Bosco Corp. is considering a new product that would require an investment of ₦10 million now, at t = 0. If the new product is well received, then the project would produce after-tax cash flows of ₦5 million at the end of each of the next 3 years (t = 1, 2, 3), but if the market did not like the product, then the cash flows would be only ₦2 million per year. There is a 50% probability that the market will be good. The firm could delay the project for a year while it conducts a test to determine if demand is likely to be strong or weak. The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 10.0%. Calculate the value (in thousands) of the project before and after considering the investment timing option.

Answers

Answer 1

The project's value before the timing option is ₦3,268 (in thousands), while the project's value after the timing option is ₦8,954 (in thousands).

How do we calculate the value of a project?

1. The value (in thousands) of the project before considering the investment timing option can be calculated as follows:

Using the formula for calculating the present value of an ordinary annuity, the present values of cash flows can be calculated as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value cash flows

P = Annual cash flows

r = WACC = 10.0%, or 0.10

n = number of years = 5

Substitute the values into equation (1), we have:

PV when the market is good =  ₦5,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = ₦18,954

PV when the market is bad =  ₦2,000 * ((1 - (1 / (1 + 0.10))^5) / 0.10) = ₦7,582

Project's value before timing option = (Probability the market will be good  * (₦18,954 - ₦10,000)) + (Probability the market will be bad * (₦7,582 - ₦10,000)) = (50% * (₦18,954 - ₦10,000)) + (50% * ((₦7,582 - ₦10,000)) = ₦3,268 (in thousands)

2. The value (in thousands) of the project after considering the investment timing option can be calculated as follows:

Since timing is considered, it means the firm will only invest in the project if the market is strong and the annual cash flow will be ₦5 million without any probability.

Therefore, we have:

Project's value after timing option = ₦18,954 - ₦10,000 = ₦8,954 (in thousands)

3. In addition, the value of option wait can be calculated as follows:

Value of option wait = Project's value after timing option - Project's value before timing option = ₦8,954 - ₦3,268 = ₦5,686 (in thousands)

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Note: This question is incomplete; here is the missing part:

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Answer:

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Answers

Answer:

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Explanation:

Answer:

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Answer:

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Answer:

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S
Alaskan Fisheries, Incorporated, processes salmon for various distributors and it uses the weighted-average meth-
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Work in process inventory, July 1
Work in process inventory, July 31
Pounds of
Salmon
31,000
19,000
Equivalent units of production
Percent Completed
Labor and
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Materials. Overhead
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A total of 460,000 pounds of salmon were started into processing during July. All materials are added at the begin
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Required:
Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead in the
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Answers

The equivalent unit of production for materials would be 5,10,000 and  for labor & overhead would be 4,93,490.

What is an equivalent unit of production?

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Solution:-

                                                    Material                      Labor & overhead

Work in process, July 1            

31,000* 100%                                 31,000

31,000* 59%                                                                             18,290

Units started and completed      460,000                          460,000

Work in process, July 31                

19,000* 100%                                   19,000

19,000* 80%                                                                               15,200

Equivalent unit of production   5,10,000                           4,93,490    

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Option A, in which supervisors must build mutual trust and be open to employee challenges, is the appropriate response to this.

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Term life insurance has a drawback however which is that it has no cash value at the end of the term. The insurance company will simply take all the cash that one has paid and give nothing back.

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Answers

Answer:

A. cash

Explanation:

cash is used in finance

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[Hints: Mixed cash flow]

Answers

The present value of the offer is $145,466.83

What is the present value?

The first step is to determine the present value of the growing annuity. The formula that would be used is:

[tex]\frac{P}{r - g}[/tex] x [tex][1 - \frac{1 + g}{1 + r} ^{n} ][/tex]

Where:

p = base salary r = discount rate g = growth raten = number of years

$35,000 / (0.12 - 0.04) = 437,500

1 - (1.04/0.12)^5 = 0.31

0.31 x 437,500 = $135,466.83

Present value =  $135,466.83 + $10,000 =  $145,466.83

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d.
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Answers

Answer: Global Company

Explanation:

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None of these answers are correct. However, I will assume you accidentally wrote "global economy" instead of "global company" because global company is actually the answer.

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The court did not uphold the injunction because the property on which Mcpherson wants to build the Gas station that belongs to Mcpherson has the right to build a gas station on that so Mcpherson challenged this decision any upper court.

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Thus, in this case, Mcpherson can challenge the lower court's decision in the upper court that prevents him from making a gas station on land that belongs to him.

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On January 1, 2016, Flathound Properties received $22,800 from a tenant as rent for all of 2016. What journal entry would Flathound Properties make at the end of January 2016 to show that one month of service had been provided?

