Calculate the NPV based on the scenarios in the table below:
|
Scenario |
Boom |
Average |
Weak |
Bust |
|
Probability |
0.15 |
0.40 |
0.35 |
0.10 |
|
Units Sold |
1,000 |
750 |
500 |
250 |
|
Unit Selling Price |
$11 |
$10 |
$8 |
$5 |
|
Revenue |
______ |
______ |
______ |
______ |
|
Variable Cost % of Revenue |
55% |
50% |
45% |
30% |
|
Variable Cost |
______ |
______ |
______ |
______ |
|
Fixed Cost |
1,000 |
1,000 |
1,000 |
1,000 |
|
Total Cost |
||||
|
Profit (Loss) = A |
______ |
______ |
______ |
______ |
|
NPV Factor = B |
3.25 |
3.25 |
3.25 |
3.25 |
|
NPV = A * B = |
______ |
______ |
______ |
______ |
Notes: 1. You do not need a discount rate because it is part of the NPV factor.
2. You will need to fill in the blanks in order to do this calculation.
NPV = __________
In: Finance
Winkler Furniture manufactures two different types of china cabinets A French Provincial model and a Danish Modern model. Each cabinet produced must go through three departments: Carpentry, Painting and Finishing. The table provided gives all of the production times per cabinet produced and production capacities for each operation per day along with net revenue per unit prodced.
The firm has a contract to produce a minimum of 60 cabinets per day. How many of each cabinet should the manufacturer make to maximize daily revenue.
Please show how to set up in excel and how to get the answer using solver in excel
In: Advanced Math
In: Economics
The following information was taken from the records of Cheyenne Inc. for the year 2017: Income tax applicable to income from continuing operations $177,616; income tax applicable to loss on discontinued operations $28,866, and unrealized holding gain on available-for-sale securities (net of tax) $22,100. Gain on sale of equipment $99,000 Cash dividends declared $152,500 Loss on discontinued operations 84,900 Retained earnings January 1, 2017 554,900 Administrative expenses 244,000 Cost of goods sold 770,600 Rent revenue 49,300 Selling expenses 292,100 Loss on write-down of inventory 66,200 Sales Revenue 1,747,000 Shares outstanding during 2017 were 93,500.
In: Accounting
2. Calculate Mean Absolute Error ( MAD) for the data in question 1 for the three methods used. Round MAD to two decimal places. ( 4 marks)
|
Year |
Revenue |
4-Year Moving Average |
Absolute Error |
4 Weighted Moving Average Weights 4,3,2,1 |
Absolute Error |
Exponential Smoothing α = 0.6 |
Absolute Error |
|
2010 |
75 |
||||||
|
2011 |
81 |
||||||
|
2012 |
74 |
||||||
|
2013 |
79 |
||||||
|
2014 |
69 |
||||||
|
2015 |
92 |
||||||
|
2016 |
73 |
||||||
|
2017 |
85 |
||||||
|
2018 |
90 |
||||||
|
2019 |
73 |
||||||
|
2020 Forecast |
What does MAD measures? which of these three forecasting methods provides better forecast of the revenue data ? ( 2 mark)
In: Statistics and Probability
Calculate the missing numbers that follow the list of account
balances. Enter the digits only - no dollar signs or commas.
Retained earnings at the beginning of the year is zero.
Supplies expense = 5800
Wages expense = 15500
Intangibles = 22300
Service revenue = 52000
Rent expense = 20600
Supplies = 2960
Accounts payable = 9200
Prepaid expense = 6580
Loan payable due in 2025 = 10800
Accounts receivable = 6840
Deferred revenue = 4100
Advertising expense = 5100
Owner's capital = 16800
Wages payable = 3300
Dividends = 1600
Cash = 8920
1. Total liabilities and equity?
2 . Total assets?
3 . Total liabilities?
4. Total equity?
In: Accounting
2. Consider the following demand schedule for widgets:
| Price ($ per widget) | Quantity (# per month) |
| 10 | 5 |
| 8 | 40 |
| 6 | 70 |
| 4 | 90 |
| 2 | 100 |
What is the price elasticity of demand for widgets between $8 and $10?______ What is the elasticity of demand between $2 and $4? ______ As price decreases, demand becomes more / less elastic. What is total revenue per month at a price of $4?______ A reduction in price from $4 to $2 causes total revenue to rise / fall because demand is elastic / inelastic. If price is currently $2, then a 1% increase in price will cause a______ percent increase / decrease in quantity demanded.
In: Economics
Barney owns a bagel business in New York City and he wants to increase his total revenue. He knows that, when bagels are $1, he sells 250 an hour, and when he lowers the price to $0.75, he sells 275 an hour. A) Using the midpoint method, compute the price elasticity of demand for Barney’s bagels. (show formula and all your calculations) B) Based on your answer to section A, is demand for Barney’s bagels elastic or inelastic? How do you know? Explain C) Based on your answer to section B, explain whether he should raise or lower the price to generate more revenue.
In: Economics
Question 3:
Depreciation is considered as accounting policy and operational
expense for the accounting period.
The value to be included in the financial statement is calculated
based on the decision of the Board.
(a) You are required to:
(i) Explain the difference between capital expenditure and revenue
expenditure, and how
each type of expenditure will affect the financial statements of a
business.
(ii) Explain why it is important to distinguish between capital
expenditure and revenue
expenditure, and briefly explain the accounting treatment of each
type of expenditure.
(iii) Under what circumstances will you consider the reducing
balance method as the most
appropriate method in calculating depreciation?
(b) Does depreciation decrease cash in a business? Explain your
answer.
In: Accounting
Nizwa Municipality operates a water utility service
for the residents, private and government
organizations in the locality to be charged with user fees. On
1.03.2019, the city acquires a water pump
costing OMR 6,000 to be used in the water distribution system. The
water utility revenue for the year
2019 was RO 40,000. The utility estimates that 8 % of its revenue
will be accounted as uncollectible.
The depreciation of the water pump is 15% per annum.
You are required to state for each of the transactions
above,:
The fund in which Fund these transactions will be recorded
Pass journal entries in each of the respective funds
Briefly explain the Basis of accounting, the accounting treatment
and the measurement focus
of these transactions in the respective funds where these
transactions are accounted.
In: Accounting