Answer:
Net Present Value = $660.98
Explanation:
<em>The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
<em>PV of cash inflow = A× (1- (1+r)^(-n))/r
</em>
A- annul cash inflow, r- 8%, n- 3
PV of cash inflow= 41,000× (1- 1.08^(-3))/0.08
= 105,660.98
Initial cost = 105,000
NPV = 105,660.98 - 105,000
= $ 660.98
Answer:
To know what things they should buy and how much they should pay
Explanation:
Answer:
C. When inventory is delivered to a customer
Explanation:
As we know that the inventory is good that the company sold to the customers. Through these goods, the company can able to generate huge profits and gain a competitive advantage in the market
But when we talk about the inventory cost that converted into an expense is when we delivered the product to the customer. It would be represented in the company books as an expense. Until sold, it cannot be converted
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