

What is communication?

The transfer of information is the standard definition of communication. The phrase may also be used to describe the message sent through such transmissions or the area of research that focuses on them. There are several differences of opinion regarding its exact definition.

Any form of communication that is broadcast, transmitted, stored, or viewed using electronic media, such as computers, phones, email, and video, is referred to as electronic communication. But each has a particular purpose and is more appropriate in certain circumstances. A few types of electronic communication include email, instant messaging, websites, blogs, text messages, voicemail, and video messaging.

Therefore, option (E) is correct.

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The rate of earnings is 6% and the cash to be received in 4 years is $20,000. The present value amount, using the following partial table of present
value of $1 at compound interest is
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751
0.712
4
0.792
0.683
0.636
a. $12.720
Ob. $16,800
Oc. 513,660
Od. $15.840

Answers

Answer:

$15,840

Explanation:

Present value = Future value / (1 + r)^n

Rate, r = 6% = 0.06

Future value = $20,000

Number of years, n = 4

Present value = $20000 / (1 + 0.06)^4

Present value = $20000 / 1.06^4

Present value = $20,000 / 1.26247696

Present value = $15841.873

Using the partial table of present values :

Present value = Future value * PV(6%, 4)

PV at 6%, 4 years = 0.792

Present value = $20,000 * 0.792 = $15,840

Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $17, direct labor $6, variable manufacturing overhead $3, fixed manufacturing overhead $19, variable selling and administrative expenses $1, and fixed selling and administrative expenses $13. Using a 30% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

Answers

Answer:

the target selling price is $76.70

Explanation:

The computation of the target selling price is shown below:

= Total cost + 1 × markup percentage

= ($17 + $6 + $3 + $19 + $1  + $13)  × (1.30)

= $76.70

hence, the target selling price is $76.70

We simply applied the above formula so that the target selling price could be determined

A financial analyst learns that the Bank of England has just issued a new bond that promises to pay £1,000 in one year’s time when it matures. If the market interest is 5% per year,
(a) Calculate the no-arbitrage price of the bond.
(b) If the bond is trading for £952.20 at the moment, what trading strategy should
the financial analyst follow?
(c) What do you think will happen to the bond’s price?

Please explain any formulas or theories used, thanks a lot!

Answers

Answer:

the price will go lower and I know how much it would be

U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year

Answers

Answer:

$5.5228 million

Or

$5,522,800

Explanation:

First, calculate the present value of all cash outflows

Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )

Where

Initial cost = $13 million

Year 1 cost = $10 million

Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696

Annual Cost = $1.2 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )

Present value of cash outflow = $13 million + $8.696 million + $6.0228 million

Present value of cash outflow = $27.7188 million

Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year

Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years

Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years

Where

Present value of Annual revenue = $27.7188 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Annual Revenue = $27.7188 million / 5.019

Annual Revenue = $5.5228 million

Annual Revenue = $5,522,800

Nate borrowed $38,672 from bank and his friends to expand his casino business. Nate set up an aim to pay $2,450 at the end of each week for 16 weeks. Assume each year has 52 weeks. What are the nominal rate per year and the effective interest rate per year?

Answers

Answer:

Hence, the Nominal annual rate is 20.28%.  

Effective annual rate is 22.43%.

Explanation:  

Amount borrowed = $38,672.  

Weekly repayment for 16 weeks = $2,500.  

Loan repayment = (Loan amount x r) / {1-(1+r)-n}  

$2,450 = ($38,672 x r)/{1-(1+r)-16}  

r= 0.39%  

Weekly interest rate = 0.39%  

Nominal annual rate = 0.39 % x  52 weeks = 20.28%  

Effective annual rate = [tex](1 + 0.0039^{52} ) - 1[/tex] = 0.2243 = 22.43%

Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Management targets an annual pre-tax income of $1,215,000. Compute the unit sales to earn the target pre-tax net income.

Answers

Answer: 9,495 units

Explanation:

First find the contribution margin:

= Sales price - Variable cost

= 540 - 324

= $216 per unit

The unit sales required can be calculated by the formula:

= (Annual pre-tax income target + Fixed cost) / Contribution margin

= (1,215,000 + 836,000) / 216

= 9,495.37 units

= 9,495 units

Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 6.00 per hour The company produced 4,600 units in January using 10,120 grams of direct material and 2,100 direct labor-hours. During the month, the company purchased 10,690 grams of the direct material at $7.20 per gram. The actual direct labor rate was $14.55 per hour and the actual variable overhead rate was $5.90 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:

Answers

Cara has just come in for her morning shift , but the sales floor is a mess . Looks like the night crew didn't clean up . She groans , but then gets to work cleaning the displays before customers come . If she doesn't , who else will ? What good problem - solving skills is she exhibiting? a ) Seeking advice when necessary Ob ) Open to seeing new perspectives c ) Having a solutions - oriented attitude

Stephani Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $53,000 and the total of the credits to the account was $69,000. Which of the following statements is true?

a. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000.
b. Actual manufacturing overhead incurred during the month was $56,000.
c. Manufacturing overhead applied to Work in Process for the month was $75,000.
d. Manufacturing overhead for the month was underapplied by $19,000.

