What is the net income for both options assuming present worth method?
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A: Ratio is the relation between two different quantities obtained after dividing one by another.
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A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: What is the marginal rate of return? How is it calculated?
A: Answer: Marginal rate of return can be defined as the return obtained or received by means of…
Q: a. what is the difference between the discount rate used for net present value and the internal rate…
A: Discount rate used for net present value is rate which investor want to earn from a project . It is…
Q: Write the capitalized-cost equation?
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Q: Nhat is the exact rate of return?
A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…
Q: How to calculate Present Value Interest Factors?
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Q: What is the equivalent total investment cost (future worth)?
A: Answer: Equivalent total investment cost (future worth) method discounted cash flow method converts…
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Q: Which are the two computational schemes for calculating this earned interest yield?
A: The two computational schemes for calculating the earned interest yield are compound interest scheme…
Q: Option A Option B $ Net Present Value Which option should be accepted? should be accepted.…
A: The decision regarding to make the investment in the option between the two options available to the…
Q: Summarize the basic procedure of Net-Present-Worth Criterion?
A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…
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A: There are various alternatives for a project or investments that can be undertaken or chosen by the…
Q: What is current market value? Describe about it.
A: Market value: Market value is the price at which, both seller and buyer agree to exchange the…
Q: Give an example of the Present Value of Perpetuities?
A: Perpetuity is a continuous annuity, a progression of equivalent interminable cash flows happening…
Q: difference between internal rate of return and net present value?
A: Difference between internal rate of return and net present value?
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A: The preferred return is a distribution of profit earned by the organization to their elite class of…
Q: choose the best alternative A or B using net present worth method ?
A: The net present value is one of the modern methods used for evaluating the feasibility of a…
Q: Which you prefer, equity or fixed income?
A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…
Q: How can we use the market interest rate to find the net present worth?
A: Investors often find the present worth of the fund flows because investors receive the funds at…
Q: Compare the mutually exclusive alternatives based on the rate of return?
A: Mutually exclusive projects are the projects out of which one best project is selected due to lack…
Q: What is the initial investment plus interest?
A: The total of initial investment and interest will give the total value or worth of the investment…
Q: How can we calculate the net present worth of each payment?
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Which one of the following methods of analysis is most appropriate to use when two investments are…
A: Capital budgeting techniques such as internal rate of return, net present value method, average…
Q: What should be done to find the equivalent present worth of the actual dollar amount?
A: Present value is the concept of discounting future value to bring it to today’s worth.
Q: What is the single-payment present-worth factor?
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: What are the different terms used to refer to the rate of return?
A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…
Q: What is the net present value method?
A: Net Present Value Method: It is the present value of the annual cash flows and the project initial…
Q: What is the projected net income?
A: A budget can be defined as a quantitative statement developed to ascertain the funds required…
Q: What are the measures of investment worth based on yield? What are they called?
A: Investment worth based on yield means that an investor is expecting certain income on an investment…
Q: Describe the method of developing a Present Worth Distribution?
A: Present value or Present Worth of an investment or a project is the value of future cash flow…
Q: Illustrate the market interest rate to find the net present worth?
A: Investors frequently find the present worth of the fund flows for the reason that savers receive the…
Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Describe the process of Calculating Present Worth?
A: Step-1: The initial invested amount should be ascertained and the initial investment is the sum…
Q: what is the difference between a required rate of return and an expected rate of return?
A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…
Q: What is market Value added? What is economic value added? What is the difference between what each…
A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…
Q: Why are the net-present-value and internal-rate-of-return approaches ranked differently for…
A: This question explains about the net-present-value and internal-rate-of-return approaches ranked…
Q: What tax rate should be used in calculating the taxes on the investment's projected income?
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes…
A: Introduction: The discount rate is nothing but a rate that reduces potential cash flows in order to…
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A: Accounting Assumptions: Accounting professionals are guided by the accounting…
Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?
