Answer:
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Explanation:
<em>To determine which project to be selected, we will compute the present value (PV) of the two projects and select the one with a higher PV.</em>
Present value is the today worth of the future cash inflows from a project. The higher the present value the more wealth is been created. So a project with a higher PV is better if two are been compared.
So when comparing two projects, the one with a higher PV is better.
<em>PV of Poject 1 </em>
PV = 52,000 × 1-(1.015)^(-6)
$196,793.10
<em>PV of Project 2</em>
PV = 48,000 × 1- (1.015)^(-8)
$215,391.43
So project two is better because it will increase the wealth of Chandler Tire by $ 18,598.33 more than Project 1
Competition has an impact on prices of items being sold such that when competition is high, prices can get lower. This is because you want to keep up with other players and present your items as the affordable kind. when competitiion is low, prices are higher because your demand is high
Answer:
Change in Investment (Government Spending) = $200
Explanation:
Multiplier = k =∆Y/∆I = 1/(1-MPC)
Needed ∆Y = $1000 ; MPC = 0.8
1000/ ∆I = 1 / (1-0.8)
1000/∆I = 1 / 0.2
1000/∆I = 5
∆I = 1000/5
∆I = 200
Answer:
Journal entry to eliminate Sale to Peter Company
Debit : Sales Revenue (Sally Company ) $50,000
Credit : Cost of Sales (Peter Company) $50,000
Explanation:
Peter Company and Sally Company are in a group and Peter Company is the Parent whilst Sally Company is the subsidiary.
For 2019 Eliminate an Intragroup Transactions that occur between Peter Company and Sally Company.
Answer:
Problem statement
Explanation:
Problem statement - it is referred to as the statement that given the clear and crystal information about the current situations. it is considered a good source of analyzing the real situations about the ongoing project.
This statement describes the current situations between the current and desired aim of the projects. it expressed the problem in two or three statements.