Answers

Answer:

the manufacturing overhead for the month should be overapplied by $16,000

Explanation:

Given that

The debit to the manufacturing overhead is $53,000

And, the credit balance is $69,000

So, it should be overapplied by the

= $53,000 - $69,000

= $16,000

Therefore the manufacturing overhead for the month should be overapplied by $16,000

This is the answer but the same is not provided in the given options

Find the price a purchaser should be willing to pay for the given bond. Assume that the coupon interest is paid twice a year. $30,000 bond with coupon rate 4.4% that matures in 7 years; current interest rate is 6.8%.

Answers

Answer:

Bond Price​= $26,042.12

Explanation:

Giving the following information:

Coupon= (0.044/2)*30,000= $660

YTM= 0.068/2= 0.034

Time to maturity= 7*2= 14 semesters

Face value= $30,000

To calculate the price of the bond, we need to use the following formula:

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 660*{[1 - (1.034^-14)] / 0.034} + [30,000 /(1.034^14)]

Bond Price​= 7,256.14 + 18,785.98

Bond Price​= $26,042.12

Stock dividends distributable should be classified on the:________.
A) income statement as an expense.
B) balance sheet as an asset.
C) balance sheet as a liability.
D) balance sheet as an item of stockholders' equity.

Answers

Answer:

a) income statement as an expense

Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Bramble are 60000 Standard and 40000 Supreme. Fixed expenses are $2400000. How many Standards would Bramble sell at the break-even point

Answers

Answer:

160,000 units

Explanation:

Step 1 : Determine the Sales Mix

Bramble : Standard

60000 : 40000

3 : 2

Step 2 : Determine the Overall Break even Point

Break even Point = Fixed Cost ÷ Contribution per unit

                             = $2400000 ÷ $30

                             = 80,000

Step 3 : Determine break-even point for Standards

Standards Break even point = 80,000 x 2

                                               = 160,000 units

Thus,

Bramble Corp would sell 160,000 units of Standards at the break-even point

An important feature of a job order cost system is that each job:_______.
a. must be similar to previous jobs completed .
b. must be completed before a new job is accepted.
c. consists of one unit of output
d. has its own distinguishing characteristics .

Answers

Answer:

D

Explanation:

it has it's own distinguishing characteristics ....Form used to record the cost chargeable to a specific job and to determine the total and unit cost of the completed job

a) "Tranings are are the most important part of any occupation": justify it​

Answers

Answer:

Training is important because it represents a good opportunity for employees to grow their knowledge base and improve their job skills to become more effective in the workplace. Despite the cost of training for employees, the return on investment is immense if it is consistent.

There are several reasons it is important for employers to initiate training programs for their employees, such as:

It improves skills and knowledge

Employee training programs help improve the knowledge and skills of employees to match the various changes in the industry. These improvements will positively affect the productivity of workers, which can increase the profits and efficiency of an organization. Some of the things employees may learn through training include work ethics, human relations and safety.

It satisfies the recommendations of performance appraisal.

When an organization's employee performance appraisals suggest the need for improvement on a particular subject or skill, training programs can be organized for staff members to help satisfy this requirement. Training can therefore address an identified problem area and work toward a solution.

It prepares employees for higher responsibilities.

Training programs can also help prepare employees who are moving into higher roles and taking on more responsibilities in an organization. These programs will help them learn the skills that are required to function effectively in their new positions. For example, they may be trained in leadership skills or in a specific software they will use in their new role.

It shows employees they are valued.

Implementing training programs in the workplace will help employees feel like the company is invested in them. By continuing to teach your employees new skills and abilities, they will not just become better workers, they will feel like more productive members of the organization. This will improve their morale as well as their workplace capabilities.

It tests the efficiency of a new performance management system.

Employee training programs help an organization test the efficiency and effectiveness of a new performance management system, which will help HR establish clearer performance expectations. Using these systems to train your employees will reinforce the necessity of meeting goals and help employees better understand what is expected of them.

It improves IT and computer skills.

Training programs help employees learn about specific computer skills and IT topics, such as the use of software systems. Companies may train their employees to create graphs and spreadsheets, edit data in their database and understand network arrangements in order to provide a more comprehensive understanding of computers to improve workplace efficiency.

MC Qu. 74 Differential Chemical produced... Differential Chemical produced 12,000 gallons of Preon and 16,000 gallons of Preon. Joint costs incurred in producing the two products totaled $8,500. At the split-off point, Preon has a market value of $6.00 per gallon and Preon $3.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used.

