at the beginning of year 2 clair company had a $5,500 balance in its retained earnings account. during january of year 2 clair earned $2,000 of revenue and incurred $1,400 of expenses. based on this information, the balance in retained earnings account on january 31, year 2 is

Answers

Answer 1

The balance in retained earnings account on January 31, year 2 is  $6,100.

What is retained earnings?

Retained earnings is the amount of a company's earnings that is not paid out to shareholders as dividends. Retained earnings is the sum of beginning retained earnings and net income. Net income is revenue less expenses. Revenue increases the value of retained earnings while expenses decrease its value.

When calculating retained earnings, the balance of the retained earnings from the previous accounting period would be added to the current accounting period because the retained earnings account is a permanent account.

Retained earnings = beginning retained earnings + revenue - expenses

$5,500 + $2,000 - $1,400 = $6,100

To learn more about retained earnings, please check: https://brainly.com/question/15490350

#SPJ1


Related Questions

Go See Darkfur and make sure to give him some appreciation! He Definitely deserves it!

Answers

Answer:

Will do !

Explanation:

Only cause u asked nicely  ;3

Hope  have a wonderful day !

Sleepy~

1,
Assume you are an engineer working for a chemical production company. You are on the technical team that is responsible for deciding what to do about the dangerous chemical that your company is using to produce its best-selling chemical product. Recent reports have just made known the dangers of this chemical, and the company now needs to decide how to proceed. There are several options to consider: stop producing the harmful product altogether and take a hit on total profits; continue to make the product and sell it, like nothing's wrong, since the federal government has not cracked down. You could also spend money and engineering efforts in R&D to develop a safe chemical that would take its place. There is no guarantee that this would happen any time soon, but the scientists think it is realistically possible. To make matters worse, your biggest competitor produces this harmful product off-shore and is not hampered by the US regulations. If you stop producing this product altogether, the financial positions of the company would be at risk to some extent. Additional marketing efforts would have to be made to sell other products to gain back the lost revenue and profits.
Consider the possible decisions and the ethics of this situation. Take into account, safety, costs, profits, competition, etc. Discuss what you would propose as a member of the decision team and why you would propose it.
2. Six years ago when the relative cost index was 50, a 15 MW power generation facility cost $10M to build. Today the cost index is 80. What would the cost be to produce a 45MW facility today if the power sizing factor is 0.7?

Answers

While the competitor producing the harmful product offshore may seem like a threat, investing in R&D to develop a safe alternative could actually give the company a competitive advantage in the long run, as it would demonstrate the company's commitment to safety and responsibility. The cost to produce a 45 MW facility today would be approximately $22.24 million.

1. As an engineer on the technical team responsible for deciding what to do about the dangerous chemical, I would propose that the company invests in R&D to develop a safe chemical that would take the place of the harmful chemical. While this option may be costly and time-consuming, it is the most ethical choice as it prioritizes the safety of both the workers and the consumers. In addition, it would also ensure the company's compliance with future government regulations and eliminate any potential legal and financial risks associated with the use of the harmful chemical.

Continuing to produce and sell the harmful product without making any changes would be unethical and could potentially harm workers and consumers, leading to legal and financial repercussions. Stopping production of the product altogether could also have negative financial consequences, but with a strategic marketing plan, the company could mitigate these risks and eventually recover from any losses.


2. To calculate the cost of producing a 45 MW facility today, we can use the following formula:

Cost of new facility = Cost of old facility x (Cost index new / Cost index old) x (Size new / Size old) ^ sizing factor

Plugging in the given values, we get:

Cost of new facility = $10M x (80 / 50) x (45 / 15) ^ 0.7
Cost of new facility = $10M x 1.6 x 1.81 ^ 0.7
Cost of new facility = $10M x 1.6 x 1.39
Cost of new facility = $22.24M

Learn More about investing here :-

https://brainly.com/question/15353704

#SPJ11

4-Strategy should focus PRIMARILY on the organization's: a. shareholders b. customers c. products d. employees

Answers

Answer:

b. customers

Explanation:

The organizational strategy can be understood as a plan that aims to develop action plans so that a company can achieve its objectives and goals, so it is correct to state that the strategy should focus primarily on the organization's customers.

