The Arab Union Company is studying a new 5-year project. This project requires initial fixed assets of 4 million riyals. Fixed assets will be depreciated using the straight-line method to reach zero at the end of the four-year period, at which point these assets will be worthless. The annual sales of this project are also estimated at 2,000,000 units annually Selling the unit is 2 riyals, and the variable cost of the unit is 1 riyal, and the fixed cost without property is $100,000. If the tax rate is 30%, what is the operating cash flow for the project? And if the project requires an initial investment in net working capital of $500,000 and the market value of the fixed assets will be $400,000 at the end of the project. What is the net present value of the project if the discount rate is 8% and is it acceptable or not (5 degree)
Answers
It should be noted that based on the information, the operating cash flow for the project is 437,500 riyals.
How to calculate the valueAnnual sales: 2,000,000 units
Selling price per unit: 2 riyals
Total revenue = Annual sales * Selling price per unit
Total revenue = 2,000,000 * 2 = 4,000,000 riyals
Variable costs:
Variable cost per unit: 1 riyal
Total variable costs = Annual sales * Variable cost per unit
Total variable costs = 2,000,000 * 1 = 2,000,000 riyals
Fixed costs:
Fixed costs without property = $100,000 (assumed in dollars, we will convert it to riyals)
Fixed costs in riyals = Fixed costs without property * Conversion rate
Assuming 1 dollar = 3.75 riyals (conversion rate)
Fixed costs in riyals = $100,000 * 3.75 = 375,000 riyals
Depreciation:
Initial fixed assets: 4,000,000 riyals
Depreciation period: 4 years
Straight-line depreciation per year = Initial fixed assets / Depreciation period
Depreciation per year = 4,000,000 / 4 = 1,000,000 riyals
Taxable income:
Taxable income = Total revenue - Total variable costs - Fixed costs - Depreciation
Taxable income = 4,000,000 - 2,000,000 - 375,000 - 1,000,000 = 625,000 riyals
Taxes:
Tax rate = 30%
Taxes = Taxable income * Tax rate
Taxes = 625,000 * 0.30 = 187,500 riyals
Operating cash flow:
Operating cash flow = Taxable income - Taxes
Operating cash flow = 625,000 - 187,500 = 437,500 riyals
The operating cash flow for the project is 437,500 riyals.
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Related Questions
do office and sales salaries fall under factory overheads in manufacturing accounts
Answers
Answer:
No, office and sales salaries do not fall under factory overheads in manufacturing accounts. Factory overheads are the indirect costs that are associated with the production of goods that cannot be directly attributed to a specific product, such as utility bills, rent, equipment depreciation, and maintenance costs. Salaries for office and sales staff are considered indirect costs as they are expenses incurred to support the overall operation of the business, not just the production of goods. These salaries are typically classified as selling and administrative expenses, which are separate from the factory overheads.
Over a particular period, an asset had an average return of 6.9 percent and a standard deviation of 9.9 percent. What range of returns would you expect to see 95 percent of the time for this asset
Answers
We can estimate that we would expect to see returns for this asset falling within the range of -12.9 percent to 26.7 percent 95 percent of the time.
Based on the provided information, we can use statistical methods to estimate the range of returns that we could expect to see 95 percent of the time for this asset.
We know that the average return for the asset over the particular period was 6.9 percent, and the standard deviation was 9.9 percent. The standard deviation measures the volatility of returns, indicating how much the returns fluctuate around the average.
Assuming a normal distribution of returns, we can use a statistical tool called the empirical rule (also known as the 68-95-99.7 rule) to estimate the range of returns that we could expect to see 95 percent of the time.
According to the empirical rule, for a normal distribution of returns, approximately 68 percent of the returns will fall within one standard deviation of the mean, 95 percent of the returns will fall within two standard deviations of the mean, and 99.7 percent of the returns will fall within three standard deviations of the mean.
Using this rule, we can estimate that 95 percent of the returns for this asset would fall within a range of approximately -12.9 percent to 26.7 percent.
To calculate this range, we first determine the distance from the mean to two standard deviations:
2 x 9.9 percent = 19.8 percent
Then, we add and subtract this value from the mean:
6.9 percent + 19.8 percent = 26.7 percent
6.9 percent - 19.8 percent = -12.9 percent
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Explain the various segments of the NSE
Answers
Answer:
NSE provides trading in the following two segments (i) Whole Sale Debt Market Segment This segment provides a trading platform for a wide range of fixed income securities that include central government securities, treasury bills, state development loans, bonds issued by public sector undertakings, floating rate bonds, ...
