1- The weighted average cost of capital is 9.08%, 2- the net present value of the project is -$10.10 million, and 3-NEC should not accept the project since the NPV is negative.
1. Calculation of the weighted average cost of capital (WACC):
WACC = (E/V) * Re + (D/V) * Rd * (1 - Tc)
Where:
E = market value of equity
V = market value of equity + market value of debt
Re = cost of equity
D = market value of debt
Rd = cost of debt
Tc = tax rate
Market value of equity = Number of shares * price per share = $0 (Since the problem doesn't provide this information)
Market value of debt = Total project cost = $45.08 million
D/V = 80% (Given)
E/V = 1 - D/V = 20%
Re = 11.6% (Given)
Rd = 7.7% (Given)
Tc = 34% (Given)
Therefore, the WACC = (0.20 * 0.116) + (0.80 * 0.077 * (1 - 0.34)) = 0.0908 or 9.08%
2. Calculation of the net present value (NPV) of the project:
NPV = Present value of cash inflows - Initial investment
Initial investment = Total project cost = $45.08 million
Unlevered cash flows = $3.18 million
PVIFA (Perpetuity, 9.08%, 1) = 1 / 0.0908 = 11.00
Present value of cash inflows = Unlevered cash flows * PVIFA = $3.18 million * 11.00 = $34.98 million
Therefore, the NPV = $34.98 million - $45.08 million = -$10.10 million
So, the net present value (NPV) of the project is -$10.10 million.
3. Since the net present value (NPV) of the project is negative, NEC should not accept the project. Therefore, the answer is (a) No.
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Select the correct answer from each drop-down menu.
What are two examples of management information systems?
The management information system revolves around internal information flow. Two examples of a management information system are
and
Answer:
enterprise resource system
What is the estimated total manufacturing overhead in the Assembly Department? Assembly Packaging Direct labor-hours 5,200 62,000 Machine-hours 68,400 11,900 Total fixed manufacturing overhead cost $ 390,000 $ 419,000 Variable manufacturing overhead per DLH $ 3.75 Variable manufacturing overhead per MH $ 3.00
The estimated total manufacturing overhead in the Assembly Department $595,200 Estimated total manufacturing overhead = $390,000 + ($3.00 per DLH × 68,400 MHs) = $595,200.
What is the calculation?Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation.
Assembly Packaging Direct labor-hours = 5,200 62,000
Machine-hours = 68,400 11,900
Total fixed manufacturing overhead cost= $ 390,000 $ 419,000
Variable manufacturing overhead per DLH $ 3.75
Variable manufacturing overhead per MH $ 3.00
Assembly Department = $595,200 Estimated total manufacturing overhead = $390,000 + ($3.00 per DLH × 68,400 MHs) = $595,200.
Therefore the estimated total manufacturing is $595,200.
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Larry works 60 hours a week as a valet. If full-time employment is considered 40 hours per week, how many hours of overtime does Larry work?
Answer:
20 hours overtime
Explanation:
If Larry works 60 hours, take 40 hours out of that to get 20 hours which would be how much he works overtime.
which of the following will help to prevent bank runs
Measures to prevent bank runs include deposit insurance, prudential regulations, central banks acting as lenders of last resort, and effective communication and transparency from banks.
Bank runs can have severe consequences for both individual depositors and the overall stability of the banking system. To prevent bank runs, several measures have been implemented:
deposit insurance: One effective measure is the establishment of deposit insurance. Deposit insurance guarantees that depositors will be reimbursed up to a certain amount if a bank fails. This provides confidence to depositors and reduces the likelihood of a bank run.prudential regulations: Prudential regulations require banks to maintain a certain level of capital and liquidity. These regulations ensure that banks have enough resources to meet their obligations and reduce the risk of insolvency. By maintaining financial stability, prudential regulations help prevent bank runs.central bank as lender of last resort: Central banks act as lenders of last resort, providing emergency liquidity to banks in times of crisis. This ensures that banks have access to funds even during periods of financial stress, reducing the likelihood of bank runs.effective communication and transparency: Banks can also prevent bank runs by maintaining effective communication and transparency with their depositors. By providing clear and accurate information about their financial health and stability, banks can build trust and confidence among depositors, reducing the likelihood of a bank run.Learn more:About prevent bank runs here:
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jim buys a perpetuity of 100 per year, with the first payment 1 year from now. the price for the perpetuity is 975.61, based on a nominal yield of i compounded semiannually. immediately after the second payment is received, the perpetuity is sold for 1,642.04, to earn for the buyer a nominal yield of j compounded semiannually.
