CAPITAL BUDGETING PROBLEMS: CHAPTER 11 Answers to Warm-Up Exercises E11-1. Categorizing a firm’s expenditures Answer: In this case‚ the tuition reimbursement should be categorized as a capital expenditure since the outlay of funds is expected to produce benefits over a period of time greater than 1 year. E11-2. Classification of project costs and cash flows Answer: $3.5 billion already spent—sunk cost (irrelevant) $350 million incremental cash outflow—relevant cash flow $15 million per year cash
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Home work- Chapter 7: 1. Fertility factors are a. Plasmids that contains genes for antibiotic resistance b. Plasmids that contains genes for pathogenicity c. Plasmids that contains genes for F factor d. All of the above 2. Promoter is a site where‚ a. DNA polymerase binds b. Repressor binds c. RNA polymerase binds d. Inducer binds 3. _______________ enzyme forms RNA based on the information carried on DNA strand. a. DNA polymerase b. RNA polymerase c. DNA helicase d. A & C 4. Operator
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LO2 | 5. | | Executive Lawn provides $100 of landscape maintenance to Peterson Law on April 10. Consider three scenarios: a. | | Peterson pays for the lawn service in advance on March 28. | b. | | Peterson pays for the lawn service on April 10‚ the day of service. | c. | | Peterson pays for the lawn service the following month on May 2. | If Executive Lawn uses accrual-basis accounting‚ on which date would Executive Lawn record the $100 revenue for each scenario?April 10 | | LO2
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Chapter 9 reducing project duration Review Questions 1. What are five common reasons for crashing a project? Reasons given could include: • Imposed deadline in which disfavor will be earned by not meeting superior’s deadline • Time to market competitive advantage • Realize benefits from incentive contracts • To make up for lost time and avoid contract penalties • Save extensive overhead costs • Free up resources to work on other projects • Exceed
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MenuItem 10: (Topic 10) Medium- to long-term debt Question 1: Manufacturer Limited is seeking a five-year term loan from its bank. The bank manager has indicated that a loan can be provided and will be priced at the bank’s base rate‚ plus a margin. Which of the following is not a determinant of the margin to be paid by the company? A: the debt to equity ratio of the borrower B: the borrower’s past loan-repayment performance C*: the term structure of interest rates D: the assets available to
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Chapter 6 MULTIPLE CHOICE Name: Jared Senseman 1. C If you need to convey information that contains good- or neutral-news‚ you should a. use letters but not e-mail or voice mail. b. use e-mail but not letters or voice mail. c. use e-mail and letters but not voice mail. d. use e-mail‚ memos‚ or voice mail. 2. A Business messages should be organized based on a. a prediction of the receiver’s reaction to the main idea. b. the
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Questions Chapter 1 1. How does managerial accounting differ from financial accounting? The essential difference between managerial accounting and financial accounting is that managerial accounting attends the needs of managers inside the organization‚ while financial accounting serves the needs of those outside the organization. There are also specific guidelines that are used (GAAP/IFRS) in financial accounting and is mandatory whereas there are no guidelines in managerial accounting and is
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Jazzlynn Ben Chapter 5 Problems Dr. Ennis 5.1. You were asked to investigate extremely high‚ unexplained merchandise shortages at a department store chain. You found the following: a. The receiving department supervisor owns and operates a boutique carrying many of the same labels as the chain store. The general manager is unaware of the ownership interest. -- It is a red flag warning so it is a fraud because there is a conflict of interest situation which should have alerted the auditor
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Christina Park 2/14/12 pd.3 Chapter 11 Notes I. Measuring Matter A. Counting Particles number of unit for counting is always constant. a. What is a mole? mole (mol): the SI unit used to measure the amount of a substance‚ number of representative particles. representative particle: any kind of particle such as atoms‚ molecules‚ formula units‚ electrons‚ or ions. Avogadro’s number: 6.022 136 7 x 10²³‚ volume of one mole of a gas determined by Amedeo Avagadro in 1811. B. Converting
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Chapter 11 Homework Page 1 of 2 [The following information applies to the questions displayed below.] Tyrell Co. entered into the following transactions involving short-term liabilities in 2012 and 2013. 2012 Apr. 20 Purchased $36‚500 of merchandise on credit from Locust‚ terms are 1/10‚ n/30. Tyrell uses the perpetual inventory system. May 19 Replaced the April 20 account payable to Locust with a 90-day‚ $35‚000 note bearing 7% annual interest along with paying $1‚500 in cash. July 8 Borrowed
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