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In order to show that one month of service has been provided, Flathound Properties should both Debit Deferred Revenue and Credit Revenue for $1,900.

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The $22,800 is for the whole year so we need to find the monthly rent:

= 22,800 / 12

= $1,900

This amount will be credited to Revenue to show that Flathound Properties has earned it for rental services provided. It will also be debited to Deferred Revenue.

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Describe a specific example of how social networking sites can communicate a positive image of a person to a potential employer.​

Answers

Answer:

1. Visibility

2. Networking

3. Opportunity

Explanation:

1. Visibility

People searching for jobs can market themselves online by creating online profiles that highlight any skills or special talents and making themselves easily searchable to recruiters and companies.  

2. Networking

By making themselves visible online, people have the opportunity to network with others in their field on a global level opening up endless possibilities for themselves.

3. Opportunity

Using social media creatively can give a person an opportunity in a new field that may not be reflected in their resume. (Ex: a person would like to be a product designer but spent their career as an accountant can show off their skills in their professional profile).

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The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

What are financial constrain?

This is known to be when a person or firm lacks money to run their basic activities.

Note that Fiverr has eliminate the stress of looking for a job and as such, The pain point of operations as a Freelancer that Fiverr helps alleviate is financial constraint and looking or lack of job.

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Goodwin Technologies, a relatively young company, has been wildly successful but has yet to pay a dividend. An analyst forecasts that Goodwin is likely to pay its first dividend three years from now. She expects Goodwin to pay a $2.50000 dividend at that time (D₃ = $2.50000) and believes that the dividend will grow by 13.00000% for the following two years (D₄ and D₅). However, after the fifth year, she expects Goodwin’s dividend to grow at a constant rate of 3.66000% per year. Goodwin’s required return is 12.20000%. Fill in the following chart to determine Goodwin’s horizon value at the horizon date (when constant growth begins) and the current intrinsic value. To increase the accuracy of your calculations, do not round your intermediate calculations, but round all final answers to two decimal places.

Answers

Goodwin’s horizon value at the horizon date when the constant growth begins equals $38.7481 and the current intrinsic value equals $27.1393.

What is a horizon value?

This refer to the value of an asset beyond the forecasted period when future cash flows can be estimated

What is a current intrinsic value?

This refers to the current perceived or true value of an asset.

Therefore, the horizon value at the horizon date when the constant growth begins equals $38.7481 and the current intrinsic value equals $27.1393.

Note: The calculations leading to the final answer of horizon value and current intrinsic value is explained in the attached image.

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What is a metric when it comes to data analysis? Please provide a definition.

Answers

Answer:

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Explanation:

Guji company had the following amounts of assets and liabilities at the beginning and end of last year:
Assets Liabilities
Beginning of the year………………Br.75,000 Br. 30,000
End of the year….……………………120,000 46,000
Determine the net income or net loss of Guji for the year under each of the following unrelated assumptions:
Owner made no additional investment and withdrew no amount during the year
Owner made no additional investment but withdrew Br.17,500 to pay for her personal expenses
Owner withdrew no amount during the year but made additional investment of Br. 32,500 cash.
Owner withdrew Br.17,500 and invested Br.25,000 cash during the year.​

Answers

$32300 is the net income of Guji for the year under each of the following unrelated assumptions.

Explanation:

Total assets=Total liabilities +Total equity

Beginning equity=(231,000-96500)=$134500

Ending equity=(262,000-78400)=$183600

Ending equity=Beginning equity+Issue of common stock+Net income-Dividends

183600=134500+23500+Net income-6700

Net income=(183600+6700-134500-23500)

=$32300.

Thus, $32300 is the net income.

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What was the opening price of Dow Jones Industrial Average on May 16, 2017 in the format of XXXXX.XX?

Answers

The Opening price of the Dow Jones Industrial Average on May 16, 2017, in the format of XXXXX.XX was 20,984.48.

The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States.

So, Dow Jones was 20,984.48 on May 16, 2017.

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The definition of entrepreneurship holds the promise of...

Answers

Answer:

Growth, unlimited expansion and long-term financial gain.

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Answers

In order for Jamba Juice to compete effectively, it should consider: The expansion of the chain's culinary offerings throughout all mealtimes—breakfast, brunch, lunch, and dinner—by:

refranchising current outletsstarting international expansionestablishing a retail presence with branded CPGs, andlicensing.

What is competition?

Competition is the business practice of playing in the same market with another company that offers similar services while contesting for the same market share.

The above recommendation is known as a competitive strategy. See the attached for the full case study of Jamba Juice.

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