Answer:
c. NPV will decrease by $1,621.23.
Explanation:
Missing word <em>"Hint: what happens to cash flow when net working capital increases and decreases? a. NPV will not be affected because the $25,000 will all be recouped b. NPV will decrease by $25,000. c. NPV will decrease by $1,621.23. d. NPV will increase by $1,864.41. 19"</em>
Present Value of Net Working Capital investment in Year 5 = $25000 / (1+15%)^5
= -$25,000 / (1+15%)^5
= -$25,000 / 2.01135719
= -$12,429.418
= -$12,429.42
Present Value of Net Working Capital Recovered in Year 6 = $25000 / (1+15%)^6
= $25,000 / (1+15%)^6
= $25,000 / 2.31306077
= $10,808.1899
= $10,808.19
Effect on the project's net present value = Present Value of Net Working Capital investment in Year 5 + Present Value of Net Working Capital Recovered in Year 6
= -$12,429.42 + $10,808.19
= -$1,621.23
Therefore, NPV will decrease by $1,621.23.
Answer:
$24,160 favorable
Explanation:
The computation of the total contribution margin sales volume variance is given below:
The Budgeted contribution margin per pound of MT is
= $40 - $20
= $20 per pound
Now the budgeted contribution margin per pound of ET is
= $60 - $30
= $24 per pound
MT's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (3960 - 4000) × $20
= $800 Unfavorable
ET's contribution margin sales volume variance is
= (Actual sales quantity - Budgeted sales quantity) × Budgeted contribution margin per pound
= (5,040 - 4000) × $24
= $24,960 favorable
Now the total contribution margin sales volume is
= $800 unfavorable + $24,960 favorable
= $24,160 favorable
Since the vedic age existed circa 1750–500 BC, both <u><em>technology</em></u> would have greatly limited what could be developed for trade, and <u><em>transporation</em></u> (roads) would have been very underdeveloped between distant villages, thus, this would have been a limiting factor on the types of goods that could have been traded (i.e. mostly goods available in the local region would have been available for trade)