Answer: $603,500
Explanation:
Ending inventory in 2014;
= Ending inventory balance 2013 + ((
* 100) - ending inventory 2013)) * Price index 2014/100
= 550,000 + ((
) - 550,000)) * 107/100
= $603,500
Answer:
having lower overhead costs.
Explanation:
Robert started his company in his mother's garage so he did not have to pay rent or lease at the initial stage of his business. This gave him the opportunity to put his finances in essential aspects of his business.
Therefore he had an opportunity to reduce his overhead cost.
Answer:
Bottom-up.
Explanation:
Bottom-up budgeting is a budgeting method that starts at the department level to the top level. Each department within the organization is required to compile a list of the things it needs, the projects it plans to carry out in the next financial period, and the cost estimates.
-A contract is legally binding.
Answer:
Terminal value
= 500(1+0.12)3 + 500(1+0.12)2 + 500(1+0.12)1+ 500(1+0.12)0
= 500(1.12)3 + 500(1.12)2 + 500(1.12)1 + 500(1.12)0
= 702.464 + 627.2 + 560 + 500
= $2,389.66
The correct answer is E
Explanation:
Terminal value is a function of number of years cashflow for each year can be re-invested at the appropriate discount rate. The cashflow for year 1 can be re-invested for 3 years since the life of the project is 4 years. cashflow for year 2 can be re-invested for 2 years, cashflow for year 3 can be re-invested for 1 year and cashflow for year 4 can be re-invested for 0 year.
