Questions

Why managers use budgets

QUESTION Why managers use budgets Consider the budget for any business. Requirement 1. List the three key benefits companies get from preparing the budget. The companies get the following benefits from preparing the budget:1. Planning: Budgeting helps in planning the activities to be performed by the business and describes the course of actions to be […]

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Date: September 2nd, 2020

Use the payback method to determine whether Preston should purchase this plant.

QUESTION Using the payback and rate of return methods to make capital investment decisions Preston, Co., is considering acquiring a manufacturing plant. The purchase price is $1,100,000. The owners believe the plant will generate net cash inflows of $297,000 annually. It will have to be replaced in six years. Requirement 1. Use the payback method […]

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Date: September 2nd, 2020

Which model should Lifemaster produce? ( Hint: Use the allocation of fixed manufacturing overhead to

QUESTION Product mix under production constraints Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaster could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models is as follows: Per Unit Deluxe Regular […]

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Date: September 2nd, 2020

The primary financial objective of corporate finance is usually taken to be the maximization of

QUESTION The primary financial objective of corporate finance is usually taken to be the maximization of shareholder wealth. Discuss what other objectives may be important to a public limited company and whether such objectives are consistent with the primary objective of shareholder wealth maximisation. The object of the Corporate Finance is the acquisition and allocation […]

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Date: September 2nd, 2020