Question Completion:
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments.
Answer:
Marathon Running Shop
Allocation of service departments' costs to the operating departments:
Service Departments Operating Departments Total
Advertising Administrative Shoes Clothing
Departmental $18,000 $25,000 $103,000 $15,000 $161,000
Utilities 5,120 6,400 32,640 19,840 64,000
After Utilities 23,120 31,400 135,640 34,840 $225,000
Advertising -23,120 17,340 5,780 0
Administrative -31,400 24,492 6,908 0
Total allocated costs $177,472 $47,528 $225,000
Explanation:
a) Data and Calculations:
Direct Expenses Square Feet Sales
Department
Advertising $ 18,000 1,120
Administrative 25,000 1,400
Shoes 103,000 7,140 $273,000
Clothing 15,000 4,340 77,000
Total $161,000 14,000 $350,000
Allocation of Utilities Expense of $64,000
Rate
Advertising (1,120/14,000 * $64,000) = $5,120
Administrative (1,400/14,000 * $64,000) = $6,400
Shoes (7,140/14,000 * $64,000) = $32,640
Clothing (4,340/14,000 * $64,000) = $19,840
Advertising $ 18,000 + $5,120 = $23,120
Administrative 25,000 + $6,400 = $31,400
Shoes 103,000 + $32,640 = $135,640
Clothing 15,000 + $19,840 = $34,840
Advertising expenses consumed by:
Shoes 90/120 * $23,120 = $17,340
Clothing 30/120 * $23,120 = $5,780
Administrative expenses consumed by:
Shoes $273,000/$350,000 * $31,400 = $24,492
Clothing $77,000/$350,000 * $31,400 = $6,908
what price would an individual be willing to pay today for a stock that is expected to sell for $100 two years from now and which pays an annual dividend that is $6.00? assume the individual has a discount rate of 8% (0.08).
The individual be willing to pay today for a stock Ptoday will be $96.43.
What is a Stock?A sort of asset known as a stock represents a small portion of ownership in a company. If you buy a company's stock, a share, or a small ownership part in it, is yours. Investors buy shares in businesses they believe will increase in value. The value of the remaining stock increases as a result. According to the total number of shares, each share of stock corresponds to a small portion of the company's ownership.
on the basis of the details in the question;
the Dnext_year and Din_two_years will = $6.00.
The Pin_two_years will = $100.00 and i = (0.08)
Ptoday will be $96.43.
To know more about Stock, visit:
https://brainly.com/question/1193187
#SPJ4
What are three examples of artificial intelligence?
One of the most prevalent examples of artificial intelligence (AI) in daily life is found in Siri, Alexa, and Cortana.
How does artificial intelligence work?Artificial intelligence is when machines, digital computing systems, simulate human intelligence operations. Expert systems, NLP, voice recognition, and computer vision are a few examples of specialized AI applications.
What is artificial intelligence's core tenet?The foundation of artificial intelligence is the idea that human intelligence can be described in a way that makes it simple for machines to duplicate it and carry out activities of all complexity levels. Simulating human cognitive function is one of artificial intelligence's objectives.
To know more about artificial intelligence visit:
https://brainly.com/question/22678576
#SPJ4
what do the three theories indicate regarding the actions management should take with respect to dividend payouts?
Here are three hypotheses: Dividends are meaningless: Investors are unconcerned about payment. Bird in hand: High payouts are preferred by investors. Investors favor a low payment, which leads to growth.
Company executives are frequently the largest owners and stand to benefit the most from a high dividend program. Most businesses consider dividend policies to be an essential component of their overall business strategy. Management must make decisions on dividend size, timing, and a variety of other factors that affect dividend distributions. Dividend policies are classified into three types: steady dividend policies, constant dividend policies, and residual dividend policies.
Dividend Policy That Is ConsistentA steady dividend strategy is the simplest simple and often utilized. The policy's purpose is to provide a consistent and predictable dividend distribution each year, which is what most investors demand. Investors receive a dividend whether earnings are up or down.
Policy of Constant DividendsThe main disadvantage of the steady dividend policy is that investors may not receive dividend increases during boom years. A corporation with a continuous dividend policy pays out a proportion of its earnings as dividends every year. This exposes investors to the whole range of earnings volatility.
