Answer:
C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.
Explanation:
NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.
Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.
Thus, false statement is
Statement C
b. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.
c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. (Do not round intermediate calculations.)
d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
e. $42,857.14
Explanation:
The computation of the break-even level of earnings before interest and taxes between these two options is shown below:
(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares
(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000
40,000 × EBIT = 75,000 × EBIT - $1,500,000,000
35,000 × EBIT = $1,500,000,000
After solving this,
The EBIT would be $42,857.14
The interest expense
= $320,000 × 6.25%
= $20,000
Answer:
$192,880
Explanation:
We need to determine the balances for each of the items.
Work in process =(5,000/225,000*100) × 8,000
= 2.2% × 8,000
= 176
Finished goods = (20,000/225,000 *100) × 8,000
= 8.9% × 8,000
= 712
Cost of goods sold = (200,000/225,000 *100) × 8,000
= 88.9% × 8,000
= 7,120
Therefore, the revised ending balance for COGS would be ;
= 200,000 - 7,120
= $192,880
Answer:
-Price elasticity of demand (PED )= 0.38
-The PED is less than one, therefore the demand is price inelastic.
Explanation:
Price elasticity of demand (PED) is the degree of responsiveness of quantity demanded to a unit change in the price of the product all other things being equal. This index measures the corresponding magnitude by which quantity demand will increase, for example, if the price reduces by a given %.
Price elasticity of demand Index is interpreted as follows:
if PED greater than 1, product is elastic
if PED less that 1, product is inelastic
PED is very useful in pricing policy. For example, a product that is price elastic will accrue more revenue if the seller reduces its price and vice versa
The price elasticity of demand for a product can be computed as follows:
PED = % change in qty DD/ % change in price
So we can compute the PED for Duffy-Deno as follows:
PED = 3.8%/10%
The PED is less than one, therefore the demand is price inelastic.
The elasticity of demand for broadband access capacity for firms is -0.38. Because the absolute value is less than 1, the demand is considered inelastic.
Elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price. Here, the price of broadband access increased by 10% and the quantity demanded decreased by 3.8%. This gives an elasticity of -3.8% / 10% = -0.38. Demand is considered inelastic if the absolute value is less than 1. Hence, the demand for broadband access capacity for firms is inelastic.
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b. the higher the required rate of return on an investment
c. the lower the maturity premium required by the investors
d. the higher the money supply in the economy
e. the lower the tax rate in the economy
Answer: b. the higher the required rate of return on an investment
Explanation: Inflation is an increase in the general level of prices or in the cost of living. It is the decline in the value of money and as such it erodes the purchasing power of future cash flows or investments. All things being equal, higher inflation rates (current or expected) equates to rising yields across the yield curve. As a result, investors demand this higher yield to account for the risk of inflation. This makes option b the only option that is true and accurate.
The higher the expected rate of inflation, the higher the required rate of return on an investment.
The correct answer is b. The higher the expected rate of inflation, the higher the required rate of return on an investment. When the expected rate of inflation is high, investors require a higher rate of return to compensate for the loss in purchasing power of their money. This is because high inflation erodes the value of money over time, reducing the real return on an investment. Therefore, investors demand a higher rate of return to maintain their purchasing power.
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It opens one of the current worksheets into a new window.
It opens a blank workbook.
It opens a new side-by-side window of an existing workbook.
Answer:
It opens one of the current worksheets into a new window.
Answer:
It opens one of the current worksheets into a new window.
Explanation:
edge 2020 lesson-managing workbook properties