A company exists to satisfy the desires and needs of potential customers, so that is the substantial reason for its existence and where its focus must be, of course, a strategy must understand the organizational whole, its internal and external environment including shareholders, products and employees, but the focus on the customer must be a priority, so that the company has acceptance, value and market positioning.

Programs where current employees can recommend candidates for employment are called?

Answers

Programs where current employees can recommend candidates for employment are commonly referred to as employee referral programs.

Employee referral programs are initiatives implemented by companies to encourage their current employees to recommend potential candidates for job openings within the organization. These programs typically offer incentives or rewards to employees who successfully refer individuals who are eventually hired. Employee referrals are considered valuable because they often result in high-quality candidates who are a good fit for the company culture and have been vouched for by trusted employees. By leveraging the networks and knowledge of their existing workforce, companies can tap into a broader pool of talent and increase the likelihood of finding suitable candidates for their vacancies.

Learn more about employee referral programs here : brainly.com/question/17439341
#SPJ11

What are some factors that would influence supply? Explain

Answers

Answer:

6 Factors Affecting the Supply of a Commodity (Individual Supply) |

Price of the given Commodity: ADVERTISEMENTS: ...

Prices of Other Goods: ...

Prices of Factors of Production (inputs): ...

State of Technology: ...

Government Policy (Taxation Policy): ...

Goals / Objectives of the firm:

Explanation:

Please mark as brain list

Rachel bought 1,500 shares of cawh consolidated bank at a price of $24. 85 each. As the price climbed, she sold off parts of her holdings. She sold off 250 shares at $28. 32 apiece, she sold 800 of her shares at $33. 60 apiece, and she sold off the remainder of her shares at $39. 94 apiece. If rachel’s broker charges a commission of $65 per $1,000 of stock bought or sold, how much profit did rachel make, to the nearest dollar?.

Answers

Rachel made a profit of approximately $8,859 from buying and selling her shares in Cawh Consolidated Bank.

To calculate Rachel's profit from buying and selling 1,500 shares of Cawh Consolidated Bank, we'll follow these steps:
1. Calculate the initial cost of buying 1,500 shares at $24.85 each: 1,500 * $24.85 = $37,275.
2. Calculate the commission paid for buying the shares: ($37,275 / $1,000) * $65 = $2,422.875 (rounded to $2,423).
3. Calculate the revenue from selling the shares:
  a. 250 shares at $28.32 each: 250 * $28.32 = $7,080.
  b. 800 shares at $33.60 each: 800 * $33.60 = $26,880.
  c. 450 shares at $39.94 each (since she sold all her shares): 450 * $39.94 = $17,973.


4. Calculate the total revenue from selling the shares: $7,080 + $26,880 + $17,973 = $51,933.
5. Calculate the commission paid for selling the shares: ($51,933 / $1,000) * $65 = $3,375.645 (rounded to $3,376).
6. Calculate the net profit by subtracting the initial cost, buying commission, and selling commission from the total revenue: $51,933 - $37,275 - $2,423 - $3,376 = $8,859.
So, Rachel made a profit of approximately $8,859.

To know more about profit click here

brainly.com/question/15855326

#SPJ11

What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.

Answers

Answer:

A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOU

What is the difference between adjustment refusal and other refusals

Answers

Answer:

Your company most likely has clear, reasonable guidelines regarding what is a legitimate reason for adjustment, while other refusal messages may deal with a variety of issues that are less clearly defined.

