A firm is considering a project with a 6-year life and an initial cost of $33,750. The appropriate discount rate for this project is 13%. The firm expects sales to be $11,500/year for the first 3 years. Beyond year 3, there is a 40% chance that sales will fall to $6,000/year for years 4, 5, and 6 and a 60% chance that sales will rise to $12,500/year for those three years. The project also contains an abandonment option: the firm will have the option to abandon the project after 3 years (i. e., at t=3) by selling it for $20,000 (after taxes). By the time the firm faces the decision whether to continue or abandon at t=3, it will know which state will be realized in years 4 through 6 (should the project be continued).
Required:
(a) Calculate the expected net present value of this project in the absence of the abandonment option.
(b) Calculate the value (in todayâs dollar terms) of the abandonment option.

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?

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.

Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?