Answer:
payback:
A 2.5 less desirable
B 2.2
C 1.75 most desirable
net present value
A -33.89 less desirable
B 2,018
C 7,003 most desirable
Explanation:
payback period: the time of the investment at which recovers the initial investment:
the procedure is as follow:
investment - cash flow per year = carrying value
you repeat this until the cash flow of the next year is equal or higher than the carrying value once that occur you will divide to know at which portion of the year you obtain the payback
A
22,000 - 7,000 - 9,000 = 6,000
6,000 / 12,000 = 0.50
2.5 years
B
22,000 - 10,000 - 10,000 = 2,000
2,000 / 10,000 = 0.2
2.2 years
C
22,000 - 13,000 = 9,000
9,000 / 12,000 = 0.75
1.75 years
net present value: we calculate the discounted value of the cahs inflow:
A
-33.89212828
B
2018.312682
C
7003.052114
The range available for negotiation is the difference between the sticker price and the INVOICE PRICE.
The sticker price refers to the amount of money that a seller attached to a product he wants to sell. The invoice price refers to the price that a company pay to its wholesaler dealer for an item, that is, it is the actual cost of a product. During negotiation, the lowest price that a seller can sell for is the invoice price.<span />
Answer:
$8,000
Explanation:
Base on the scenario been described in the question, we are to use simple interest to calculate the given problem
We are given
Time = 2years
rate = 8%
Principal = $50,000
Simple interest formula is given below
I = PRT/100
Substituting the values into the question, we have
I = $50,000×8×2/100
I = $800,000/100
I = $8,000
Answer:
Statement of cash flows
Explanation:
The cash flow statements refers to the statement in which the cash inflow and cash outflow is taken place.
The cash flow statement includes three kinds of activities which are listed below:
1. Operating activities: This covers all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and a rise in current liabilities.
It would adjust those changes in working capital. In fact, the depreciation cost is applied to the net income, and the loss on asset sales is added while the benefit on asset sales is deducted
2. Investing activities: it records activities that include buying and selling long-term assets. The acquisition is a cash outflow whereas the selling is a cash inflow
3. Financing activities: It reports activities that have an influence on long-term liability and equity balance of shareholders. Share issue is a cash inflow whereas redemption and dividend are cash outflows.