Policy on Residual DividendsResidual dividend policy is likewise erratic, although some investors believe it is the only suitable dividend policy. With a residual dividend policy, the corporation pays out any remaining dividends after paying for capital expenditures (CAPEX) and working capital.
To know more about dividend policies:
https://brainly.com/question/16014276
#SPJ4
at december 31 riverbed corporation had a deferred tax liability the deferred tax liability is the corporation's 2026 current tax expense what amount should riverbed report as total income tax
The amount should riverbed report as total income tax is 4%
What is Income tax?The word "income tax" refers to a category of tax that governments levy on revenue produced by organisations and people under their control. Taxpayers are required by law to file an income tax return each year in order to establish their tax liabilities.Governments receive funding from income taxes. They are used to pay for debts owed to the government, fund public services, and supply residents with goods. Many states and municipal governments, in addition to the federal government, also demand payment of income tax. In order to support the Civil War's funding, the United States enacted the first income tax in 1862. The tax was eliminated following the war, but after the Revenue Act of 1913 was passed, it was reintroduced.To learn more about income tax refer to:
https://brainly.com/question/12217635
#SPJ4
question content area which of the following should be shown on a statement of cash flows under the financing activities section? a.the purchase of a long-term investment in the common stock of another company b.the issuance of a long-term note to acquire land c.the payment of cash to retire a long-term note d.the proceeds from the sale of a building
Bond issuance would be noted in the Financing Activities section of a statement of cash flows.
Where is reporting on financial activities done?The cash flow statement's financing activity focuses on how a company obtains capital and returns it to investors via capital markets. Along from paying cash dividends, adding or altering debts, and issuing and reselling more stock, these actions also include these. The quantity of short-term or long-term liabilities that a company reports on its balance sheet depends on its financing activities. Financial commitments that must be repaid within a year are referred to as short-term liabilities and are listed in the balance sheet's current liabilities column. Examples of financing activities include issuing bonds and shares, taking out loans, paying off debt, repurchasing shares, etc. Analysts and investors view a company's capital structure as a key barometer of its financial health because it is immediately impacted by these actions.
To know more about financial activities visit:
brainly.com/question/28736657
#SPJ4
What are the 4 types of pricing?
Small business owners frequently employ four different pricing strategies: demand pricing, markup pricing, competitive pricing, and cost-plus pricing.
- Competitive pricing is the practise of proactively selecting price points for your goods or services based on competitors pricing in your market or niche. It differs from basing prices merely on business costs or target profit margins.
- Demand pricing is the process of setting a price based on the relative demand for the good, as shown by the elasticity of the product's demand.
- The difference between an item's selling price and the cost to produce and market it for sale is referred to as "markup pricing." The markup is typically specified as a fixed percentage, and it is calculated by adding that % to the item's real cost.
- Cost-plus pricing involves increasing the product's unit cost by a predefined fixed percentage to calculate the selling price of the product (referred to as a "markup").
To know more about pricing, kindly click on the link below :
https://brainly.com/question/11999225?referrer=searchResults
#SPJ4
Is Lower credit usage better?
A lower utilization rate is often beneficial for your credit scores as a higher utilization rate may be a warning that you'll have problems making timely payments on your debts.
What is the importance of credit usage?Your payment ratio is a crucial sign of loan security. One of the most crucial aspects of your credit score is your credit utilization ratio, which must be kept low to achieve high ratings.
Credit use rate is a significant factor in borrowing risk. Credit utilization makes up 30% of your credit score, so it's a good idea to maintain as much of your credit open as you can.
Learn more about credit usage, here:
brainly.com/question/25668115
#SPJ4
a person who volunteers to act as an agent with no expectation of being paid for the services is a(n): a.exceptional agent. b.one-time agent. c.agent who has an agency coupled with an interest. d.gratuitous agent.
Gratuitous Agent, when a person volunteers with no expectation of being paid for their services Subagent.
What is Gratuitous Agent?Gratuitous agents are those whom their employers or principals do not compensate for their work. The person who acts as a gratuitous agent cannot be forced to carry out their duties as an agent. However, there is no legal obligation on a gratuitous agent to follow a principle of good faith.A gratuitous agent is a person who is not paid by a principal for the work s/he does. A person who acts as a gratuitous agent can never be forced to work as an agent. However, a person acting as a gratuitous agent has to follow a principle of good faith.To learn more about gratuitous agent refer to:
https://brainly.com/question/29819716
#SPJ4
What does oligopoly mean in marketing?
