Answer:
A. Decrease
Explanation:
In investment appraisal with the method of Net Present Value, the bone of contention and the central matter is the TIME VALUE OF MONEY.
In the above scenario, the initial working capital was 100% released in proportions of 40%, 40% and 20%, throughout the 3 years of the project. However, if the reverse had been the case, i.e. parting with more cash now and the requirement of working capital now becomes: Year 0 = -10,000, Year 1 = - 10,000, Year 2 = -10,000, Year 3 = +30,000; the NPV would definitely shrink because the value of 10,000 each in Years 0-2 would not be the same when it is recovered from the project in year 3. The value will be smaller and hence the NPV of the project would have decreased as a result of the time value of money.
Answer:
A) David will make pizza because he has comparative advantage in making pizza.
Explanation:
Make Pizzas Serving make pizzas/serving pasta
25 40 0,63
20 30 0,67
Answer
i and ii
Explanation:
they provide goods (i)
because they are small it can be personalised
Answer:
$80
Explanation:
The Replenish journal entry is shown below:-
Gas expense Dr, $30
Postage expense Dr, $30
Supplies expense Dr, $10
Miscellaneous expenses Dr, $10
To, Cash $80
(Being replenish of fund is recorded)
Therefore cash credited for $80
Answer:
1. 4,000 bags
2. 1,000
3. 180 runs
4. 18,000
5. $165,600
Explanation:
1.
Q = 
= 4,000 bags
2.
Maximum Inventory = Q* (1 - D/N/P)
4,000*0.25
= 1,000
3.
Annual demand / Bags of coffee roasted per day
36,000 bags / 200 bags
= 180 runs
4.
Annual average inventory
36,000/2
=18,000
5.
Production Cost $200 * 180 runs = $36,000
Carrying Cost $3.6 * 36,000 bags = $129,600
Total Cost = $36,000 + $129,600
= $165,600