The price of the perpetuity is $975.61, with a nominal yield of i compounded semiannually. The perpetuity is sold for $1,642.04 after the second payment, to earn a nominal yield of j compounded semiannually.
Jim buys a perpetuity for $100 per year, with the first payment to be received 1 year from now. The price of the perpetuity is $975.61, based on a nominal yield of i compounded semiannually. After the second payment is received, the perpetuity is sold for $1,642.04. The buyer of the perpetuity wants to earn a nominal yield of j compounded semiannually.
The annual interest rate that the issuer agrees to pay to the security holder, expressed as a percentage of the security's principal amount or par value, is known as the coupon rate of a fixed income security. The bond's name typically includes the coupon rate, such as "US Treasury Bond 6.25%."
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A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a.
A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a financial crisis.
A financial crisis occurs when the value of financial assets and instruments drastically declines. As a result, firms struggle to pay their debts, and financial institutions lack the cash or convertible assets needed to fund initiatives and take care of urgent demands.
Falling US housing values and an increase in the number of borrowers unable to make loan payments were the GFC's main causes. Around the middle of 2006, the supply of newly constructed homes in some places grew quickly, and house prices in the United States reached their peak.
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A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a financial crisis.
During a financial crisis, asset values endure a sharp decrease in value, firms are unable to pay their loans and financial institutions face a shortage of liquidity. During a panic or bank run, investors sell off their assets or withdraw cash from savings accounts out of fear that their value will decline if they keep them in a financial institution. This is a common feature of the financial crisis.
The deflation of a credit boom, a stock market collapse, a sovereign default or a currency crisis are further circumstances that could be classified as a financial crisis. A financial crisis might only affect certain banks, or it might affect the entire global economy or just one particular economy.
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Which of the following is a true statement?
1) FAS Market Development and Export Assistance partners with over 100 cooperator groups
2) FTC stands for Federal Trade Commission
3) FAS stands for Federal Agricultural Sector
4) Imports are goods produced in one country then shipped to another country
Answer:
2) FTC stands for Federal Trade Commission
Explanation:
The true statement is that, FTC stands for Federal Trade Commission.
The Federal Trade Commission (FTC) is an agency of the government of the United States of America saddled with the responsibility of promoting consumer protection and the enforcement of all civil antitrust laws.
Basically, the laws formulated or established by the FTC are to provide protection for consumers of various goods and services while requiring that businesses do not make false claims about them. Also, the Federal Trade Commission (FTC) is responsible for competition regulations among manufacturers of goods and services provided for the consumers.
WOULD YOU RATHER...?
Pay $40 cash up front for
a gift? I
OR
Purchase the gift on a
credit card and pay for it
later.
1. Write an explanation of your selection in the box below. Then, discuss your choice and
reasoning with a partner.
You want to own a photography studio and you open one that specializes in wedding
photography. After 6 months though, your studio fails and you close down. Read the
following scenarios and pick which one you think you should do next.
Answer:
Explanation:
Open another photography studio that specializes in wedding photography.
Open a photography studio that offers a wider range of services, such as portrait photography, event photography, and commercial photography.
Take a break from photography and explore other career options before deciding on your next steps.
Based on the information provided, it is not clear which of the above scenarios would be the best option for you. Each of these scenarios has its own advantages and disadvantages, and the right choice for you will depend on your personal goals, interests, and circumstances. For example, if you are passionate about wedding photography and believe that your previous studio failed due to external factors, then opening another studio that specializes in wedding photography may be a good option for you. On the other hand, if you believe that your studio failed because the market for wedding photography is saturated or because your services were not competitive, then expanding your portfolio to offer a wider range of services may be a better option. Alternatively, taking a break from photography and exploring other career options may allow you to gain new skills and experiences that can help you in your future endeavors.
