<span>Net present value is the present value of future cash inflows discounted at the expected rate of return minus the initial investment.
Initial cash outflow = $7670
Cash inflow during Year 1 = $1280
Cash inflow during Year 2 = $0
Cash inflow during Year 3 = $6980
Cash inflow during Year 4 = $2750
Discount rate = 12.5%
NPV = (1280/1.125^1)+(0)+(6980/1.125^3)+(2750/1.125^4)-7670
NPV = (1280/1.125)+0+(6980/1.424)+(2750/1.6)-7670
NPV = 1137.778+0+4902.277+1716.811-7670
NPV=86.86</span>
Answer:
FV= $22,333.56
Explanation:
Giving the following information:
Semi-annual investment= $750
Interest rate= 0.08/2= 0.04
Number of periods= 10*2= 20
<u>To calculate the future value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= semi-annual deposit
FV= {750*[(1.04^20) - 1]} / 0.04
FV= $22,333.56
Answer:
The price of the product is $59
Explanation:
Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below
Contribution margin ratio = Contribution margin per unit / Selling price per unit
23% = $13.57 / Selling price per unit
Selling price per unit = $13.57 / 23% = $59
Answer:
a. Inventory Turnover = 5.299 times or 5.30 times
b. Days in Inventory = 69 days
Explanation:
a)
To calculate the inventory turnover, we first need to find out the avergae inventory. The average inventory is calculated by adding the opening and the closing inventory and dividing the sum by 2.
- Average Inventory = (35750 + 63500) / 2 = $49625
The inventory turnover is,
- Inventory Turnover = Cost of Sales / Average Inventory
- Inventory Turnover = 263000 / 49625 = 5.299 times or 5.3 times
b)
Days in inventory is the period for which, on average, the inventory is kept and sold completely.
We can calculate days in inventory simply by dividing the number of days for which we are calculating the ratio for, say in this case one years or 365 days by the inventory turnover ratio we calculated.
Days in inventory = 365 / 5.30 = 68.8679 or 69 days
Venture opportunity screening is a business term which means the evaluation or the assessment of an entity in the business perspective in terms of its potential to generat<span>e income and grow commercially. The index of assessment also includes current and future financial performance when placed in the current context. </span>