What do you mean by ECONOMIC ​

Answers

Answer:

Economics is a social science concerned with the production, distribution, and consumption of goods and services.

bzzagent mini case: bzzagent is a word-of-mouth marketing agency that runs brand advocate programs for global brands. it recently partnered with a company to pair its social media and word-of-mouth insights with shopper loyalty data. the results indicated that consumers who were making repeat purchases were also more engaged and created a higher volume of advocacy. the information from this study is important to marketers, who are trying to find ways to engage advocates and influencers, especially via social media. marketers are trying to figure out the characteristics of individuals who are most likely to influence others. in the bzzagent mini case, marketers are interested in finding individuals who influence others. the process by which one influential person informally influences the actions or attitudes of others is known as . question 28 options: a) referencing b) opinion leadership c) blogging d) positioning e) targeting

Answers

Marketers are searching for people who have sway over others in the BZZAGENT MINI CASE. Opinion leadership is the method by which one powerful individual subtly shapes the behaviors or attitudes of others.

The act of interpreting media messages or content for less sophisticated media users is known as opinion leadership. Usually, individuals who agree with opinion leaders hold them in high regard. The two-step communication flow idea put forward by Paul Lazarsfeld and Elihu Katz is where opinion leadership originates.  Robert K. Merton, C. Wright Mills, and Bernard Berelson were significant contributors to the development of the opinion leader concept. The diffusion of innovations, concepts, or commercial goods is attempted to be explained by a number of models, some of which include this hypothesis.

Because we frequently ask for advice from others in a social setting, opinion leaders play a crucial part in information flow. The target audiences do not directly receive information from the media.

Learn more about Opinion leadership here

https://brainly.com/question/29351790

#SPJ4

Explain the term economic activity

Answers

Answer:

Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an economic activity. Economic activities exist at all levels within a society.

Explanation:

CAN I GET BRAINLIEST

Please help
Give four examples of how a business product can affect its operations function

Answers


1. Product design: The design of a product can impact the operations function in terms of production methods, equipment, and staffing requirements. For example, if a product is complex and requires specialized machinery to produce, the operations team will need to invest in the right equipment and ensure that they have skilled staff to operate it.

2. Product complexity: The complexity of a product can also impact the operations function. If a product is highly complex, it may require more time and resources to produce, which can affect production schedules and staffing levels.

3. Product quality: The quality of a product can impact the operations function in terms of quality control measures, inspections, and testing. If a product has strict quality requirements, the operations team may need to invest in additional quality control measures to ensure that the product meets those requirements.

4. Product demand: The demand for a product can impact the operations function in terms of production volumes, inventory management, and staffing levels. If a product is in high demand, the operations team may need to increase production volumes and ensure that they have enough inventory to meet customer demand. They may also need to hire additional staff to keep up with production levels.

Assume that banks hold no excess reserves and that all currency is deposited into the banking system. if the required reserve ratio is 25.00%, and the Federal Reserve wants to increase the money supply by $60.00 million, the Fed would need to make an open market purchase of $ _______ million. (insert your answer in millions, and round to two decimal places.)

Answers

The Fed would need to make an open market purchase of $15.00 million to increase the money supply by $60.00 million, assuming banks hold no excess reserves and all currency is deposited into the banking system.

If the required reserve ratio is 25%, then banks must hold 25% of deposits as reserves and can loan out the remaining 75%. Therefore, if the Federal Reserve wants to increase the money supply by $60 million, banks would be able to lend out $60 million / 0.75 = $80 million in total.

To calculate the required open market purchase by the Fed, we need to use the money multiplier formula:

Money Multiplier = 1 / Reserve Ratio

So, in this case, the money multiplier would be 1 / 0.25 = 4.

To increase the money supply by $60 million, the Fed would need to purchase $60 million / 4 = $15 million worth of securities in the open market.

Therefore, the Fed would need to make an open market purchase of $15.00 million (rounded to two decimal places) to increase the money supply by $60.00 million, assuming banks hold no excess reserves and all currency is deposited into the banking system.

To know more about open market refer here:

https://brainly.com/question/29426106#

#SPJ11

Anna is 88 years old and under the court-appointed guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is:

Answers

Answer:

c. This contract is void.

Explanation:

Since in the question it is mentioned that one day Anna received a phone call from the health insurance salesman and she purchase a $400 medigap insurance policy so the contract should be void in the eyes of law as it is not valid in terms of law plus nothing is specified for whom she purchased the policy for $400

Therefore the correct option is c.