What does the law of diminishing marginal utility explain?
The law of declining marginal utility asserts that if a person consumes increasingly more units of a certain product, the additional satisfaction they receive from each new unit will eventually decline, maybe even to the point where their marginal utility is negative.
What is marginal utility?A person's change in pleasure (or utility) when they consume one more unit of an item or service is known as marginal utility, according to the economics discipline. It is the actual advantage or satisfaction a person receives from consuming one more unit of an item or service, and it aids in determining the demand for that good or service. The marginal utility of a good is greatest at the point of consumption of the initial unit. The marginal utility falls down as individuals consume more units, finally reaching a point of declining marginal utility where each extra unit provides them with progressively less satisfaction. Understanding consumer behavior and the need for products and services depends on having a solid grasp of marginal utility.
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An architect’s functions may include which of the following? (SELECT ALL THAT APPLY.)
-planning and designing houses, commercial buildings, and other structures
-ensuring worksite safety
-collaborating with engineers
-acting as a construction manager and supervising contractors
Answer:
the answer is planning, ensuring, and acting
Type of energy classified as solids
Warren peace bookstore issues a note with no stated interest rate in exchange for a building. in accounting for the transaction:
Answer:
the options are missing, so I looked for them.
the options are:
The note is recorded at its face amount unless the fair value of the building is readily available. The building should be depreciated over the note’s term to maturity. Both the note and building are recorded at the fair value of the note or the fair value of the building, whichever is more clearly determinable. If fair values of the note and building are unavailable, the note should be recorded at its face amount.The correct answer is:
4. If fair values of the note and building are unavailable, the note should be recorded at its face amount.
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT?
All of the following, with the exception of conditions, are required.
Describe insurance.One party will agree to compensate another in the event of a certain loss, damage, or injury in exchange for a fee in order to safeguard oneself from financial loss. It is a risk management technique that is typically used to guard against the danger of a hypothetical loss that may or may not materialise.
An underwriter, insurer, firm, or carrier is a company that provides insurance. A person or organisation that obtains insurance is known as a policyholder, whereas a person or organisation that the policy protects is known as an insured.
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Do you agree or disagree that world history revolves around money? Why or why not?
Answer:
I agree
Explanation:
Battles and soldiers during the world wars both 1 and 2 were surrounded by money to me because for instance when Hitler was around he was only there for the money and if it wasnt bc of that it was bc of the aryan race
but thats besides the fact that i believe that history is a mixed up feelng of what happened in that time era
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If a person has $1,000 in a savings account and earns $20 a year in interest on that account, the rate of return on the money is close to
Answer:
2%
Explanation:
a. Competing/Forcing style.
7. This style of conflict resolution sees personal goals as more important than the goals of others.
The answer to this question is the Competing/Forcing style. The Competing/Forcing style of conflict resolution is a confrontational and assertive approach where an individual or group pursues their goals and objectives at the expense of others.
In this style, personal goals are seen as more important than the goals of others, and the focus is on winning and achieving one's objectives
This style may be effective in situations where quick decisions need to be made or in situations where one party needs to take a firm stand. However, it can also lead to damaged relationships, reduced trust, and negative emotions. It may not be the best approach when the parties involved need to maintain a positive and collaborative working relationship.
It is important to note that conflict resolution styles should be adapted to fit the situation at hand. A skilled communicator will be able to use a variety of styles to achieve positive outcomes in different circumstances.
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The statement is partially correct. The style of conflict resolution referred to is Competing/Forcing style, which prioritizes personal goals over the goals of others. However, the statement does not accurately reflect the entire style.
The Competing/Forcing style of conflict resolution is characterized by a high concern for one's own needs and goals and a low concern for the needs and goals of others. This style involves using assertive and aggressive behavior to pursue personal goals, often at the expense of others. The goal is to win the conflict and assert dominance over the other party.
However, it is important to note that there are situations where this style of conflict resolution may be appropriate, such as in emergency situations or when quick, decisive action is needed. In most cases, however, the Competing/Forcing style can create more problems than it solves, and it is often more effective to use a collaborative or compromising approach that takes into account the needs and goals of all parties involved.
