Emo Incorporated is reviewing the following projects for next year's capital program. Project Initial Investment Length in Years Annual Cash Flow A $3.0 million 6 $719,374 B 3.5 million 5 970,934 C 4.0 million 7 904,443 D 5.0 million 4 1,716,024 E 6.0 million 6 1,500,919 F 7.0 million 5 1,941,868 G 8.0 million 7 1,725,240 Projects A and B are mutually exclusive and so are Projects D and E. Griffin-Kornberg has 10.5% cost of capital and a maximum of $14 million to spend on capital projects next year. Use capital rationing to determine which projects should be included in Emo's capital program.

Answer:

Projects C, D and B should be carried out since they yield the highest profits. Total investment = $12.5 million.

I based my decision on how much value each project generated (NPV) and how profitable they were. If the company really needed to invest as much of the $14 million as possible, then you could change project D for E, fro a total investment of $13.5 million. Projects B and F yield basically the same gains, but the investment for project F is too high and there are better alternatives.

Explanation:

Project          Initial Investment         Length in Years          Annual Cash Flow

A                             $3.0 million                    6                           $719,374

B                             $3.5 million                    5                          $970,934

C                             $4.0 million                    7                          $904,443

D                             $5.0 million                    4                        $1,716,024

E                             $6.0 million                    6                        $1,500,919

F                             $7.0 million                    5                         $1,941,868

G                             $8.0 million                    7                        $1,725,240

NPV

A = -$3.0 million + (4.29218 x $719,374) = -$3.0 million + $3,087,682.70 = $87,682.70

B =  -$3.5 million + (3.74286 x $970,934) = -$3.5 million + $3,634,070.03 = $134,070.03

C = -$4.0 million + (4.7893 x $904,443) = -$4.0 million + $4,331,648.86 = $331,648.86

D = -$5.0 million + (3.13586 x $1,716,024) = -$5.0 million + $5,381,211.02 = $381,211.02

E = -$6.0 million + (4.29218 x $1,500,919) = -$6.0 million + $6,442,214.51 = $442,214.51

F = -$7.0 million + (3.74286 x $1,941,868) = -$7.0 million + $7,268,140.06 = $268,140.06

G = -$8.0 million + (4.7893 x $1,725,240) = -$8.0 million + $8,262,691.93 = $262,691.93

Profitability index

A = NPV / initial investment = $87,682.70 / $3,000,000 = 2.92%

B =  NPV / initial investment = $134,070.03 / $3,500,000 = 3.83%

C = NPV / initial investment = $331,648.86 / $4,000,000 = 8.28%

D = NPV / initial investment = $381,211.02 / $5,000,000 = 7.62%

E = NPV / initial investment = $442,214.51 / $6,000,000 = 7.37%

F = NPV / initial investment = $268,140.06 / $7,000,000 = 3.83%

G = NPV / initial investment = $262,691.93 / $8,000,000 = 3.28%

ranking of projects based on profitability

C = $4 million investment, 8.28%

D = $5 million investment, 7.62% mutually exclusive with E

E = $6 million investment, 7.37% mutually exclusive with D

B =  $3.5 million investment, 3.83% mutually exclusive with A

F = $7 million investment, 3.83%

G = $8 million investment, 3.28%

A = $3 million investment, 2.92%  mutually exclusive with B

Projects C, D and B should be carried out since they yield the highest profits. Total investment = $12.5 million.

Here are data on two stocks, both of which have discount rates of 8%: Stock A Stock B Return on equity 8 % 5 % Earnings per share $ 2.60 $ 1.80 Dividends per share $ 1.30 $ 1.30 a. What are the dividend payout ratios for each firm? (Enter your answers as a percent rounded to 2 decimal places.) b. What are the expected dividend growth rates for each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

On online sources such as social media, ratings websites, marketers often try and make recommendations to consumers based on their past browsing history, past stated preferences, or purchase history. For example, on Amazon, a customer is likely to receive product recommendations based on previous purchases, while on Netflix, a viewer is likely to get recommendations based on their viewing history. Marketers believe that by offering options close to a customer's preferences, they are more likely to see the recommendation accepted. Recently, this micro-targeting has received some criticism. Based on our discussions in class, the reason is:

The inflation rate over the past year was 4.2 percent. If an investment had a real return of 9.4 percent, what was the nominal return on the investment?

You take $100 you had kept under your mattress and deposit it in your bank account. If this $100 stays in the banking system as reserves and if banks hold reserves equal to 10 percent of deposits, by how much does the total amount of deposits in the banking system increase

What is the definition of minimum wage?

A cost due to an increase in activity is called?

Kyle is a college student who works during the summer to pay for tuition. Last summer he worked at a fast-food restaurant and earned $2,500. This summer he is working as a painter and will earn $4,000. To do the painting job, Kyle had to spend $200 on supplies. What is Kyle's accounting profit

Lori Nichols started an engineering firm, Engineering Enterprises P.C. During its first month of operations, the following transactions were completed:I.Lori invested $33,000 in the business, which in turn issued common stock to her.II.The business purchased equipment on account for $6000.III.The business provided engineering services on account, $12,000.IV.The business paid salaries to the receptionist, $4000.V.The business received cash from a customer as payment on account $7000.VI.The business borrowed $9000 from the bank, issuing a note payable.At the end of the month, cash equals:$45,000$38,000$33,000$71,000

Ethical Decision Making: A Mini-CaseYou are one of three stockholders who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other stockholders has always prepared the company’s annual financial statements. Recently, you proposed that the statements be audited each year because it would benefit the stockholders. The stockholder who prepares the statements proposed that his uncle, who has a lot of financial experience, can do the job at little cost. The other stockholder remained silent.Required:1. What position would you take on the proposal? Justify your response in writing.2. What would you recommend? Give the basis for your recommendation.