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answers.
Answers
Answer:
Option 1 and 2
Explanation:
Complete Question
Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?
CHECK ALL THAT APPLY.
High school athletes stop shopping there. The inventory of sports socks goes unsold. Publicity for the store declines. Profits decline because dress shoes cost less than sneakersSolution
Sole Sister Shoe Store chooses to sell dress shoes over sneakers because the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence Sole Sister Shoe Store started selling dress shoes
Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes
Answer:
A - high school athletes stop shopping there.
B - The inventory of sports socks goes unsold.
Explanation:
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in which subject are you talking about ?
but it means too keep.
Answers
Answer:
Sorry, cannot help you there................
For project Z, year 5 inventories increase by $6,000, accounts receivable by $4,000, and accounts payable by $3,000. Calculate the increase or decrease in working capital for year 5.
a.) decreases by $1,000
b.) increases by $7,000
c.) decreases by $7,000
d.) increases by $5,000
Answers
$7,000 is the increase or decrease in working capital for year 5. The correct answer is b.) increases by $7,000.
To calculate the increase or decrease in working capital for year 5, we need to use the formula for working capital:
Working capital = Current assets - Current liabilities
In this case, the increase in inventories and accounts receivable are considered current assets, while the increase in accounts payable is considered a current liability.
So, we can plug in the given values into the formula:
Working capital = ($6,000 + $4,000) - $3,000
Working capital = $10,000 - $3,000
Working capital = $7,000
Therefore, the increase in working capital for year 5 is $7,000. The correct option is b.
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Hi I need 3 sentences abo8ut why you should buy the tesla stock
Answers
Answer:
1. The world is shifting to electric vehicles
2. The business is over the profitability hump
3. Optionality could lead to massive new sources of revenue
Explanation
THE EXPLANATION FOR NUMBER 1: In the first half of 2021, global electric vehicle (EV) sales were 2.6 million units. It doesn't sound like a lot. But unit growth was up 160% over the same period last year. That's more than six times faster than the overall auto market.
THE EXPLANATION FOR NUMBER 2:In 2017, famed investor Jim Chanos said about Tesla: "We think the equity is worthless." As silly as the projection looks in hindsight, Tesla CEO Elon Musk has since admitted that the company was about a month away from bankruptcy at the time. Those days are long gone. The company is now solidly profitable with industry-leading gross margins.
EXPLANATION FOR NUMBER 3:
While the company should be praised for the turnaround, many shareholders have their eyes fixed on new markets the company could disrupt. Led by sanguine analysis from Cathie Wood's ARK Invest, and the stock's inclusion in several of ARK's high-profile exchange-traded funds, Tesla now sports a market capitalization of $777 billion.
hope this helps sorry this is alot
If the order quantity doubles but the flow rate remains constant, what happens to the average amount of time a unit spends in inventory
Answers
Answer:
Increases by more than 50%
Explanation:
In the case when the order quantity is doubled but at the same time the flow rate is smae so the average time for a unit would be increased by more than 50% as if there is an increased in the demand rate so the order quantity is also increased so if the number of units generated doubles than the activity per time is also rised by 50% thats why it should increased more than 50%
Donald is a business development executive in a big retail company based in Omaha. His company now wants to expand and has sent Donald as their representative. Donald is also authorized to deal and negotiate with different vendors directly and in his own capacity. What role is Donaldplaying as per the contract law?
Answers
Answer:
C. Agent
Explanation:
Agent Law- the agent deals with third parties on behalf of the company in a contract and the company defines the control an agent can exert
According to the reading, what might support a premium pricing strategy? a) Forming your business as a corporation b) Fresh ingredients c) 24 hour operation d) None of the above
Answers
Answer: Fresh ingredients
Explanation:
if willis puts 6,800 into a savings account that has an interest rate of 6.5% when he was 12 and now is 30 how much money will wilis have in the account?
Answers
after 18 years, Willis will have a total of $15,066.22 in his savings account. If Willis puts $6,800 into a savings account with an interest rate of 6.5% when he was 12 years old and leaves it untouched until he turns 30, he will have a significant amount of money in his account.