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how might a resent college graduates investment portfolio differ from someone who is nearing retirement
Answer:
see below
Explanation:
Someone about to retire has more experience in investing, which will show in their portfolio. They have developed an investment strategy that guides them in making investment decisions. Consequently, they have a justification for investing in a particular asset and have an estimate of how much returns to expect. Some about to retire will have a huge and profitable portfolio.
A recent college graduate will want to try their hand at almost every investment opportunity. They have not developed a clear investment criterion. They do not allow their investment time to generate expected returns as they are always in a rush to make profits. Due to their inexperience, their portfolios are full of many transactions that yield little profits and losses.
a company blog gathers information from a group of people on various product lines. for example, everyone who has purchased or had experience with a product can post a review. this is an example of a(n) communication network.
In a company, everyone who has purchased or had experience with a product can post a review. This is all-channel network communication.
In a all-channel communication network is a pattern that allows all members or employees to communicate with each other.
The communication network, the structure and flow of communication and information between within a group which helps a company employee brainstorm and collaborate information from a group of people on various product lines everyone who has purchased or had experience with a product can post a review.
This all-channel network does not have a direct leader. So, communication occur between employees.
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Which savings option is best for Vincent? Use the PACED decision-making method and show your work
For Vincent, conducting online savings makes the most sense.Show your work and use the PACED decision-making process.
a resource that can assist managers in taking quick, sensible decisions. The problem, choices, criteria, evaluation, and decision stages make up the model. Even when the KPIs have distinct data formats, sizes, and/or seasonal trends, pace charts are a different bullet graph design that normalises progress to goal visualisations across KPIs. problem identification, information search, assessment of different options, choice of purchase, and post-purchase analysis.
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When would job-order costing be used instead of process costing?
A job order gadget is utilized by very precise kind of businesses for costing be used instead of process costing.
Those corporations do no longer manufacture trendy products and stock them to promote to clients.
as a substitute they take orders. which means that the product is custom constructed as in keeping with the necessities of the clients. This makes job order costing hard considering the fact that in a employer that manufactures preferred products, the production can be recognized in advance and overheads may be allocated amongst merchandise. however in case of job order costing , determining what the overheads might be for the following accounting period is extraordinarily subjective and at risk of errors.corporations that comply with job order costing can't determine the exact quantity of expenses that they may incur. some of their overheads can be general and required to run the commercial enterprise while a few others may be depending on the job being performed. companies that carry out these jobs can not realize the precise costs before the process is truely finished.one of the most important problems in job order costing is the mismatch among when the citation is made and whilst the fees absolutely come to be known. costs want to be quoted earlier than beginning manufacturing. but, the prices are recognized simplest after the activity is completed.job order costing have to be used, while the manufacturing is done on particular orders.
as an example, an plane production organization or a deliver production business enterprise will make the plane or deliver best in opposition to a selected order from the client. For that particular order, the costing is accomplished below job-order costing.
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As soon as a bill is received, . a. a check is written and printed b. it is entered as a bill c. a check is written but it is not printed until the bill is due d. quickbooks deducts the amount due from the checking account
As soon as a bill is received, it is entered as a bill. As soon as the bill is reviewed by the person, the amount is directly deducted from the payer's account and the person who is taking the bill has entered into the bil account.
What is the difference between entering a bill and writing a check?Entering a bill or bill payable is the amount which is liable to be paid later in return for the services taken from the other person.
A check is a payment if the person has incurred the bill for the services or the item they have purchased. It does not involve a delay in payments.
Thus, option A is correct.
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You manage a department of five employees. You have identified that Joe has a high need for achievement, Mary has a high need for power, and Tim has a high need for affiliation. Sarah scored high on the need for power and low on the need for affiliation. Doug scored low on both need for power and need for affiliation.
21) Which of these five employees is most likely to be suitable for a new assignment that involves a high degree of personal responsibility and feedback?