A loan of $105,487.80 is to be amortized over a 10-year term at 6% interest compounded monthly with monthly payments and a $20,000 balloon payment at the end of the term. Calculate the monthly payment.
The monthly payment is $
(Do not round until the final answer. Then round to two decimal places as needed.)

Answers

Answer:

  $1049.09

Explanation:

The present value of the balloon payment is ...

  $20,000/(1 +.06/12)^(12·10)) = $10,992.65

So, the effective amount of the loan is ...

  $105,487.80 -10,992.65 = $94,495.15

The amortization formula gives the payment as ...

  A = P(r/n)/(1 -(1 +r/n)^(-nt)) = $94,495.15(.06/12)/(1 -(1 +.06/12)^(-12·10))

 = $94,495.15(.005)/0.450367 = $1049.09

The monthly payment is $1049.09.

Cost-volume-profit analysis is the study of the effects of.

Answers

Cost-volume-profit analysis simply means the study of the effects of change in costs and volume on the profit of a company.

What is Cost-volume-profit analysis?

Cost-volume-profit analysis simply means a way to find out how changes in cost will affect the profit.

Cost-volume-profit analysis is the study of the effects of change in costs and volume on the profit of a company.

Learn more about profit on:

https://brainly.com/question/8259599

Suppose that the market for athletic shoes is initially in equilibrium at point A. Further suppose the demand for athletic shoes increases rapidly during​ 2020. At the same​ time, six more firms begin producing athletic shoes. A student remarks​ that, because of these​ events, we​ can't know for certain whether the price of athletic shoes will rise or fall. The​ student's remarks​ (that, because of these​ events, we​ can't know for certain whether the price of athletic shoes will rise or​ fall) is

Answers

Answer: Correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown.

Explanation:

When the demand for the shoes increased, it had the effect of shifting the demand curve to the right. At the same time, with six more firms coming into the market, the supply increased as well which had the effect of shifting the supply curve right as well.

The new equilibrium as a result of these movements will see the quantity increase. However, due to the shift of both the supply and the demand curve in the same direction, it is uncertain if the price will change or not.

The general rule is that if the rise in supply is more than rise in demand then the price will decrease. If they rise by the same amount then price will remain the same. It shows therefore that if both supply and demand rise at the same time, the effect on equilibrium price is unknown.

Suppose that the market for athletic shoes is initially in equilibrium at point A. Further suppose the

How does self-motivation fit into the career readiness model?.

Answers

A self-motivation was ablt to fit into the career readiness model because it is an attitude.

What is a self-motivation?

It refers to the personal ability to motivate and drive oneself to take initiative and action to pursue set goals and complete tasks.

Therefore, the self-motivation was ablt to fit into the career readiness model because it is an attitude that is innate in an individual.

Read more about self motivation

brainly.com/question/11871721

Which of the following costs should be excluded from research and development expense?

a. Acquisition of R&D equipment for use on a current project only
b. Cost of marketing research for a new product
c. Modification of the design of a product
d. Engineering activity required to advance the design of a product to the manufacturing stage

Answers

Answer:

can you help me with my problem

QUESTION 1 of 10: Large-cap stocks have a market capitalization of:
0 0 0 0
a) Between 300 million and 2 billion
b) Between 10 billion to 200 billion
c) Between 200 billion and 500 billion
d) Between 500 billion and 900 billion

Answers

It’s b I already did the question

What are the fundamentals of financial accounting?

Answers

The two main components of the foundations of financial accounting are revenues and expenses. There are two distinct styles of financial accounting, which differ in the manner and timing in which organizations record revenues and expenses in their books of accounts.

Bookkeeping or recording financial transactions of a business is referred to as financial accounting. Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) are used to compile information on the acquisition or disposal of assets, cash receipts, invoices, and travel expenses.

The phrase Generally Accepted Accounting Principles (GAAP) refers to standardized accounting principles or practices followed by American businesses while putting together their financial reports. These regulations outline the proper accounting procedures. It guarantees consistency and openness in financial accounting procedures.

