1. ( A ) What is the WACC (weighted cost of capital) for a company if it borrows from two sources: bank loan of 25 million at 6% per compounded monthly, and retained earning of 10 million with earnings per share of 35 cents and price per share 14.00 dollars. Income tax rate is 35%.
( B )When using the “longest life” planning horizon what issue (or issues) might you have to consider for alternatives whose cash flow profiles are shorter than the “longest life”?
- Choice a determination of salvage values for any truncated cash flows
- Choice b the validity of the assumption that cash flow profiles are repetitive
- Choice c both choice a and choice b
- Choice d Neither choice a nor choice b
( C ) . What is the future worth of the following: At t = 1 you deposit 10,000 At t= 2 you deposit 10,500 . Every year you increase your deposit amount by 500. This goes on until t = 60. I = 6%. How much is in the account at t = 60?
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Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method based on an estimated useful life of ten years and an estimated The estimated value of a fixed asset at the end of its useful life.residual value of $680.
a. What was the The systematic periodic
transfer of the cost of a fixed asset to an expense account during
its expected useful life.depreciation for the first year?
$
b. Assuming the equipment was sold at the end
of year 2 for $8,090, determine the gain or loss on the sale of the
equipment.
$ Loss
Feedback
Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.
Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain.
Learning Objective 3.
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
Cash
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Accumulated Depreciation-Equipment
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Loss on Sale of Equipment
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Equipment
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Measuring Cost Behavior
Month Setup Hours (X) Setup Costs (Y)
January 100 $1,000
February 200 1,250
March 300 2,250
April 400 2,500
May 500 3,750
What is the variable cost per unit using least-squares regression?
A. $4.50
B. $6.75
C. $7.25
D. $8.95
What is the fixed cost using least-squares regression?
A. $100
B. $105
C. $125
D. $135
What is the total cost at a level of 800 setup hours using least-squares regression?
A. $4,235
B. $4,765
C. $4,985
D. $5,525
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Determine the depreciation of the equipment with a cost of 560,000.00
For a period of 6years life the salvage value is 5% of the cost. use 3 methods of depreciation. If you want to resale the machine on the 3rd year which method you will use and why.
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wite a paper on the cost of quality in a medical device company.
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Why does nitrogen assimilation in plants cost energy?
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Explain the implications of this decision on inventory, transportation and facilities cost
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Programming
How does readability can affect cost?
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