A: The required rate of return can be calculated by two methods, 1) Gordan's growth model Gordan's…
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- Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.46. Lorenzo corporation has provided the following data for one of its products. Process time = 3 days Queue time 4 days, Inspection time 0.7 days Move time 0.3 days Wait time 9 days The throughput time for this operation would be closest to Use the following information to answer 47 -50. Thomas Ito Manufacturing Corporation has the following information. Moving time 8 days, Inspection time 2 days, Processing time 10 days, storage time 30 days 47. The total amount of value added time would be: 48. The total amount of non-value added time would be 49. The product's cycle time would 50. The manufacturing cycle efficiency would beA company manufactures three products A, B, and C using the same equipment and processes. Data for the period is given below. A B CProduction (units) 20000 25000 2000Sales price (per unit) $20 $20 $20Material cost per unit $5 $10 $10Labour hours per unit 2 hours 1 hour 1 hourLabour is paid at the rate of $5 per hourOverheads for the period were as follows:Set up costs 90000Receiving 30000Dispatch 15000Machining 55000 $190000Cost driver data: A B CMachine hours per unit 2 2 2Number of set ups 10 13 2Number of deliveries received 10 10 2Number of orders dispatched 20 20 20Required:1.Calculate the cost per unit, absorbing all the overheads on the basis of labour hours. 2. Calculate the cost per unit, absorbing the overheads on the basis of Activity based costing approach.
- Consider the below diagram showing production process of Company XYZ: Process A 1.25/hour Process B 2.75/hour Process C Process D 0.5/ minute 3.25/ hour What will be the rate of the production for the company? a) 1.25 per hour b) 3.25 per hour c) 7.75 per hour d) 30 per hourConsider the information below for a company whose products goes through two processes; material cost of GHC100000 for a quantity of 10000kg, labour cost- GHC50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. What value should the output be transferred to process 2? OA. GHC36 O B. GHC26 OC. GHC16 D. GHC27Sarah produces a product that passes through two processes, Process 1 and Process 2. Details of activities for the month of December, 2020 is as follows; Process 1 Process 2Material introduced (4,000 units) @GH₵200.00 - Material added - GH₵25,000.00Labour Costs (@GH₵400 per hour) 200hrs 600hrsOutput in units 3,500units…
- A manual assembly line is being designed for a product with annual demand = 100,000 units. The line will operate 50 wks/year, 5 shifts/wk, and 7.5 hr/shift. Work units will be attached to a continuously moving conveyor. Work content time = 42.0 min. Assume line efficiency E = 0.97, balancing efficiency Eb = 0.92, and repositioning time Tr = 6 sec. Determine: (a) hourly production rate to meet demand, (b) number of workers required.Johnson Co. Ltd. make and sell two product Q and Z, each of which passes through the same automated production operations. The following estimated information is available for period 1: Product unit dataDirect material costVariable production overhead costOverall hours per product unit(hours)0.25 0.15 Production/sales of product Q and Z are 120,000 units and 45,000 units respectively. The selling price per unit for Q and Z are Ghc 60 and Ghc 70 respectively Maximum demand for each product is 20% above the estimated sales levels.Total fixed production overhead cost is Ghc 1,470,000. This is absorbed by product Q and Z at an average rate per hour based on the estimated production levels. Required: Using net profit as a decision measure, show why management of Johnson Co. Ltd. argues that it is indifferent on financial grounds as to the mix of product Q and Z which should be produced and sold and calculate the total net profit for the period. One of the production operations has…MCE Craig, Inc., has provided the following information for one of its products for each hour of production: Actual velocity: 200 units (per hour) Move time: 11 minutes Inspection time: 12 minutes Rework time: 12 minutes 1. MCE is 0.42 2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. If required, round your answers to two decimal places. Theoretical cycle time fill in the blank minutes Actual cycle time 0.3 minutes MCE fill in the blank
- Compute (a) cycle time, (b) value-added time, (c) non-value-added time, and (d) cycle efficiency using the following information for a manufacturer. Process time. 2.10 days Move time. 0.75 days Inspection time. 0.50 days Wait time. 0.15 daysFollowing information relating to a type of raw material is available: Annual demand 2,400 units, Unit price OMR .2.400, Ordering cost per order OMR.4.000, Storage cost 2% per annum, Interest rate 10% per annum. Calculate Economic Order Quantity.Following are Costs for a month in which it produced 2000 units.: (All values in OMR) Fixed Variable Total Costs Costs Costs Material Costs 15000 55000 Labor Costs ? 65000 75000 Production 25000 10000 ? Facilities cost On the basis of above information, what will be the estimated cost for 4000 units from the following? Select one: O a. OMR 330000 O b. OMR 165000 O c. OMR 215000 O d. OMR 280000