To learn more about financial accounting, please refer:

https://brainly.com/question/28506534

#SPJ4

HELP PLEASE!!!!


In general, reducing the monthly payment (P) of a credit card but keeping the interest rate (i) and present value (PV) the same will __________.


a. decrease the number of periods (n) needed to pay off the debt

b. increase the number of periods (n) needed to pay off the debt

c. eliminate the number of periods (n) needed to pay off the debt

d. have no effect on the number of periods (n) needed to pay off the debt


The answer is B. Just took the test

HELP PLEASE!!!! In general, reducing the monthly payment (P) of a credit card but keeping the interest

Answers

Answer:

B. ¯\_(ツ)_/¯ᵐᵃʸᵇᵉ cause yeah

Reducing the monthly payment (P) of a credit card but keeping the interest rate (i) and present value (PV) the same will increase the number of periods (n) needed to pay off the debt.

What is an Interest rate?

Interest is paid by a borrower and this is the amount of money that is added to the money borrowed.

Interest is usually recovered with the money borrowed in bits and the rate or amount is determined by the lender.

There is a given period to pay a loan depending on the amount borrowed the more you pay the lesser the time of repayment.

Therefore, reducing the monthly payment (P) of a credit card but keeping the interest rate (i) and present value (PV) the same will increase the number of periods (n) needed to pay off the debt.

Learn more on interest rate here,

https://brainly.com/question/25793394

#SPJ5

The purpose of charging different prices to different groups of customers is to:.

Answers

The purpose of charging different prices to different groups of customers is to earn maximum profits.

What is price discrimination?

Price discrimination is when the same product is sold at different prices to customers in different markets.

Types of price discrimination

1. First degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. Second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.

3. Third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students.

To learn more about price discrimination, please check: https://brainly.com/question/25818680

Which of the following is generally true of RCTs compared to observational studies? (Select all that apply)
A. RCTs have lower internal validity
B. RCTs present more ethical challenges
C. RCTs have lower external validity
D. RCTs have higher external validity
E. RCTs are cheaper to conduct
F. RCTs have higher internal validity

Answers

The following statements are generally true of RCTs (Randomized Controlled Trials) compared to observational studies. F. RCTs have higher internal validity. B. RCTs present more ethical challenges.

RCTs are often considered to have higher internal validity because they involve randomization and control groups, which help minimize bias and establish causal relationships between the intervention and outcome. The random allocation of participants reduces confounding variables and strengthens the validity of the results. Additionally, RCTs can present more ethical challenges compared to observational studies. In RCTs, participants are often randomly assigned to different treatment groups, including a control group, which may involve withholding a potentially beneficial intervention. Ethical considerations arise in terms of informed consent, potential harm to participants, and ensuring that the benefits outweigh the risks. The other options are not generally true. RCTs can have higher external validity if the study design and sample population closely resemble the target population. RCTs are typically more expensive to conduct due to their rigorous design, randomization, and control requirements.

Learn more about internal validity here:

https://brainly.com/question/33422455

#SPJ11



10. All of the following are important factors to consider when choosing a healthcare plan, EXCEPT...
a. The healthcare plan you had last year
b. Your anticipated medical expenses for the year you are purchasing the plan
How much you will have to pay toward expenses in deductibles, copayments, and employee
contributions
d. How much you can afford to pay out-of-pocket

Answers

The factor not to consider when choosing healthcare plan is The healthcare plan you had last year.

What is healthcare plan?

This is a policy or other benefit arrangement for people to receive healthcare. It is the arrangement of health care services for people to be treated for ailments.

Health insurance protects one from unexpected and against high medical costs.

Hence, the factor not to consider when choosing healthcare plan is The healthcare plan you had last year.

Learn more about healthcare plan here : https://brainly.com/question/24957776

#SPJ1

Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality (L). Sellers value an H at $2000, an M at $1200 and an L at $800, whereas buyers value an H at $1800, an M at $1600 and an L at $1400. As discussed in the "Akerloff's Lemons Market", sellers are able to distinguish between different quality cars but buyers are not and a buyer believes that in this market 40% of the cars is an H, 30% of the cars is an M and 30% of the cars is an L. a) Determine which type of cars will be sold at the efficient allocation. b) Determine which type of cars will be sold at the market equilibrium.

