Answer:
$1,285,000
Explanation:
Initial cash flow is the amount of money paid out or received at the start of a project or investment.
The initial cash flow for the project is calculated as = $425,000 + $15,000 + $60,000 + $5,000 + $780,000 = $1,285,000.
Answer:
<em>Control</em>
Explanation:
The control cycle <em>is the incremental process in which tests are prepared, tracked, reviewed, and updated. </em>
The control cycle is widely used to continually monitor organizational expenditures and system flows.
The assumption when applying the control cycle to budgeting is that each subsequent iteration of the budget will be changed based on the information obtained when comparing the initial budget with actual results.
Answer:
Option E All the statements are correct.
Explanation:
The reason is that the company which practices perfect price discrimination is the one which is charging different to different customers. So the prcie that the firm charges the price that the customer is willing to pay. This is very common in markets the seller present a number of products and quotes a higher price and then have a healthy conversation with you and then agrees the price. Some people agree at the spot and some agree by heavy debate and forces the seller to reduce the cost otherwise the customer is going away. So this means the company is charging reservation price, takes all the consumer surplus from consumer and captures the social gain which is the maximum gain possible to extract from the person.
Due to charging different prices to different customers the production is almost average and this constitutes to the quantity that it would had produced if it was operating in the competitive market.
So all the answer are correct here.
Answer:
Projects E,F and G should NOT be considered.
Optimal Capital is $5,750,000
Explanation:
The accept-or-reject rule, using the IRR method, is to acceptthe project if its Internal Rate of Return (IRR) is higher than theWeighted Average Cost of Capital(k) [r>k]. The project shall berejected if its internal rate of return is e lower than theWeighted Average Cost of Capital cost of (r<k)
Accept if r>k
Reject if r<k
Mayaccept if r = k
If the Weighted Average Cost of Capitl (WACC) is less than IRRrate, then the project has positive NPV; if it is equal to IRR, theproject has a Zero NPV, and if it is greater than the IRR, theproject has negative NPV.
The projects should be accepted as the rate of return on theproject is higher than the WACC(10.8%) which means that theprojects will be profitable as the returns are higher than the costof the project (capital). Considering this projects E,F and G should NOT be considered.
And considering the sizes the Optimal Capital is $5,750,000 (the addition of sizes of all projects)