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide, predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 240,000
Fixed manufacturing overhead cost 4,320,000
Variable manufacturing overhead cost per machine-hour 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $4,000. The following information was available with respect to this job:
Direct materials $1,840
Direct labor cost $1,320
Machine-hours used 87
Determine the total cost of Job P90

In fishing, a career education often comes from which of the following?

A: College classes
B: On-site training
C: Vocational school

The collection and summarization of the demographic characteristics of the employees of a particular firm is an example of

Can someone answer this pls?:)​

Most P2P apps or services can be linked to checking accounts, debit cards or _____

In an efficient market, the price of a security will: _____________

a. always rise immediately upon the release of new information with no further price adjustments related to that information.
b. eact to new information over a two-day period after which time no further price adjustments related to that information will occur.
c. rise sharply when new information is first released and then decline to a new stable level by the following day.
d. react immediately to new information with no further price adjustments related to that information.

discuss its impact on small businesses and startup opportunities​

Consider the market for cars. Which determinant of supply is affected by each of the following events? a. A steel tariff increases the price of steel. Number of sellers Prices of inputs Prices of related goods Technology Expectations b. Improvements in robotics increase efficiency and reduce costs. Prices of related goods Technology Prices of inputs Number of sellers Expectations c. Factories close because of an economic downturn. Technology Prices of related goods Number of sellers Expectations Prices of inputs d. The government announces a plan to offer tax rebates for the purchase of commuter rail tickets. Number of sellers Prices of related goods Prices of inputs Expectations Technology e. The price of trucks falls, so factories produce more cars. Technology Number of sellers Prices of inputs Expectations Prices of related goods f. The government announces that it will dramatically rewrite efficiency standards, making it much harder for automakers to produce their cars. Prices of inputs Prices of related goods Expectations Technology Number of sellers

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2. Unearned Rent Revenue, $349,860. The company began leasing condos in its new building on November 1. Each tenant has to make a $5,340 security deposit that is not refundable until occupancy is ended. At December 31, the company had the following rental contracts that were paid in full for the entire term of the lease:

Date Term (in months) Monthly Rent Number of Leases

Nov. 1 6 $3,940 6
Dec. 1 6 $10,370 4

Prepaid Advertising, $16,560. This balance consists of payments on two advertising contracts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows:

Contract Date Amount Number of magazines Issues
A650 May 1 $6,960 12
B974 Oct. 1 9,600 24

The first advertisement runs in the month in which the contract is signed.

4. Notes Payable, $78,480. This balance consists of a one year, 8%, note that is dated June 1.

Required:
Marin is preparing for a meeting with potential investors. What is the net effect of the adjusting entries on net income?

Discuss any five reason why corporate and business organization are now taking a keen interest in environment issue.
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Which three things does money help people do in an economy? (Pick three)

-Exchange commodities
-measure the value of commodities
-avoid inflation
-store value
-hide the price of a commodity
-increase inflation
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1. Which of the following recruitment sources should the university use to fill its 200 positions?

a. Newspaper advertising
b. Colleges and universities
c. Electronic recruiting

2. Which of the following recruitment sources should the university avoid using to hire for its entry-level positions?

a. Referrals
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Activity Pool Cost
Material handling $72,307.50
Machine maintenance $72,400.00
Setups $81,378.00

Activity Driver Activity
Number of moves 465
Number of machine hours 36,200
Number of production runs 66

Chipman makes 3 models of pumps with the following details:

Economy Standard Premium
Units produced 10,010 20,500 3,560
Number of moves 168 126 171
Machine hours 9,450 20,600 6,150
Production runs 26 14 26

Required:
a. Calculate the activity rate for each activity.
b. Determine the amount of indirect costs assigned to each of the products.

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Required:
Information pertaining to manufacturing overhead for printed-circuit boards follows: Fill in the missing amount.


Activity Cost Driver Activity Driver Rate Activity Consumption per Board Factory Overhead per Board
Axial insertion Number of axial insertions $0.27 10.0
Hardware insertion Number of hardware insertions 4.00 110.0
Hand load Boothroyd time 8.00 48.24
Masking Number of points masked 0.30 170.00
Final test Test time 10.00 10.00

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A. generate ideas
B. screen ideas
D. develop the concept
E. market and sell the product

A retailer spends a $500 per month to keep its online shop active and updated. The store acquires shirts at a cost of $5 per shirt. Each shirt sells for a marginal benefit of $10 per shirt.

How many shirts would you have to sell for it’s marginal benefits to be greater than its total costs?

Matthews Delivery Service, Inc., completed the following transactions during its first month of operations for January 2012:

a. Matthews Delivery Service, Inc., began operations by receiving $6,000 cash and a truck valued at $11,000. The business issued common stock to aquire these assets.
b. Paid $300 cash for supplies.
c. Prepaid insurance, $700.
d. Performed delivery services for a customer and received $800 cash.
e. Completed a large delivery job, billed the customer $1,500, and received apromise to collect the $1,500 within one week.
f. Paid employee salary, $700.
g. Received $12,000 cash for performing delivery services.
h. Collected $600 in advance for delivery service to be performed later.
i. Collected $1,500 cash from a customer on account.
j. Purchased fuel for the truck, paying $200 with a company credit card. (CreditAccounts payable)
k. Performed delivery services on account, $900.l.Paid office rent, $600. This rent is not paid in advance.
m. Paid $200 on account.
n. Paid cash dividends of $2,100.

Required:

a. Record each transaction in the journal.
b. Post the transactions that you recorded in Requirement 1 in the T-accounts.
c. Write the trial balance for the month ended January 31, 2012.