e. Which project should be accepted? Why? PROJECT A PP =100,000/32,000= 3.125 IRR = 18.03 NPV a = 32,000( 1/ (1 + .11)1) – 100,000 = 18,268.70 PI = 160,000/ 100,000= 1.6 Project A CFo = -100,000 F1 = 5 CF1 = 32,000 = 18,268.70 NET PRESENT VALUE Project A Project B Cash Flow Cash Flow Initial Outlay -100,000 Initial Outlay -100,000 Year 1 32,000 Year 1 0 Year 2 32,000 Year 2 0 Year 3 32,000 Year 3 0 Year 4 32,000 Year 4 0 Year 5 32,000 Year 5 200,000 PV $118,268.70 PV $118,690.27 -100,000.00 -100,000 NPV= 18,268.70 NPV= 18,690.27 INTERNAL RATE OF RETURN year project A year Project B 0 --100000 0 -100000 1 32000 1 0 2 32000 2 0 3 32000 3 0 4 32000 4 0 5 32000 5 200000 18.03% 14.87% The conflict is started by the projects containing two different cash flows in different periods of time. The return cash flows of Project A looks to be consistent over the course of five years after the initial $100,000 investment. They are receiving almost a 1/3 of the original investment back every year and thus can recover more quickly.
Total change in whiskey inventories would be 9,965,192.31 – 4,506,000 = $5,459,192.31 for bulk whiskey and $158,223.21 for a grand total increase in inventories of $5,617,415.52. Since this asset would go up with no corresponding increase in liabilities, Shareholders’ Equity would increase by the same amount. ii. The balance sheet at the end of 1961? Using the same formula as above, bulk whiskey would become 5,030,000 / .52 * 1.15 = $11,124,038.46 and finished whiskey would become 1,969,000 / 11.20 *12.10 = $2,127,223.21.
Redo questions a, b, c, and d under these conditions. a. Total revenue | (100x7500) | | $750,000 | Total Var Cost | (25x7500) | | 187,500 | Total contribution margin | | $562,500 | Fixed Costs | | | 500,000 | Profit | | | $62,500 | b. Contribution margin: $75; breakeven point: Contribution margin x Volume=FC $75 x Volume = $500,000 Volume = 6,667 c. ($75 x Volume)-$500,000 = $100,000 $75 x Volume = $600,000 Volume = 8,000 ($75 x Volume)-$500,000 = $200,000 $75 x Volume = $700,000 Volume = 9,333 d. | | | | | | | | | | | | e. Total revenue | (80x7500) | | $600,000 | Total Var Cost | (25x7500) | | 187,500 | Total contribution margin | | $412,500 | Fixed Costs | | | 500,000
State the place value of the underlined digit in 6 953 742. A Hundreds C Ten thousands B Thousands D Hundred thousands ( 3. Round off 5 987 341 to the nearest hundred thousand. A 5.8 million C 6.0 million ( B 5.9 million D 6.1 million 4. Which of the following numbers, when rounded off to the nearest thousand, becomes 7 541 000?
A 10 hours B 8.6 hours C 9.6 hours D 9 hours 8 Increase $38 by 15%. A $57.00 B $43.70 C $53.10 D $53.70 8 Δ − 9 What is the correct value of Δ if ----- = −− ? 10 35 A 16 B 24 C 28 D 32 16 A box of 1500 elastic bands costs $28.50. What is the price per elastic band, to the nearest cent? A 1 cent B 2 cents C 19 cents D $1.90 7 2 17 Find % --& .
If the value of x is postnatal age of 30 hours, what is the value for Yˆ or SBP for neonates ≤1,000 grams? Show your calculations. 208 EXERCISE 27 • Simple Linear Regression 6. In the legend beneath Figure 2, the authors give an equation indicating that systolic blood pressure is SBP = 50.3 + 0.12x. If the value of x is postnatal age of 30 hours, what is the value for Yˆ or SBP for neonates 1,001–1,500 grams?
The cash flow is $3,000,000. The cash flow is the net income + depreciation, so 1.5m + 1.5m = 3m. Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled, how would this change affect Brandywine’s net income, total profit margin, and cash flow? If the depreciation expense doubled, the income statement would be as follows: |Brandywine Income Statement | | | | |Revenue |12,000,000 | |Expenses | 9,000,000 | |Gross Profit | 3,000,000 | | | | |less |
$15,600 B. $11,700 C. $8,400 D. $14,733 Contribution margin is 70,200/129,000= .5442 Sales should be 129,000/5400 *5100= 121,833.33 So contribution margin should be 121,833.33* .5442= 66,301.70 Subtracting fixed costs of 54,600 we have 11,702 so b) 4. If a company increases advertising by $500,000, this will cause net operating income to increase if the resulting increase in sales dollars is greater than: A. $500,000. B.
a) Today 1 year 2 years 10 years -10.000 500 1.500 10.000 NPV = -10.000 + 500/1,06 + 1.500/1,06^2 + 10.000/1,06^10 = -2.609,36 If the interest rate were lower the project would be positive. Thus, high amounts far away in the future are onle worth if the interest rate is very low. 4.18 Consol Bond = Perpetuity. 4.38 The interest rate that would make the NPV = 0 is called the IRR. Now $5000, in a year pay $6000.
Question 10 - #93724 If X and Y are independent events, which of the following is most accurate? A) P(X | Y) = P(X). B) P(X or Y) = (P(X)) × (P(Y)). C) P(X or Y) = P(X) + P(Y). Question 11 - #93542 A T-bill with a face value of $100,000 and 140 days until maturity is selling for $98,000.