Answer:
net present value = 133808.82
Explanation:
solution
we find here present value of cash inflows that is
Cash inflows = $325,000
and
cash costs @63% = $204,750
so
cash flow before tax = 325,000 - 204,750 = $120,250
and Tax @21% = $25,252.5
so
Cash flow after tax will be = $120,250 - $25,252.5 = $94,997.5
Discounting factor is = 0.17
Present value of cash inflows = (cash flows after tax ÷ discounting factor)
Present value of cash inflows = 
Present value of cash inflows = $558808.82
so
net present value = Present value of cash inflow - present value of cash outflows
put here
net present value = $558808.82 - $425,000
net present value = 133808.82
Answer:
a. $225, 000
b. $900, 000
c. $140, 000
Explanation:
Ralph Mini-Mart Store in Alpine:
(a) Beginning inventory: this is the value of inventory on hand at the beginning of the financial year. This is the value is the same as the value of ending inventory at the end of the previous financial year. This value includes the value of the inventory and any costs that were incurred to bring the inventory to the organization’s store house.
For Ralph Mini- Mart, beginning inventory = $225, 000 (refer to item 5)
(b) Transfers- In: this is the inventory that was purchased during the financial year. This value will include the cost of the inventory and any other costs that were incurred to bring the inventory to the store house of Ralph’s Mini – Mart. In this instance, the additional cost is the transportation cost of $30, 000 that was incurred to transport the inventory from the supplier to the warehouse.
For Ralph’s Mini – Mart, the Transfers – In = $870, 000 + $30, 000 = $900, 000 (refer to item 3 and 4)
(c) Ending balance: the ending balance is the value of inventory at the end of the financial year. This is the value of inventory that Ralph’s remains with after purchasing inventory from suppliers and selling inventory to customers. This value will take into account any inventory write- downs and obsolescence. In this instance, there has been no inventory write- downs and no inventory obsolescence or thefts.
For Ralph’s Mini – Mart, the value of ending inventory = $140, 000 (refer to item 5)
Answer:
Stable prices
Explanation:
Stable prices created a structured economy without residents having to constantly adapt to deflation, inflation etc.
Answer:
It is called borrowed capital