Answers

Answer:

a) Determine which type of cars will be sold at the efficient allocation.

All cars would be sold in a Pareto efficient allocation.

In a Pareto efficient market, resources are all allocated in teh most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.

b) Determine which type of cars will be sold at the market equilibrium.

Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.

Explanation:

the most a buyer would be willing to pay for a used car is ($1,800 x 40%) + ($1,600 x 30%) + ($1,400 x 30%) = $720 + $480 + $420 = $1,620

Define the term manager. What are the responsibilities of a manager.​

Answers

A manager is a person responsible for supervising and motivating employees and for directing the progress of an organization.

Leadership of the team

Maintain a safe work environment

Set goals

Delegate task

What are taxes?

Do taxes affect the government economic policies today?

Should taxes be lowered overall?

Should some groups be paying more than they are now?

Answer all please, 34 points :)

Answers

Answer:

1.Taxes are a amount of money that a government requires people to pay according to their income.

4.Yes, High marginal tax rates can discourage work, saving, investment, and innovation, while specific tax preferences can affect the allocation of economic resources. But tax cuts can slow long-run economic growth by increasing deficits.

3.lowering tastes would lead to raising in disposable income, allowing the consumer to spend additional sums, thereby increasing GNP. Reducing taxes thus pushes out the aggregate demand curve as consumers demand for more goods and services with their higher disposable incomes.

4.No, This reading is because people pay off their incomes so it would be unfair to charge higher then needed.

Answer:

What are taxes?

Taxes are amount of money that a government forces individuals to pay according to their income, the value of their property, etc., and that is used to pay for the activities done by the government.

Do taxes affect the government economic policies today?

Taxes affect the government economic policies today. High marginal tax rates may deter people from working, saving, investing, and innovating, while particular tax preferences can have an impact on how economic resources are allocated in a country. Tax cuts, on the other hand, might have the unintended consequence of slowing long-term economic development through boosting deficits.

Should taxes be lowered overall?

As you would anticipate, decreasing taxes increases disposable income, which allows consumers to spend more money, hence boosting gross national product (GNP). As a result, lowering taxes causes the aggregate demand curve to shift outward, as consumers seek more products and services as a result of their increased disposable incomes.

Should some groups be paying more than they are now?

Personally, I believe that one group should not be overtaxed at the expense of another group. While the tax rate for the rich is much higher, they are able to deduct a large number of expenses. The working middle class bears the brunt of the burden of taxes, whilst the impoverished get the advantages of them. I feel that it would be considerably more equitable to impose a single flat rate tax on everyone and to prohibit the use of write-offs altogether.

Explanation:

Hope it helps:)

In a contract where goods are to be shipped from Miami, which of
the following terms would create a "destination contract?"
a. Ex-Ship
b. F.O.B. (place of origin)
c. C & F
d. F.A.S.
e. C.I.F.

Answers

The term that would create a "destination contract" in a contract where goods are to be shipped from Miami is C.I.F. Explanation:C.I.F. or cost, insurance and freight is a shipping agreement term that indicates the seller is accountable for the cost of delivering goods to a specific location overseas. When the seller and buyer agree to a CIF deal, the purchase price covers everything from the seller's shipping facility to the port of destination.

The CIF Agreement establishes that the buyer will pay the cost of the goods and all other associated expenses, such as transport and customs fees, in exchange for the seller delivering the goods to the port of entry designated by the buyer. The CIF deal, unlike the FOB (Free on Board) agreement, is typically a destination contract.

To know more about destination contract, visit:

https://brainly.com/question/31114358

#SPJ11

You are considering investing in a start up company. The founder asked you for


$270,000


today and you expect to get  


$1,020,000


in


14


years. Given the riskiness of the investment​ opportunity, your cost of capital is


24%.


