Conversion cost equals product cost less direct materials cost.
Indicate whether the statement is true or false
Answer: True
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Which one of the following items would be subtracted from the balance per books in a bank reconciliation
a. Outstanding checks b. Deposit in transit c. Service charges d. Interest on customer note
Punitive damages are not always awarded as a deterrent in breach of contract cases
a. True b. False Indicate whether the statement is true or false
The S&P 500 Bear Plus ETF seeks daily investment results such that its Beta is equal -2. The risk free rate is 3.5% and the market risk premium is 6%. What is the equilibrium expected rate of return on the ETF?
A) -19% B) -8.5% C) -2.5% D) 0% E) 3.5%
What is the NPV of the Airbus A380 project? The Airbus A380 is the largest civilian aircraft ever built. It can carry 555 passengers on two decks. Initial project investments were $13B. Assume that the initial investment was paid on Dec 31, 2008
Assume that Airbus will produce 60 aircraft per year for five years. Each aircraft will be sold for $230M and total operating costs are 75% of revenues. Assume that revenues and costs occur at year-end with the first revenues (and costs) occurring on Dec 31, 2009. What is the NPV of the project if Airbus' cost of capital is 11%? Calculate the NPV as of Dec 31, 2008. Ignore taxes and assume that there are no terminal year cash flows. A) -$2.799B B) -$0.249B C) $0.078B D) $2.751B E) $25.253B