The interest earned on the account over 18 years will be compounded annually, meaning that the interest earned in one year will be added to the account balance and earn interest in subsequent years.
To calculate the final amount in Willis' account, we can use the formula A = P(1 + r/n)^(nt), where A is the final amount, P is the initial principal, r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, P = $6,800, r = 6.5%, n = 1 (since the interest is compounded annually), and t = 18.
Plugging in these values, we get A = $6,800(1 + 0.065/1)^(1*18) = $15,066.22. Therefore, after 18 years, Willis will have a total of $15,066.22 in his savings account.
It's important to note that this calculation assumes that Willis does not withdraw any money from the account during the 18-year period. If he were to withdraw funds or deposit additional funds, the final amount in the account would be different.
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why might some think that the investigation would have been more acceptable if it was focused on a company (as when seeking competitor intelligence) rather than individuals?
Answers
Some might think that the investigation would have been more acceptable if it was focused on a company rather than individuals as when seeking competitor intelligence.
It's because intelligence-gathering about the competitor is seen as a common business practice. It is not illegal to do so, and many corporations hire specialists to acquire this information. It is often used to get a leg up on the competition and gain an advantage in the market. Companies that use this method, which is legal, are able to do so without any legal repercussions. When it comes to individuals, though, the situation is different. It is illegal to acquire, sell, or use insider information about a company, as well as to engage in insider trading, and those who do so risk going to prison. The investigation of individuals is more difficult to carry out, as well as being more complex than investigating a company. It may be more challenging to come up with enough evidence to charge someone with insider trading or another crime. As a result, investigators frequently focus on firms since this is typically the easiest way to uncover fraudulent activity.
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Let C(x) = 11x + 6000 be the cost function and R(x) = 16x be the revenue function
depending on the quantity of a product. (Hint: Ex in P. 6 of Ch 1.3 in LN).
a. Find the unit cost of the product.
b. Find the fixed cost of the product.
c. Find the profit function of the product.
d. Find the break even point of the product.
Answers
The unit cost is (11x + 6000)/x, the fixed cost is $6000, the profit function is 5x - 6000, and the break-even point is at 1200 units.
a. The unit cost of the product can be found by dividing the cost function C(x) by the quantity x:
Unit Cost = C(x)/x = (11x + 6000)/x
b. The fixed cost of the product is the cost when the quantity is zero, which is the value of the constant term in the cost function:
Fixed Cost = $6000
c. The profit function is obtained by subtracting the cost function C(x) from the revenue function R(x):
Profit = R(x) - C(x) = 16x - (11x + 6000) = 5x - 6000
d. The break-even point is the quantity at which the revenue equals the cost, or when the profit is zero. We can set the profit function equal to zero and solve for x:
5x - 6000 = 0
5x = 6000
x = 1200
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Is the sales manager a subordinate? explain why?
Answers
please help me!!! I literally have no clue what it is
Answers
Answer:
Critical Thinking,Mathematics, and Operation and Control.
Explanation:
Consumers tend to purchase a good at a lower than at a higher price. Why (state any assumptions made)? Do consumers always behave this way? Explain your response.
Answers
According to the law of demand, the price of a good is negatively related to the quantity demanded all other things remaining equal.
Consumers do not always buy good at a lower price than at a higher price.
What is the law of demand?According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. there is an inverse relationship between price and quantity demanded.
Consumers do not always buy goods at a lower price than a higher price. For example, for luxury goods, consumers would prefer to buy it at a higher price than at a lower price. This is because luxury goods are used to show wealth. If the price of a good that is considered to be used solely be wealthy people declines, some rich people would not want to purchase the goods again because it is now affordable by the masses.
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Which of the following is least likely to help you choose an academic major? A. your guidance counselor B. An intership C. An intrest invitory D. The measure your friend chooses
Answers
The following has the lowest likelihood of assisting you in selecting an academic major is your friend's choice of action. Therefore, choice (D) is the appropriate one.
The academic major to which a first-year student formally commits is called their major. An undergraduate degree is awarded to students who successfully complete all of the major-required courses. When referring to the academic field undertaken by a graduate student or postgraduate student in a master's or doctorate assisting program, the term major (also known as concentration, particularly at private colleges) is occasionally used administratively.
Completing a mix of mandatory and optional courses in the subject of choice is often necessary to declare a major. From program to program, a student's freedom to select courses varies.