What is the NPV of the investment​ opportunity? Should you undertake the investment​ opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged

Answers

The IRR suggests a return of 20%, and the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged is 4%.

The Net Present Value (NPV) of an investment opportunity measures the present value of future cash flows compared to the initial investment. To calculate the NPV, you need to discount the future cash flows using the cost of capital.
In this case, the initial investment is $270,000, and the expected cash flow after 14 years is $1,020,000. The cost of capital is 24%.
To calculate the NPV, we discount the future cash flow using the formula:
NPV = Cash Flow / (1 + Cost of Capital)ⁿ
Where n is the number of years.
1. Calculate the NPV:
NPV = $1,020,000 / (1 + 0.24)¹⁴ - $270,000
2. Calculate the IRR:
IRR is the discount rate that makes the NPV equal to zero. We can use trial and error or financial software to find the IRR. Let's assume the IRR is 20%.
3. Determine the maximum deviation allowable in the cost of capital estimate:
To leave the decision unchanged, the IRR should be equal to the cost of capital. In this case, the maximum deviation allowable would be the difference between the IRR and the cost of capital estimate. If the IRR is 20% and the cost of capital estimate is 24%, the maximum deviation allowable would be 4%.
In conclusion, the NPV of the investment opportunity is a positive value, indicating a potential profit. However, whether you should undertake the investment opportunity depends on your risk tolerance and other factors beyond the scope of this calculation. The IRR suggests a return of 20%, and the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged is 4%.

To know more about maximum deviation visit:

https://brainly.com/question/14352175

#SPJ11

Other Questions
Which set of numbers includes only integers? Find the equation of the line that contains the given point and with the given slope. Write the equation in slope intercept form, if possible and graph the line. (6,8); undefined The equation is _ Name three that were involved in the seven years war Solve the absolute value inequality: |x 12| 5 < 27 Isolate the absolute value by subtracting 5 from both sides. The half life of uranium-232 is 70 years. The time for 3/4 of a sample of uranium-232 to decay isAnswera.35 years.b.70 years.c.125 years.d.140 years.e.none of the above. Can you please give me a example closing remark in making a video of how to be safe during this pandemic? Matthew plays soccer for h hours per day for five days in a row. Over the weekend, he played in a soccer tournament for a total of 6. 5 hours. Which expression represents the number of hours Matthew played soccer in a full week? 5 h 6. 5 5h 6. 5 StartFraction h over 5 EndFraction 6. 5 11. 5h. factoriser 30x-11x-6 Is there a similarity of Art work/design between Philippines and the Southeast Asian countries? What is it? How does scarcity affect people's economic decisions? Question In each answer choice a point is given along with a glide reflection. Which of the following is correctly stated? Select the correct answer below: (2,7) gide reflected along V= and across the yoxis is (2,9), The transformation of (2,3) translated by and then reflected in the x axis is a valid gide refiection. (2,3) glide reflected along V=1,0> and then reflected across the x aris igves (3,3). (1.4) gide refiected along V= and y=x getes (4,7). WILL GIVE BRAINLIEST where in the circular flow model does the flow of payments for labor services appear? payments for labor services flow from through the market as a student at weber state university, you are responsible for using the materials you collect and incorporate into your assignments and papers in an ethical manner. this means that you must: (select all that apply) A company manufacturing shirts for a discount department store decides to create a new style of cotton shirt. The company would most likely produce shirts that will:. Bella is watching a baseball game. So far, 4 out of 22 batters have gotten a hit. What is the experimental probability that the next batter will get a hit? (2x2 3+2)x(4x2 3-1/2) why is it important to secure the internet-facing side of an it system? name an internet-facing security component that an e-commerce site could implement to protect and secure its internet-facing it system. Complete the table to evaluate the function y=5x^2+1 frank martin inc. has earned $3.86 per share in the past year and is forecasted to earn $4.14 per share next year. comparable companies are trading at a trailing p/e ratio of 27.9. what is the implied value of frank martin inc.'s shares using relative valuation? round to one decimal place.