A market with an oligopoly has a small number of businesses that are aware of their interdependence in terms of price and production strategies.
Exactly what is oligopoly?An oligopoly develops when a small group of significant producers or sellers control a considerable portion of the market or an entire industry. Oligopolies are frequently created as a result of the goal to maximize profits and can result in corporate cooperation. The results include less competition, higher consumer prices, and lower employee compensation.
Some of the businesses that have been labeled as oligopolistic include civil aviation, energy suppliers, telecommunications firms, rail freight markets, food processing, funeral services, sugar refining, beer production, pulp and paper manufacturing, and auto manufacturing.
To know more about Producers, visit:
https://brainly.com/question/30064002
#SPJ4
What are 2 examples of opportunity costs?
Answer: time spent studying and that money to spend on something else and a business owner wants to add a new product to the lineup
Explanation:
Do sales taxes fund federal state and local government?
The federal government does not tax real estate or impose a national sales tax. Instead, it nearly exclusively collects money from income levies.
Do sales taxes support local, state, and federal government funding?The three primary sources of tax revenue for state and municipal governments are income, sales, and property taxes. While sales and property taxes provide for the majority of state tax revenue, property taxes still serve as the primary financing source for local governments, including school districts.
Where does sales tax money go?States and local municipalities utilize sales taxes, although they differ from jurisdiction to jurisdiction, to raise money. Sales taxes are levied on the majority of goods and services in 45 states, Washington, D.C., and Puerto Rico, frequently as a fixed rate.
To know more about sales taxes fund visit:-
https://brainly.com/question/11115389
#SPJ4
la cocina, a nonprofit organization, mentors low-income and immigrant women entrepreneurs. it helps them launch and develop their food-related businesses by offering them kitchen space and technical assistance. la cocina is an example of a(n)
A cocina is an example of venture capital. The money given by investors to tiny or start-up firms with significant development potential is referred to as venture capital.
What do you mean by venture capital?Venture capital (VC) is a type of private equity and a form of finance that investors offer to start-up enterprises and small businesses with the expectation that they would see long-term growth.The usual sources of venture capital include wealthy investors, investment banks, and other financial institutions.Is venture capital a startup?Venture capital (VC) is a type of private equity that provides funding for early-stage startups and developing businesses with little to no operating history but high growth potential. In exchange for funding, managerial experience, and technological help, startup businesses sell ownership holdings to venture capital funds.A cocina is an example of venture capital. The money given by investors to tiny or start-up firms with significant development potential is referred to as venture capital.
To know more about venture capital, visit:
https://brainly.com/question/28462236
#SPJ1
How should companies and investors measure success in emerging markets?
Answer:
Financial performance: This includes measures such as revenue, profit, and return on investment (ROI). Companies and investors may also consider measures such as earnings per share (EPS) and net income.
the following financial information is from shovels construction company: accounts payable $ 13,000 buildings 87,000 cash 10,600 accounts receivable 10,300 sales tax payable 4,000 retained earnings 46,100 supplies 41,400 notes payable (due in 18 months) 30,000 interest payable 2,600 common stock 53,600 what is the amount of current assets, assuming the accounts above reflect normal activity?
The amount of current assets to Shovels Construction Company, assuming normal activity, is $ 62, 300
How to find the current assets ?The current assets of a company are those that the company owns and will derive financial benefit from, within the period of a year or that financial trading period.
The current assets in this case, to the company of Shovels Construction Company are:
= Cash + Accounts receivable + Supplies
= 10, 600 + 10, 300 + 41, 400
= $ 62, 300
In conclusion, the current assets are $ 62, 300.
Find out more on current assets at https://brainly.com/question/24848903
#SPJ1
Movements toward sustainability and corporate responsibility often
A.
include monetary support of local schools and charities.
B.
include green initiatives.
C.
result in increased demand for the company's product or service.
D.
All of the above are correct.
All of the following relate to part of the value chain for a clothing company except
A. administrative costs. B. cost of shipping products to retailers. C. salaries of clothing designers. D. cost of advertising new products.
All of the following relate to part of the value chain for a clothing company except administrative costs. The correct options are D and A respectively.
What are the relationship of sustainability and corporate responsibility?CSR and corporate sustainability both concentrate on assisting businesses in operating in a way that enables them to be profitably ethical—never at the expense of others. Companies can have a positive impact on their surroundings through CSR and corporate sustainability. These two ideas are connected in several ways.