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Answer:
D. The major your friend chooses
Explanation:
Asser and his partner Ali decided to start a business selling flowers called A and A Blooms. They agreed the business
objectives they would set. There are several other shops in the town and much competition. Asser and Ali had little
cash to start the shop, BUT after 5 years running, it is still open. Business objectives have changed, there are plans to
open 2 or 3 new shops, perhaps by taking over some of their competitors. The business now employs 5 workers and
uses several local flower growers as suppliers.
a) What is meant by 'business objective'?
[2]
Goals
Direction in which business Сол be succesful
b) Identify two of A and A Blooms' stakeholders, other than workers and suppliers.
[2]
Customers and Community
c) Identify and explain two likely business objectives of Blooms when the business was first established. [4]
Answers
A business objective simply refers to the results that a business wants to achieve. Having a business objective is vital for a business.
It should be noted that business objectives are the measurable results that a business hopes to maintain as the business grows.
The examples of A and A Blooms' stakeholders apart from the workers and suppliers will its shareholders and customers. Stakeholders are affected by the decisions taken by a business.
The two likely business objectives of Blooms when the business was first established include profit maximization and cost minimization.
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Ttttthhhhheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee accounf is not working
Answers
Answer:
Step by step explanation
Need help answer this question please help me
Answers
Answer:
b). 4 and 14 units
Explanation:
The equilibrium point is the intersection of demand and supply curves. It is a condition of no excess or shortage in supply or demand in the market. At equilibrium, the quantity demand matches the quantity supplied.
At the equilibrium situation, buyers are willing to purchase the quantity supplied at the stated price. It implies both suppliers and buyers are happy with the current supply and price.
Prove you know what diminishing marginal utility is by creating an example of your own. Your example
cannot be food related.
Answers
Hi there, I'm not answering this question, sorry.
Your task clearly states you must think of your own example and prove what you know. That's why.
Please, if you're coming onto the Brainly website, at least improve your questions.
A style of leadership where leaders consult with followers who are allowed to participate in decision making is __________.
A) chaotic
B) laissez-faire
C) participatory
D) democratic
Answers
Explanation:
Participative leadership is a democratic leadership style that consists of involving others into decision making. ... Participative leaders are those who consult their team members before taking any decision, or take the decision first and consult their team members second to see if it is acceptable to them.
Answer:
Explanation:c
Which education and qualifications are most helpful for Maintenance, Installation, and Repair careers? Check all that apply. apprenticeships knowledge of engines and machinery leadership physical strength persistence bachelor's degree
Answers
Answer:
1, 2, 4, 5
Explanation:
ty answer above meeeeee
The education and qualifications that are most helpful for Maintenance, Installation, and Repair careers are apprenticeships, knowledge of engines and machinery, physical strength, and persistence Thus, options 1st, 2nd, 4th, and 5th are correct.
What is a repair career?Repair specialists offer upkeep and maintenance services for computers, appliances, computers, machinery, and other systems and equipment. These services may be carried out in the shop or on-site at the client's place of business or house, depending on the type of item that needs repair.
The following degrees and credentials are most beneficial for employment in maintenance, installation, and repair apprenticeships; expertise with machines and engines; physical stamina; persistence.
The individual in question must have had some on-the-job training. Also, the worker has to be physically fit since they may need to move some big machines. Hence, options 1st, 2nd, 4th, and fifth are correct.
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The tiny town of Nemo has three neighborhoods located on a straight line: Neighborhood 1, Neighborhood 2, and Neighborhood 3, with Neighborhood 2 located equidistant between Neighborhood 1 and Neighborhood 3. There is one daycare center, located on Neighborhood 1. There are 10 families residing in each neighborhood, and each family has one child. Each family is willing to pay $70/day for daycare, and prefers daycare closest to its own neighborhood (though at current distances, families will purchase daycare services even if it’s two neighborhoods away). Families are indifferent between any two daycares in the same neighborhood. Suppose that daycare costs $30/day per child to provide. A new daycare center is thinking of opening in Nemo. If both daycares will keep their price at $70/day, which neighborhood should the new daycare open in?
