Revel Ch 2 Test
Bekkah realized that she really likes competitive swimming.
Tyler figured out why he dislikes math so much.
Norris feels that abortion is wrong.
Jessa thinks her team is the best in the division
With a total initial expenditure of $150,000, Nicholson Roofing Materials, Inc. is thinking about two projects that are incompatible with one another. The board of directors of the company decided on a maximum payback period of four years and a 9% cost of capital. The following table displays the financial inflows connected to the two projects.
Year 123456 Project A $45,00045,00045,00045,00045,00045,000 Project B $75,00060,00030,00030,00030,00030,000
Using this, derive the IRR of each project.
How will imvestment spending change as the following events cccur?
a. The interest rate falls as a result of Federal Reserve policy.
b. The U.S. Environmental Protection Agency decrees that corporations must upgrade or replace their machinery in order to reduce their emissions of sulfur dioxide.
c. Baby boomers begin to retire in large numbers and reduce their savings, resulting in higher interest rates
A company's cost accounting system applies direct labor costs to apply overhead to goods in process and finished goods inven- tories. Its production costs for the period are: direct materials, $45,000; direct labor,$35,000; and overhead applied, $38,500. What is its predetermined overhead allocation rate?