A) Joe
B) Mary
C) Tim
D) Sarah
E) Doug
1. Why would a potential sponsor be interested in an organization's market reach?
Answer:
A potential sponsor would be interested in an organizations market reach because they want to know the estimated number of consumers the organization markets to. A sponsor isn’t interested in a small market
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Fatima works in a bakery and earns $120 per week. Fatima’s grandfather has given her $5,000. Fatima is going to use this money to start her own business. She is going to make cakes for special occasions such as birthdays, weddings, and religious
festivals.
1. Give an example for each of the four factors of production Fatima will use in her new business.
2. What is the ‘opportunity cost’ to Fatima of her decision to start her own business?
3. Is Fatima’s business meeting consumer ‘needs’ or consumer ‘wants’? Justify your answer.
1). The four factors that would be involved in Fatima's bakery business would be:
Land or the place where she would prepare and pack the cakes. Labor who would be involved in the production of the cakes. Capital that would be invested to incur the costs of the production. Entrepreneurship is the 'art of employing innovation and risk-taking in the business for making profits.'2). The opportunity cost of Fatima's decision to run her own bakery business would be her weekly earning of $120 per week as it is the cost of the most valuable forgone opportunity.
3). Fatima's business would assist the customers in meeting their 'wants' as she assists them in fulfilling their special and personalized demands for cakes for their various occasions like weddings, festivals, or birthdays and not for regular meals.
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Pineapple whip, a company that makes an ice cream-like treat using pineapple, sells its branding, production techniques, and proprietary flavors to other companies for a fee and a share of the profits. Pineapple whip is engaged in.
In this context, the Pineapple whip is engaged in a business arrangement called Franchising.
What is Franchising?Franchising is a business arrangement where the franchisor (one party) grants some rights and authorities to the franchisee.
In this case, the franchisee will pays a fee to the franchisor because he is using the business's success, trademarks, proprietary knowledge etc.
In conclusion, the Pineapple whip is engaged in a business arrangement called Franchising.
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NEED HELP AS SOON AS POSSIBLE
Answer:it is 10,000
Explanation:
Answer:
Q1: Total assets= 25,200
Q2: Total liabilities = 16,500
Explanation:
Q1: Add all your assets to get total assets
Q2: Add all your liabilities to get total liabilities
Q3: Your net worth, quite simply, is the dollar amount of your assets minus all your debts. You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth. Conversely, if your liabilities are greater than your assets, you will have a negative net worth.
25, 200-16,500=+8700
you are running low on funds, so you ask your best friend for a loan. to show him how serious you are, you offer your rolex watch as collateral. your friend gives you $500, and you give him your rolex to hold until you repay him, which you promise to do within three months. what do you think will happen if you refuse to repay the $500 to your friend? g
Refusing to repay a loan and offering collateral can lead to legal action, strained relationships, potential loss of collateral, and damage to your reputation. Honoring loan agreements is crucial for maintaining trust, preserving relationships, and upholding your financial integrity.
If you refuse to repay the $500 loan to your friend after offering your Rolex watch as collateral, several potential outcomes may occur:
1. Legal Action: Your friend may choose to take legal action against you to recover the loan amount. This could involve filing a lawsuit and potentially obtaining a court judgment against you. Legal action can result in additional costs, such as court fees and legal expenses.
2. Strained Relationship: Refusing to repay the loan can strain or damage your friendship. Money matters can be sensitive, and reneging on a loan agreement may lead to trust issues and resentment between you and your friend.
3. Loss of Collateral: Since you offered your Rolex watch as collateral, your friend may have the right to keep or sell the watch to recover the unpaid loan amount. If the value of the Rolex exceeds the loan amount, your friend may return any remaining funds to you after deducting the loan and any associated costs.
4. Reputation Impact: Failing to repay a loan can have consequences for your reputation, both within your personal network and potentially beyond. Word may spread about your failure to honor financial obligations, which could affect your credibility and ability to obtain loans or financial assistance in the future.
It is important to honor your commitments and fulfill loan repayment agreements to maintain trust, preserve relationships, and uphold your financial integrity. If you are facing financial difficulties, open and honest communication with your friend about your situation may lead to alternative solutions or renegotiation of the repayment terms.
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Who owns the TD bank? Is it the government?
How cash inflow and outflow affects the components of a financial plan