Answers
Answer:
Neighborhood 2
Explanation:
Based on the information given if NEIGHBORHOOD 2 is located between Neighborhood 1 and Neighborhood 3 which means that in a situation where both daycares decide to keep their price at the amount of $70/day, the neighborhood that the new day care should open in is NEIGHBORHOOD 2 reason been that with NEIGHBORHOOD 2 all the families living in both Neighborhoods 2 and Neighborhoods 3 will be attracted to Neighborhoods 2 and on the other hand won't not be attracted to Neighborhood 1, for the amount of $800/day which is calculated as:
(10 Families *2) * ($70 for day care - $30 per child)
20*40= $800/day
Therefore the neighborhood that the new daycare should open in is NEIGHBORHOOD 2
The Upper Tier has a current debt-equity ratio of .52 and a target debt-equity ratio of .45. The cost of floating equity is 9.5 percent and the flotation cost of debt is 6.6 percent. What should the firm use as their weighted average flotation cost?
Answers
Answer: 8.60%
Explanation:
Given the following :
Current debt-equity ratio = 0.52
Target debt-equity ratio = 0.45
Cost of floating equity = 9.5%
Floatation cost of debt = 6.6%
The Weighted average cost is calculated by finding the Weighted average cost of both debt and equity.
1 + 0.45 = 1.45
Weight of debt= 0.45/ 1.45 =0.31034
Weight * cost of debt
0.31034 × 6.6% = 2.0482758
Weight of equity = 1/1.45 = 0.6896551
Weight * cost of equity
0.6896551 × 9.5% = 6.5517241
Sum of both
(6.55 + 2.05) % = 8.60%
The impact of discrimination behaviour to an individual
Answers
Answer:
Discrimination affects people's opportunities, their well-being, and their sense of agency. Persistent exposure to discrimination can lead individuals to internalize the prejudice or stigma that is directed against them, manifesting in shame, low self-esteem, fear and stress, as well as poor health.
Explanation:
Given that bearclaws chooses the profit-maximizing price and quantity, what profit level will it obtain? a. $980. B. $490. C. $700. D. $280
Answers
Given that bearclaws chooses the profit-maximizing price and quantity, yhe profit level will it obtain is D. $280
How to calculate the amountA monopoly maximizes its profit at the quantity where marginal revenue (MR) = marginal cost (MC). As shown in the diagram, the MR curve intersects the MC curve at Q* = 70. The total revenue is calculated as follows: TR = P × Q. At Q* = 70, the price that Bearclaws can charge is P = $14.
Hence, the total revenue at the quantity where Bearclaw maximizes profit is given by: TR = 14 × 70
= $980.
The total cost is calculated as follows: TC = ATC × Q. At Q* = 70, we can see on the diagram that it is where average total cost (ATC) = $10 (draw a straight line from ATC curve at Q = 70 to the P axis to see this value). Hence, the total cost at the quantity where Bearclaw maximizes profit is given by: TC = 10 × 70 = $700.
The profit is calculated as follows:
Profit = TR - TC = 980 - 700
= $280.
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Why might you display data with a data visualization instead of a table?
Answers
Data visualization helps to tell stories by curating data into a form that is easier to understand, pressing the trends and outliers. A good visualization tells a story, removing the noise from data and pressing useful information.
Rather than presenting data in precise values, maps show the patterns that crop or connections between different variables in bar or pie graphs. While maps may immolate some perfection and granularity, they allow for a broader compass of high-position analysis and quicker appreciation of the data.
Data Visualization is easier and faster to understand. Your brain can reuse data in a map in about a quarter an alternate, but it could take several seconds to overlook a table of figures. Also, a visualization can frequently give an environment lacking in a simple table.
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The z critical value ( z-cv) for a 97.8% confidence interval estimation is a. 2.02 b. 1.96 c. 2.00 d. 2.29
Answers
The z-critical value for a 97.8% confidence interval estimation is 2.02.
The correct option is a. 2.02
In statistics, the z-critical value is used to determine the boundaries of a confidence interval. It represents the number of standard deviations from the mean of a normal distribution that corresponds to a specific confidence level.
To calculate the z-critical value for a given confidence level, we look up the value from a standard normal distribution table or use statistical software. For a 97.8% confidence level, we need to find the z-critical value that includes 97.8% of the area under the normal curve.
Looking at the given options, we find that option a, 2.02, is the closest value to the z-critical value for a 97.8% confidence level.
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Why is Netflix's stocks going down?
Answers
Answer:
Netflix stock was falling sharply Wednesday after the streaming giant posted disappointing first-quarter earnings, prompting a flurry of price target cuts and critique from analysts.
Explanation:
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