Answers

Answer:

$5,100

Explanation:

The calculation of the portion of the joint cost for Preon allocation is shown below:

= Total joint cost for two products × (Preon cost ÷ Total cost)

Here,

Total joint cost = $8,500

Preon cost = 12,000 gallons × $6 per gallon = $72,000

And, the total cost is

= 12,000 gallons × $6 per gallon + 16,000 gallons × $3 per gallon

= $72,000 + $48,000

= $120,000

So, the allocated cost should be  

= $8,500 × ($72,000 ÷ $120,000)

= $5,100

= $4,500

You are the financial manager of the Crossrail 1 project in London. The Board overseeing the project, acting on behalf of the UK Government, has asked you to provide a financial analysis of the project for business planning purposes. With two years to go before the commencement of train operations, you have assembled the most recent estimates of the capital investment cost and net revenues, which were forecast 1 year ago. While the user benefits and ticket revenues are assumed to remain the same each year of the 60-year useful life, it is anticipated that maintenance costs will be higher in the final 30 years of the project. They are shown in Table.
Item of cash flow Today Each year (for the first Each year (for years
(£bn) 30 years) (£bn) 31 to 60) (£bn)
Capital investment -9.4
User benefits (Includes
Time savings, Traffic
congestion relief) 0.843 0.843
Ticket revenues 0.3 0.3
Operational costs and maintenance -0.422 -0.609
For projects such as Crossrail 1, the UK Government typically estimates a 60-year useful life and uses a discount rate of 3.5%.
a) What is the net present value (NPV) of the project?
a. "£15.04".
b. "£8.83".
c. "£7.36".
d. "£16.76".
b) What is the payback period of the project?
a. "13.04".
b. "8.22".
c. "17.60".
d. "7.49".
c) What is the internal rate of return (IRR) of the project?
a. "7.57%".
b. "7.35%".
c. "5.44%".
d. "6.52%".
d) Based on your calculations is Crossrail 1 a viable project at the discount rate?
a. "Yes".
b. "No".
You have been asked by the Board to present an analysis that incorporates more recent cash flow information about the Crossrail 1 project. Before the project becomes operational, the capital investment has been given a worse scenario estimate that is 35% above the forecast in table 1. The Board would like to see the analysis if the net cash inflows will also be 35% below expectation over the 60-year life whether under the existing hurdle rate of 3.5% it would remain viable.
a) What is the net present value (NPV) of the project?
a. "-£2.16".
b. "£4.78".
c. "£3.20".
d. "-£1.80".
b) What is the internal rate of return (IRR) of the project?
a. "2.72%".
b. "3.10%".
c. "1.79%".
d/ "0.67%".
c) Based on your calculations is Crossrail 1 a viable project at the discount rate?
a. "Yes".
b. "No".

Answers

Crossrail 1 project is about to start in London.

This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year  and it will continue to year 60 which is useful life of the project.

The NPV for the project will be 7.36 which is positive. The correct answer is c.

The payback period for project is 13.04 years which is given in the option a so correct answer is a.

The internal rate of return for the project is b. 7.35 .

Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.

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Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
managers on how to resolve the effects.

Answers

For a high-risk investment, managers require a high reward.

explain business with two Examples

Answers

Explanation:

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Example Coca-Cola, Amazon etc.

Answer:

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. ... There are various forms of a business, such as a limited liability company (LLC), a sole proprietorship, a corporation, and a partnership

Exercise 19-17 (Algo) EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options [LO19-5, 19-6, 19-7, 19-8] On December 31, 2020, Berclair Inc. had 380 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 96 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $600 million. Also outstanding at December 31 were 30 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2020, for 30 million common shares at an exercise price of $56 per share. During 2021, the market price of the common shares averaged $70 per share. Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)

Answers

Answer:

Berclair Inc.

Basic earnings per share = $1.87

Diluted earnings per share = $1.70

Explanation:

a) Data and Calculations:

                                             Common Stock     Cumulative Preferred Stock

Dec. 31, 2012 Outstanding     380,000,000           4,000,000 shares

Dividend rate                                                                              9%

Stock par value                                                                         $100

Total value of stock                                                                $400 million

Annual preferred dividend                                   $36 million ($400 m * 9%)

March 1, 2021 Treasury stock (96,000,000)

July 1, 2021 Stock dividend       14,200,000 (284,000,000 * 5%)

October 1, 2021 Treasury stock 4,000,000

Outstanding shares               302,200,000         4,000,000 shares

Stock options                           30,000,000

Total shares and options      332,200,000

Net income for the year = $600,000,000

Preferred stock dividend       36,000,000

Earnings for available for

common stockholders     $564,000,000

Basic earnings per share = $1.87 ($564,000,000/302,200,000)

Diluted earnings per share = $1.70 ($564,000,000/332,200,000)

On the Tokyo Stock Exchange, Honda Motor Company stock closed at ¥2,915 per share on Monday, June 6, 2016. Honda trades as an ADR on the NYSE. One underlying Honda share equals one ADR. On June 6, 2016, the ¥/$ exchange rate was ¥107.65/$1.00. (Round your answer to 2 decimal places.) At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR?

Answers

Answer:

$27.08

Explanation:

Calculation to determine the no-arbitrage U.S. dollar price of one ADR

Using this formula

No-arbitrage U.S. dollar price of one ADR=Stock closed per share /Exchange rate

Let plug in the formula

No-arbitrage U.S. dollar price of one ADR=¥2,915 / ¥107.65

No-arbitrage U.S. dollar price of one ADR=$27.078

No-arbitrage U.S. dollar price of one ADR=$27.08 (Approximately)

Therefore the no-arbitrage U.S. dollar price of one ADR is $27.08

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