Movements toward sustainability and corporate responsibility often include monetary support for local schools and charities, include green initiatives, and result in increased demand for the company's product or service.
Thus, the ideal selections are options D and A respectively.
Learn more about sustainability and corporate responsibility here:
https://brainly.com/question/18237079
#SPJ4
What benefits did the TVA provide?
Answer:
Explanation:
This act of May 18, 1933, created the Tennessee Valley Authority to oversee the construction of dams to control flooding, improve navigation, and create cheap electric power in the Tennessee Valley basin
What procedures do you follow to protect classified information while working on it?
You will discover in this course the precautions you and your business need to take to secure classified information from theft or compromise.
Which protocols do you adhere to in order to safeguard confidential or sensitive information?You must alert the security personnel or the information custodian of it. Never let the information sit in an unattended state. You have three options for handling the information: carrying it with you, giving it to the appropriate person, or locking it away in a secure location before telling the appropriate people.
Why is it crucial to safeguard classified information?Damage could occur at any classification level. Compared to secret and top-secret papers, which will harm the nation's security or wealth, official documents may have a more widespread negative impact.
To know more about sensitive information visit:
https://brainly.com/question/30034943
#SPJ4
Companies process credit and debit card transactions internally.
True or False.
Companies process credit and debit card transactions internally.
The statement is false.
The sum of the transactions is charged to the cardholder's account by the issuing bank.A consumer enters their debit card information to complete a purchase. A card terminal device is used to swipe, tap, or dip the card. Your point-of-sale system (POS system) reads the card information from this transaction and sends the information to the client's card processing network (Visa, MasterCard, etc.).Retailers provide their payment processor batches of approved transactions. The payment processor delivers transaction data to the card associations, who then work with the network's issuing banks to arrange the appropriate debits.To know more about Credit card here
https://brainly.com/question/26857829
#SPJ4
How many mutations cause Tay-Sachs?
In people with the condition, the HEXA gene has more than 80 distinct mutations that have been discovered.
What number of chromosomes is Tay-Sachs disease?A faulty gene on chromosome 15 is responsible for Tay-Sachs disease. A child has a 25% chance of contracting the illness if both of their parents have the faulty Tay-Sachs gene. To be ill, the child needs to inherit two copies of the flawed gene from each parent.
How probable is Tay-Sachs disease?A Tay-Sachs genetic mutation (or variant gene) affects roughly 1 in 300 individuals who do not come from high-risk backgrounds. For those of Ashkenazi Jewish origin, the mutant gene is carried by about 1 in 30 individuals. Affected babies make up about 1 in 3,600.
To learn more about Mutation here:
https://brainly.com/question/17106056
#SPJ4
Question 1 / 11 Owner distribution is a(n) account. liability asset expense O equity
Owner Distributions in Partnership Equity Accounts Owner distributions, also known as owner draw accounts, show the total amount of money taken out of the company by the owners. Distributions represent a deduction in company assets and equity.
1. Assets: They are two types of tangible and intangible items that the company owns that have value like cash, computer systems, and patents.
2. Liabilities: money that the company owes to others example: mortgages, and vehicle loans.
3. Equity: That portion of the total assets that the owners or stockholders of the company fully own; have paid for outright.
4. Revenue or income: money that the company earns from its sales of products and services, and interest and dividends earned from marketable security.
5. Expenses: Money the company spends to produce the goods and services that it sells example: office supplies, utilities, and advertising.
To know more about Distribution:
https://brainly.com/question/28319458
#SPJ4
can you provide your availability for 2 pm tuesday (2023/1/3), and 2 pm wednesday(2023/1/4) to discuss this further?
my availability for 2 pm tuesday I can work just about whenever you need me to because I am adaptable. I simply can't wait to get on board and pitch in when I'm most needed. Why It Functions This response or one similar to it could be used with full-time, part-time, or shift work.
What best sums up your availability?
Briefly describe the reasons why your schedule is not completely open. Unless your interviewer requests more information, you do not need to go into detail. If certain days or times don't work for you, let them know. Then let them know that you are available and prepared to assist them whenever they need you.When are you available for an interview?
Open availability makes it simpler for the recruiting manager to organize an interview because it signifies that your calendar is clear of any upcoming conflicts. Open availability in the context of employment refers to your prospective work schedule.
