## Answers

Following is the working of profitability of Investment in polyzone productions.

Period | Workings | Book Income | Book Rate of return % | Econimic Income ($ in millions) | |

Mlns of Pound per Year | |||||

Investments | 120.00 | ||||

Year 1 | Net Revenue | 0.00 | |||

Less: Production Cost | 0.00 | ||||

Less: Depriciation | 12.00 | (Assuming All investment is in Depreciable Assets) | |||

Less: Transport | 0.00 | ||||

Less: Other Costs | 22.00 | ||||

Total Cost | 34.00 | ||||

Net Income | -34.00 | -34.00 | -28.3% | ||

Less: | |||||

Cost of Capital 12% of 120 | 14.40 | ||||

Economic Income | -48.40 | -48.40 | |||

Year 2 | Investments | 120.00 | |||

Net Revenue | 40.74 | ||||

Less: Production Cost | 32.00 | ||||

Less: Depriciation | 12.00 | (Assuming All investment is in Depreciable Assets) | |||

Less: Transport | 0.00 | ||||

Less: Other Costs | 22.00 | ||||

Total Cost | 66.00 | ||||

Net Income | -25.26 | -25.26 | -21.1% | ||

Less: | |||||

Cost of Capital 12% of 120 | 14.40 | ||||

Economic Income | -39.66 | -39.66 | |||

Year 3 - 10 | Investments | 120.00 | |||

Net Revenue | 79.54 | ||||

Less: Production Cost | 32.00 | ||||

Less: Depriciation | 12.00 | (Assuming All investment is in Depreciable Assets) | |||

Less: Transport | 0.00 | ||||

Less: Other Costs | 22.00 | ||||

Total Cost | 66.00 | ||||

Net Income | 13.54 | 13.54 | 11.3% | ||

Less: | |||||

Cost of Capital 12% of 120 | 14.40 | ||||

Economic Income | -0.86 | -0.86 |

#### Similar Solved Questions

1 answer

##### A) A solution of Na2CO3 is added dropwise to a solution that contains 1.23×10−2 M Fe2+...

A) A solution of Na2CO3 is added dropwise to a solution that contains 1.23×10−2 M Fe2+ and 1.59×10−2 M Cd2+. What concentration of CO32− is need to initiate precipitation? Neglect any volume changes during the addition. Answer is = [CO32−] = 1.13×10&minu...

1 answer

##### Help determining capitance and uncertainty ASAP С, (10° F) | Cm (10° F) 2.8 2.58 СА...

Help determining capitance and uncertainty ASAP С, (10° F) | Cm (10° F) 2.8 2.58 СА Св 4.4 4.83 Tabulate the data from V-3 including the following: For each unknown capacitor, tabulate Cz and Cm Determine and report COcy for both capacitors. Compare the capa...

1 answer

##### The impulse response of a discrete-time (DT) LTI system is given as a. State whether or...

The impulse response of a discrete-time (DT) LTI system is given as a. State whether or not the system is (i) memoryless, (ii) causal, (ii) stable. Justify your answers mathematically. b. Find an impulse response ho[n] such that the system with impulse response hln] + holn] (the parallel connection)...

1 answer

##### 5.26 A nozzle is attached to a vertical pipe and discharges water into the atmosphere as...

5.26 A nozzle is attached to a vertical pipe and discharges water into the atmosphere as shown in Fig. P5.26. When the discharge is 0.1 m/s, the gage pressure at the flange is 40 kPa. Determine the vertical component of the anchoring force required to hold the nozzle in place. The nozzle has a weigh...

1 answer

##### Phys 2425 help

In the figure below, a butterfly net is in a uniform electric field of magnitude E = 2.5 mN/C. The rim, a circle of radius a = 11 cm, is aligned perpendicular to thefield. The net contains no net charge. Find the electric flux through the netting._______N·m2/C...

1 answer

##### Ew History Bookmarks Window Help 53% Sun 8-25 newconnect.mheducation.com Quiz 4-Ch 5 On September 30, 2018,...

ew History Bookmarks Window Help 53% Sun 8-25 newconnect.mheducation.com Quiz 4-Ch 5 On September 30, 2018, The San Flligo Corporation Chegp.com iz 4- Ch 5 G Seved Help Save& Exit Submit Check my work 3 Brief Exercise 5-9 (Algo) Present value; annuity due; installment notes (LO5-8, 5-10] Canliss...

1 answer

##### For the regression line y = -3.24x + 7.51 which of the following are true? There...

For the regression line y = -3.24x + 7.51 which of the following are true? There may be more than one answer. a. The regression line is rising from left to right. b. The y-intercept of the line is negative. c. The dots on the scatterplot are probably rising from left to right. d. ...

1 answer

##### If a purple flower with the genotype #Pp # (P = purple ; p = white) self-pollinates, what is the ratio of purple offspring to white offspring?

If a purple flower with the genotype #Pp # (P = purple ; p = white) self-pollinates, what is the ratio of purple offspring to white offspring?...

1 answer

##### Let P = f(t) = 850(1.057)* be the population of a community in year t. (a)...

Let P = f(t) = 850(1.057)* be the population of a community in year t. (a) Evaluate f(0) = (b) Evaluate f(10) = (retain at least 3 decimal places) (c) Which of these statements correctly explains the practical meaning of the value you found for f(10) in part (b)? (select all that apply if more than ...

1 answer

##### When a Fr-223 atom with 87 protons undergoes TWO successive alpha decays, what is the daughter...

When a Fr-223 atom with 87 protons undergoes TWO successive alpha decays, what is the daughter nucleus after the second decay? Rn-222 with 86 protons Po-219 with 84 protons Th-227 with 92 protons Po-215 with 84 protons BI-215 with 83 protons...

1 answer

##### 25. [1pt] The five diagrams show portions of systems of pipes (with circular cross sections) where...

25. [1pt] The five diagrams show portions of systems of pipes (with circular cross sections) where a non-viscous incompressible fluid enters at the left and leaves from the right. The diameters of some of the pipes are indicated. The views are either top views of pipe systems in the horizontal plane...

1 answer

##### Analyze and sketch a graph of the function. Find any intercepts, relative extrema, points of inflection,...

Analyze and sketch a graph of the function. Find any intercepts, relative extrema, points of inflection, and asymptotes. (If an answer y = x + 1 intercept (x, y) = -1.0 relative minimum (x, y) = ( I relative maximum (x, y) = points of inflection (x, y) = (smallest x-value) (x, y) = (x, y) = (largest...

1 answer

##### Sue can swim 460 meters in 20 minutes

sue can swim 460 meters in 20 minutes. If she doubles her speed,how many meters will she swim in 7 minutes?...

1 answer

##### PART VI LIABILITY EROULEMS (15 points) Chapter 9 and Chapter 10 Instructions: Complete the requirements specified...

PART VI LIABILITY EROULEMS (15 points) Chapter 9 and Chapter 10 Instructions: Complete the requirements specified for each o situations On January 1, carry a stated interest of 6% payable each January 1, Prepare issuance of the bonds if the bonds are issued at 98.5 2014, Wicker World issued bonds wi...

1 answer

##### Problem 2. (a) Sketch the curves expressed here in polar coordinates r1=1+sin(0); r2 = 2 –...

Problem 2. (a) Sketch the curves expressed here in polar coordinates r1=1+sin(0); r2 = 2 – sin(6). (b) Find the area of the plane region that lies inside both curves: r1=1+sin() and r2 = 2 - sin(0)...