Questions
A project with an initial cost of $24,800 is expected to generate cash flows of $5,900,...

A project with an initial cost of $24,800 is expected to generate cash flows of $5,900, $8,000, $8,750, $7,650, and $6,700 over each of the next five years, respectively. What is the project's payback period? Multiple Choice 3.28 years 3.39 years 3.49 years 3.75 years 3.65 years

In: Finance

Pfd Company has debt with a yield to maturity of 5.7%​, a cost of equity of...

Pfd Company has debt with a yield to maturity of 5.7%​, a cost of equity of 13.5%​, and a cost of preferred stock of 8.7%. The market values of its​ debt, preferred​ stock, and equity are $10.2 ​million, $2.6 ​million, and $15.2 ​million, respectively, and its tax rate is 40%. What is this​ firm's after-tax​ WACC?

In: Finance

Outline why the culture of a Country might influence the cost of doing Business in that...

Outline why the culture of a Country might influence the cost of doing Business in that Country. Illustrate your answer with examples.

In: Economics

Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for a...

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department
Bal., 7,000 units, 55% completed 17,815 To Finished Goods, 161,000 units ?
Direct materials, 165,000 units @ $1.5 247,500
Direct labor 235,800
Factory overhead 91,700
Bal. ? units, 60% completed ?

Cost per equivalent units of $1.50 for Direct Materials and $2.00 for Conversion Costs.

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period. $
2. Cost of units transferred to finished goods during the period. $
3. Cost of ending work in process inventory. $
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent. $

In: Accounting

Cost allocation is often the centerpiece of conflict that is resolved in court cases. The litigation...

Cost allocation is often the centerpiece of conflict that is resolved in court cases. The litigation usually involves the dispute over how costs are allocated to a product or product line that is of interest to the plaintiff. This is particularly an issue when a company produces some products or services for a price-competitive market while other products or services are produced for a governmental unit on a cost-plus or reimbursement basis.

Nursing Care Inc., or NCI, operates both a small nursing home and retirement home. There is a single kitchen used to provide meals to both the nursing home and retirement home, meaning labor costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cleaning department that provides the cleaning services for both homes as well as the kitchen. The nursing home serves only indigent patients who are on Medicaid. The state Department of Health and Family Services (DHFS) reimburses NCI at Medicaid-approved cost reimbursement rates. The Medicaid reimbursement rates are based on cost information supplied by NCI. The relevant cost and allocation data for the most recent year appear in the following table.

Annual Operating Cost
Cleaning department $ 135,000
Central kitchen $ 187,500
Allocation Base Kitchen Nursing Home Retirement Home
Square feet of space 1,000 2,000 3,000
Number of residents 6 4

Required:

1. Management of NCI currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. (Round percentages to two decimal places in your calculations.)

2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method. (Do not round percentage answers.)

In: Accounting

The production cost of x units of a product during a month is x ^ 2...

The production cost of x units of a product during a month is x ^ 2 dollars. If you want to produce at least 80 units over the next three months, formulate and solve a nonlinear programming model to determine the most economical way to produce.

In: Economics

Explain the concept of unemployment, paying attention to the variuos types of unemployment, the cost of...

Explain the concept of unemployment, paying attention to the variuos types of unemployment, the cost of unemployment and the policies that government may implement to reduce unemployment.

Conclude by evaluating how the Phillips curve explains the tradeoff between inflation and economic activity such as real GDP unemployment.

In: Economics

A company is considering the purchase of a large stamping machine that will cost $140,000, plus...

A company is considering the purchase of a large stamping machine that will cost $140,000, plus $6,500 transportation and $12,000 installation charges. It is estimated that, at the end of five years, the market value of the machine will be $50,000. The IRS has established that this machine will fall under a three-year MACRS class life category. The justifications for the machine include $35,000 savings per year in labor and $45,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. What is the after-tax equivalent annual worth of this investment over the five year period which ends with the sale of the machine?    (Do not enter a dollar sign $ with your answer.)

In: Economics

Given a project with the following cash flows and a cost of capital of 9%. Calculate...

Given a project with the following cash flows and a cost of capital of 9%. Calculate the NPV, IRR, MIRR, PI, payback and discounted payback. For each of the six calculations, give a brief interpretation of what it measures and how it should be used to evaluate a project. Should the project be accepted? Why or why not?

Time Period Cash Flow

     0 -$200,000

     1 $50,000

     2 $70,000

     3 -$80,000

     4 $75,000

     5 $100,000

     6 $120,000

In: Finance

Assume there is one cost function which is: C = 3 + 5q − 4q2 +...

Assume there is one cost function which is:
C = 3 + 5q − 4q2 + q3 (1)

  1. (a) Calculate the Marginal cost MC.

  2. (b) Calculate the Average fixed cost AFC.

  3. (c) Calculate the Average variable cost AVC.

  4. (d) Calculate the Average cost AC.

  5. (e) Find the point where MC and AVC intercept and the corresponding cost C.

  6. (f) Assume you notice the market price is $5, aiming at maximizing the profit, what is the optimal number to produce?

  7. (g) Find the maximum profit based on the price you find from question (f).

  8. (h) Provide a market price at which there is a competitive equilibrium market.

In: Economics