You are thinking about making an investment in the widget company. to decide how much your investment should be, you decide to run a net present value calculation on the 5 year (60 month) proforma. you build a proforma with the following assumptions: month 1 revenue: $100,000 expenses $95,000 net operating income (noi): $5,000 each month the revenue grows at an annualized rate of 10% and the expenses drop at an annualized rate of 3%. at the end of 5 years you determine that the widget company will have a noi of $81,214 in month 60 and you place a terminal value on the company at the end of 5 years at $1,000,000. you calculate the monthly profits for the widget company and add up each of the 60 months to get a total profit number of $2,444,468. so your investment will generate $2,444,469 in profits over 60 months and then at the end of 60 months you believe you can sell the company for $1,000,000 (the terminal value). however, there is risk in the investment as the widget market is not a sure thing and so you apply a 15% discount rate to the monthly profits and the same to the terminal value. based on this calculation, what is the most you should want to pay for the widget company?

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

Beck company had the following accounts and balances at the end of the year. what is net income or net loss for the year? cash $ 74 comma 000 accounts payable $12,000 common stock $21,000 dividends $12,000 operating expenses $ 13 comma 000 accounts receivable $ 49 comma 000 inventory $ 47 comma 000 longminusterm notes payable $33,000 revenues $ 91 comma 000 salaries payable $ 30 comma 000