Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Sam buys the new product. System costs $100 000. It has the economic life of three years, at which time its estimated disposal value will be= $32 000. Sam evaluates that improved efficiency will decrease operating costs by= $46 000 a year before depreciation and taxes. Depreciation utilized for tax purposes is straight line to disposal value. Firm’s debt ratio is 55% and cost of capital is 21%. Marginal tax rate is 40% and he can suppose that tax is paid in same year as it is incurred. Should the system be obtained? Describe why? Illustrate the formula.

2) Products Kappa and Sigma are joint products. Joint production cost of products is $= 800. Kappa has the market value of $450at split off point. If Kappa is further processed at the extra cost of $600, its market value is= $1400. Product Sigma has the market value of $1550 at split off point. If product Sigma is further processed at the extra cost of $300, its market value is= $1400. By using relative sales value method, compute joint product cost which would be allocated to Kappa and Sigma. How do you know if one of the products must be further processed?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914335

Have any Question? 


Related Questions in Basic Finance

What ethical considerations might enter into decisions that

What ethical considerations might enter into decisions that result in cash flow and stock price effects that are valued lower than they might otherwise have been?

Create predictions about the relationships between

Create predictions about the relationships between behavioral variables that interest you. For each relationship that you develop, indicate how the prediction could be tested using a descriptive, a correlational, and/or ...

Discussionresearch a company with an international presence

Discussion Research a company with an international presence. Describe the type of work performed; measures that the company's industry area uses for productivity; and the pitfalls and promise that the metrics provide. W ...

1 a certain number of bankruptcies are good for the economy

1. A certain number of bankruptcies are good for the economy. Discuss why you agree or disagree with this statement. 2. A business should always be liquidated when the liquidation value exceeds the business's value as a ...

Ford is about to issue a new corporate bond face value 1000

Ford is about to issue a new corporate bond, face value= $1,000, coupon rate 8% (Annual), term to maturity= 4 years. You know that a very similar bond issued by GM is already being traded in a bond market with its market ...

1 winnebagel corp currently sells 28000 motor homes

1. Winnebagel Corp. currently sells 28,000 motor homes per year at $73,000 each and 7,000 luxury motor coaches per year at $115,000 each. The company wants to introduce a new portable camper to fill out its product line; ...

Make an analytical model of a tornado using an irrotational

Make an analytical model of a tornado using an irrotational vortex (with velocity inversely proportional to distance from the center) outside a central core (with velocity directly proportional to distance). Assume that ...

Milgram conducted his experiments on obedience in the days

Milgram conducted his experiments on obedience in the days before all research was scrutinized by an Institutional Review Board. Imagine, however, that Milgram had submitted his research proposal to an IRB of which you w ...

Compare and contrast transaction exposure and economic

Compare and contrast transaction exposure and economic exposure? Why might the cash flows of purely domestic firms be exposed to exchange rate fluctuations? How do most companies deal with economic exposure?

Kms corporation has assets with a market value of 500

KMS Corporation has assets with a market value of $500 million, $50 million of which are cash. It has debt of $200 million, and 10 million shares outstanding. Assume perfect capital markets. a. What is its current stock ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro