If goods are sold on terms fob shipping point, the _______

Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The

wlad13 [49]

Answer:

a) Net Present Value = $ 304,495.12

b) Beyer should accept the investment.

Explanation:

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

Year PV

1 77,000 × 1.12^(-1) = 68,750.00

2 54,000 × 1.12^(-2) = 43,048.47

3 82,000 × 1.12^(-3) = 58,365.98

4 172,000 × 1.12^(-4) = 109,309.11

5 423,000 × 1.12^(-5)= 240,021.56

Total Present Value 519,495.12

Initial cost (215,000)

Net Present Value 304,495.12

Net Present Value = $ 304,495.12

b) Decision :

Beyer should accept the investment. This will increase the wealth of the shareholders by $ 304,495.12

8 0

3 years ago

A computer company's yearly inventory cost is 40 percent (which accounts for the cost of capital for financing the inventory, wa

aksik [14]

Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.

Explanation:

In the given example,

inventory cost 40 percent

Inventory Value $400 million

Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value .

so in the current case it will be 40% x/$400 million

Hence, Inventory Cost 160 Million

Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.

Company should focus on offering on discounts and promotions and reduce Obsolete Stock.

It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.

The procurement team should order in minimum quantities and benchmark reorder point.

3 0

2 years ago

Alyssa was complaining about her workload before the staff meeting began. Later, when the manager announced that twelve parking

Novosadov [1.4K]

Answer: a. Set ground rules to be followed. b. Ignore conflict so that it will blow over. c. Start meetings promptly. d. Introduce a tentative agenda.

Explanation: All the answers given are correct, but Alyssa should be cautioned around her conduct during the staff meeting.

8 0

2 years ago

Trey sells consumer electronics. He knows his customers weigh the costs versus the benefits associated with the different option

BartSMP [9]

Answer:

D, value-based marketing

Explanation:

Value-based marketing -

The process of selling goods or services , when marketing is done to the customer's ethics and value , in order to orient the customer to buy a specific goods or services .

It shifts the marketing towards customer-centric from product-centric .

Hence , from the question , Trey is selling products by Value-based marketing .

5 0

3 years ago

A company assigns overhead using a plantwide rate. If total estimated manufacturing overhead is $900,000 and the total estimated

ozzi

Answer:

Overhead application rate

= Budgeted overhead

Budgeted machine hours

= $900,000

30,000 hours

= $30 per machine hour

Overhead cost assigned to the product

= Overhead application rate x Actual machine hours

= $30 x 12,000 hours

= $360,000

Explanation:

In this case, there is need to determine the overhead application rate, which is the ratio of budgeted overhead to budgeted machine hours.

Then, we will obtain the overhead cost assigned to the product by multiplying the overhead application rate by actual machine hours.

3 0

2 years ago

If goods are sold on terms fob shipping point, the ________.