Answer:
e. Projects with "normal" cash flows can have only one real IRR
Explanation:
Normal cash flow refers to normal expected cash flow from the project, it might be negative, or positive. But generally there is a pattern in such cash flows. Initially they might be negative, but as the project starts getting mature there is positive cash flow.
This is normal circumstance. Under this there is only one real IRR. IRR is represented as the rate of return where present value of inflows = present value of outflows.
Thus, statement is true and correct.
Answer:
$0
Explanation:
Given that
Advertising expenses = $100,000
Employee training = $80,000
Customer outreach and consultation = $50,000
Since it is mentioned that this cost would be increased the fair value of the entire company by $325,000
So there is no information related to the takeover of the business so in this case, the goodwill recognized by the company is zero
Answer:
The answer is A
Explanation: I have just taken this test and A was the right answer I took a good guess but that is what it is
Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
