We must create a manual to know how to evaluate a company project variable costs and...

We must create a manual to know how to evaluate a company project

variable costs and fixed costs?

depreciation?

how to determine waac?

Expert Solution

Variable cost is the cost that varies with the change in the output of the company. Per unit variable remains fixed whereas, the total variable cost changes with the change in output. The total variable cost is calculated by multiplying the number of units produced by the per unit variable cost.

Fixed cost is the cost that remains the same at all levels of output of the company. Per unit fixed cost varies with the level of output. The total fixed cost is already given and the per-unit fixed cost is calculated by dividing the total fixed cost by the number of units produced.

Depreciation is the deduction on the fixed assets of the company. As the fixed assets of the company loses their value, to compensate the loss of the value of asset over time, depreciation is required to be applied on the asset.

Methods of depreciation are:

Straight line method represents the fixed amount of deduction from the asset of the company.

Written down method represents a fixed percentage of value of assett is deducted s depreciation over period of time.

Weighted average cost of capital represents the average rate that the company is expected to pay to its shareholders in order to finance the assets of the company.

Formula for Weighted average cost of capital:

WACC= (Weighted of equity * Cost of equity) + (Weighted of debt * Cost of debt) *(1-Tax rate)

ekkarill92 answered 2 years ago

We know how difficult it is to find a convincing instrumental variable Zi to overcome the...

We know how difficult it is to find a convincing instrumental variable Zi to overcome the “unobserved ability” problem in a wage regression to measure the returns to education. Critically discuss whether Zi =”distance in miles of high school location of workeri to closest four year college”satisfies the two properties of a valid instrument.

create a project and in it a class with a main. We will be using the...

create a project and in it a class with a main. We will be using the Scanner class to read from the user. At the top of your main class, after the package statement, paste import java.util.Scanner; Part A ☑ In your main method, paste this code. Scanner scan = new Scanner(System.in); System.out.println("What is x?"); int x = scan.nextInt(); System.out.println("What is y?"); int y = scan.nextInt(); System.out.println("What is z?"); int z = scan.nextInt(); System.out.println("What is w?"); int w = scan.nextInt();...

b. How can we understand and evaluate the cash position of a company?

We want to know whether an independent variable (room temperature) affects scores on a dependent variable...

We want to know whether an independent variable (room temperature) affects scores on a dependent variable (ratings of anger). The levels of the IV are hot and cold and the DV is measured on an anger scale (ranging from 0 no anger to 10 high anger). A random sample of subjects has been taken from the universe. Half of the subjects are randomly placed in the hot room while the other half are placed in the cold room. The samples...

Illustrate the total cost graph. You must include total costs, variable costs and fixed costs.

To evaluate competitive advantage, we must be able to assess the firm's performance -- are they...

To evaluate competitive advantage, we must be able to assess the firm's performance -- are they financially successful? Choose a publicly traded company(Microsoft, Amazon etc).For this company and the company's main competitor create a Table/Chart AND a graph in Excel reporting the following information for 2016-2018 : Gross Revenues (sales), Gross Profits, Net Profits, Net Profit Margin and Stock Price. In addition to the table and a graph, write a 1 or 2 paragraph summary of it's financial health. Calculate...

CVP discusses fixed and variable costs. However, we also have mixed costs have both a variable...

CVP discusses fixed and variable costs. However, we also have mixed costs have both a variable and fixed cost component. For example, many overhead costs operate like that. For example, electricity usually has a base charge and then it has a usage charge. So, what do we do with those costs in CVP? Does this mean we can't use for companies with mixed costs?

2. Because Chapter 14 HDEV focuses largely on relationships and social development we must evaluate how...

2. Because Chapter 14 HDEV focuses largely on relationships and social development we must evaluate how people choose or choose not to pair up. Please start your post by reflecting on whether or not you think you will get married. What are the reasons you personally would make the decision to marry or not marry? If you are already married, what were the reasons that convinced you to marry the person you chose? What is homogamy and what role does...

What three financial statements have we created? In what order must we create them? Why must...

What three financial statements have we created? In what order must we create them? Why must they be created in that order?

In this period of Coronavirus Pandemic how should we evaluate the corporate governance of a company?...

In this period of Coronavirus Pandemic how should we evaluate the corporate governance of a company? It is different from traditional evaluation? What should the current ratio of a business be? Does the industry really matter? Why did you answer as you did? We say that "the greater the risk, the greater the return should be." What do we mean? Does managing the risk change the required return?

Question