Answer:
The correct option is that it reveals when customer intends to pay outstanding balances
Explanation:
Such analysis of separate accounts receivable information for each customer, no doubt,shows how much credit purchases individual customers have made in order to see at a glance the amount receivable from them individually.
Also,the amount paid thus far is also shown alongside the total credit purchase amount in order to arrive at customers' outstanding balances that the company to chase in order to ensure a liquid cash position overall.
However, the analysis does not include information on when customers intend to make payment but rather includes the dates payments are expected from customers i.e due dates
The percentage of texting and driving car accidents in the united states is 1 out of 4 which means 25%
<span>It will cost $3,000 to acquire a small ice cream cart. cart sales are expected to be $1,400 a year for three years. after the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. what is the payback period of the ice cream cart?
a. .83 years
b. 1.14 years
c. 1.83 years
d. 2.14 years
e. 2.83 years
</span>
the answer is E.
Answer:
Each mentioned criteria is a must, but age would be out of it.
Answer:
(a) It will have multiple IRRs
(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).
Explanation:
(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.
Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.
In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)
(b) Please see attached for more details.