Learn more about availability here:
https://brainly.com/question/1808026
#SPJ4
What are the disadvantages of a closed economy?
A closed economy is an economic system in which trade with other countries is restricted or prohibited. This means that the country is self-sufficient and relies solely on domestic production to meet its needs.
There are several disadvantages to a closed economy:
Limited access to resources: A closed economy may not have access to all the resources it needs to produce goods and services. This can lead to shortages or higher costs for certain goods.
Limited access to technology: A closed economy may not have access to the latest technology and innovations that are developed in other countries. This can make it difficult for the country to remain competitive and may limit its economic growth.
Limited market size: A closed economy has a smaller market for its goods and services, which can limit the potential for economic growth and development.
Lack of specialization: A closed economy may not have the opportunity to specialize in certain industries or sectors, which can lead to inefficiencies and a lack of competitiveness.
Lack of diversification: A closed economy may be more vulnerable to economic shocks and fluctuations, as it does not have the diversification of a more open economy.
To learn more about different types of economies, check out https://brainly.com/question/28339801
What provide services on account? A. Account payable, B. Service revenue, C. Account receivable, D. Cash Is debit to allowance for uncollectible accounts stand for adjustment for uncollectible accounts at year-end? Under the allowance method, which of the following does not change the balance in the Accounts receivable account? A. Return on credit sales. B. Collections on customer accounts. C. Bad debt expense adjustment. D. Write offs
Offer account journal entry services When a business offers service on account, it commits to working for the client initially and anticipates receiving money later. It involves the credit selling of a service.
The services may be rendered for immediate cash payment or, more frequently, on account with an invoice due from the client later. The term "trade accounts receivable" or "trade debtor" refers to the amount of money owing by the client to the company as a result of the invoicing of services on account. Services for Pay. When a firm offers its services to a client, service income is produced. The services might be offered in exchange for instant payment in cash .
To learn more about services please click on below link
https://brainly.com/question/29979103
#SPJ4
How does the government affect entrepreneurship?
The government impacts entrepreneurship by assisting entrepreneurs through economic policy, infrastructure development, business development help, and the intrusion and mitigating of regulations.
Governments and businesses are related to each other. Governments should provide an encouraging environment for businesses. Governments can do some activities to minimize the risk of starting businesses and assist entrepreneurs, such as:
Lower Interest Rates. This stimulates businesses to enlarge, and permits consumers to face temporary increases in discretionary income.Provide More Funding. Loans and grant programs provided directly to entrepreneurs are one way to use tax revenue to encourage business activity and give assistance to startup entrepreneurs.Give Tax Incentives. Tax incentives to particular types of businesses, or incentives for consumers who patronize particular industries, can provide fledgling markets a powerful support.Learn more about entrepreneurs at: https://brainly.com/question/13897585
#SPJ4
What are the 4 sprint events?
The scrum master and the scrum team must adhere to a repeating procedure known as a sprint cycle over the duration of a sprint.
Sprint Planning: Stakeholders and the development team meet down for the sprint planning session to decide on the sprint goal.
Daily Scrum: Project managers or scrum masters may remain up to date on all of the team member's activities and progress by attending the daily standup.
Sprint Review: The agile team presents their work to stakeholders and other team members at the review session.
Sprint Retrospective: At the conclusion of a sprint cycle, the team discusses what went well and poorly and offers suggestions for how to improve the following sprint. It's a chance to grow from your errors and improve the sprint cycle.
To know more about stakeholders click on the link below:
https://brainly.com/question/15532995
#SPJ4
in the diagram to the right, point a provides the _____, point b the _____, and point c the _____.
In the diagram on the right, points a and b represent the equilibrium price and market equilibrium while points c represent the equilibrium quantity.
The equilibrium price, which is obtained when the quantity of the good that consumers prefer to buy, or quantity requested, equals the quantity that producers wish to sell, or quantity provided, is the only price at which consumer and producer plans can be reconciled. This common quantity is referred to as the "equilibrium quantity." When supply and demand, for instance, are balanced and the values of other economic variables do not change in the absence of outside forces, the economy is said to be in equilibrium. For instance, equilibrium occurs in the traditional text ideal competition when the quantity demanded and the quantity supplied are equal. Economic equilibrium is a state that an economic player cannot change by any method.
learn more about equilibrium price here
https://brainly.com/question/28527601
#SPJ4
What is the relationship between GDP and inflation?
