A firm currently has 200 factories. • The depreciation rate is 8% • The real rate of interest offered by banks is 6% How many factories should the firm invest in to maintain its capital stock?
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Please need answer the financial accounting question
![A firm currently has 200 factories.
•
The depreciation rate is 8%
•
The real rate of interest offered by banks is 6%
How many factories should the firm invest in to maintain its capital
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- Need answer pleaseH1.Answer the following lettered questions on the basis of the information in this table: Amount of R&D, $ Millions Expected Rate of Return on R&D, % $ 10 16 20 14 30 12 40 10 50 8 60 6 Instructions: Enter your answer as a whole number. a. If the interest-rate cost of funds is 8 percent, what is this firm's optimal amount of R&D spending? million %24
- Leyton Lumber Company has sales of $12 million per year, all oncredit terms calling for payment within 30 days, and its accounts receivable are $1.5 million.What is Leyton’s DSO, what would it be if all customers paid on time, and how much capitalwould be released if Leyton could take action that led to on-time payments?Leyton Lumber Company has sales of $11 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.43 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Round your answer to two decimal places. days What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. days How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent.$2
- A business is planning to purchase a piece of equipment that will produce a continuous stream of income for 8 years with rate of flow f(t) = 9,000. If the continuous income stream earns 6.9%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream? (This deposit is called the present value of the continuous income stream.) What is the future value of the investment? (Round to the nearest dollar as needed.)1. DPCL is a small-sized firm manufacturing hand tools. Its manufacturing plant is situated in Sohar. The company’s sales in the year ending December 2014 were OMR 1000 million on an asset base of OMR 650 million. The net profit of the company is OMR76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 10%. The company is currently considering two investment proposals. One is to expand its production capacity. The estimated cost of the new equipment is OMR 250 million and has a life of 10 years. Forecasts of cash inflows would be OMR45 million per annum for the first 3 years, OMR 68 million from 4 to 8 years and OMR 30 million for the last 2 years. The plant can be sold for 55 million at the end of its economic life. The second proposal is to replace one of the old machines in Sohar to reduce the cost of operations. The new machine will cost OMR 50 million. The life of the machine is 10 years without any…A factory costs $810,000. You reckon that it will produce an inflow after operating costs of $171,000 a year for 11 years. a. If the opportunity cost of capital is 7%, what is the net present value of the factory?
- If a firm's sales are $1,680,000 and it costs 9 percent to carry current assets, what is the potential savings if management can increase inventory turnover from 2 to 4 times a year and increase receivables turnover from 5.0 to 6.5 times a year? Round your answer to the nearest dollar. $Assume that a company plans to introduce a new product to the market at a target selling price of $20 per unit. It is investing $4,000,000 to purchase the equipment needed to produce and sell 250,000 units per year. Assuming the company’s required rate of return on all investments is 16.50%, what is the new product’s target cost per unit? Multiple Choice $21.84 $22.84 $18.36 $17.36he. Subject :- Accounting
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