GDP growth over time results in inflation, which, if unchecked, could eventually turn into hyperinflation.
What is hyperinflation?Hyperinflation is the phrase used to describe exceptionally high inflation that is constantly rising in the economics world. The real value of local currency is rapidly lost as prices rise for everything. As a result, people retain less of that currency and often move to other, more stable currencies. A sharp and persistent increase in money supply, nominal cost of goods, and nominal pricing of goods is a sign of hyperinflation. Contrastingly, moderate inflation is characterized by a steady increase in prices that is generally not noticeable until historical market prices are examined. Hyperinflation and fiscal stress on the government are typically linked to a decline in aggregate supply, an increase in export prices, or other problems that make it difficult for the government to collect taxes.
To learn more about hyperinflation, visit:
https://brainly.com/question/29615008
#SPJ4
If bonds from deegan pharmaceuticals are selling at 104. 682, which broker will give diana the better deal, and by how much?.
Broker Q imposes a fixed fee of $32.50 for each bond acquired, whereas Broker P assesses a commission of 4.4% of the bond's market value.
Which broker will offer Diana a better deal, and by how much, if Deegan Pharmaceuticals' bonds are selling for 104.682? Diana will receive a better bargain from Broker P. Diana is looking for a broker to assist her in buying a $1,000 par value corporate bond from Deegan Pharmaceuticals. Broker Q imposes a fixed fee of $32.50 for each bond acquired, whereas Broker P assesses a commission of 4.4% of the bond's market value. Sylvia will pay $156.02 less for Broker U's bond bundle than for Broker V's. Diana is attempting to pick a broker.
To learn more about Pharmaceuticals please click on below link
https://brainly.com/question/16582232
#SPJ4
The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case.(a) Employees who have physical custody of assets do not have access to the accounting records.Select the principle of internal control Independent internal verificationDocumentation proceduresEstablishment of responsibilityPhysical controlsHuman resource controlsSegregation of duties(b) Each month, the assets on hand are compared to the accounting records by an internal auditor.Select the principle of internal control Human resource controlsPhysical controlsEstablishment of responsibilityDocumentation proceduresSegregation of dutiesIndependent internal verification(c) A prenumbered shipping document is prepared for each shipment of goods to customers.Select the principle of internal control Physical controlsIndependent internal verificationHuman resource controlsSegregation of dutiesDocumentation proceduresEstablishment of responsibility
(a) Employees who have physical custody of assets do not have access to the accounting records - Segregation of duties
(b) Each month, the assets on hand are compared to the accounting records by an internal auditor - Independent internal verification
(c) A prenumbered shipping document is prepared for each shipment of goods to customers - Documentation procedures
What is the segregation of duties?The idea of assigning a task to more than one person is known as separation of duties. Organizations use it as an administrative measure to guard against security breaches such as fraud, sabotage, theft, and information misuse.
Everyone in the business has access to the documents that describe your documented procedures. They detail every action that must be taken and consistently repeated for specific tasks.
Data prepared by employees is examined, compared, and reconciled as part of independent internal verification. Verification should be conducted on a routine basis or on an unexpected basis.
Learn more about segregation of duties on:
https://brainly.com/question/28289850
#SPJ1
steve ballmer is considering two projects with cash flows as follows: year project a project b 0 -$20,000 -$20,000 1 4,000 4,600 2 4,000 5,000 3 6,000 6,500 4 5,000 6,000 5 4,800 1,000 what is the cross-over rate?
steve ballmer is considering two projects with cash flows as follows: year project a project b 0 -$20,000 -$20,000 1 4,000 4,600 2 4,000 5,000 3 6,000 6,500 4 5,000 6,000 5 4,800 1,000.
What is cross over rate?Crossover Rate is the rate of return (alternatively called the weighted average cost of capital) at which the Net Present Values (NPV) of two projects are equal. It represents the rate of return at which the net present value profile of one project intersects the net present value profile of another project.The crossover rate is useful for measuring the rates of return for two projects when their net present values are equal. When analyzing the crossover rate, you can use the results to determine whether a specific project is more profitable than another.Understanding how the internal rates of return fluctuate can help you evaluate the capital costs for each project.To learn more about NPV refer to:
https://brainly.com/question/18848923
#SPJ4