Answer:
correct option is B. Net present value
Explanation:
solution
here time value of money in the evaluating of alternative capital expenditure is NPV ( Net present value )
and we know that NPV ( Net present value ) is calculated as the difference in between the cash inflow and the present value of the cash outflow ............1
so we can say correction option is B. Net present value
Answer:
Price elasticity of demand = Change in Quantity/ Change in Price
Using midpoint formula;
Change in Quantity ;

Change in Price;

Price elasticity of demand = -0.342/0.118
= -2.90
Demand is elastic, so decreasing ticket prices will increase revenue.
When the elasticity is larger than 1 it means that a 1% change in price will change demand by more than 1%. In this case, a a decrease of price by 1% will bring 2.9% increase in customers.
Answer:
a. $66,889.63
b. $107,726.42
Explanation:
We use the Present value function that is to be reflected on the attachment
a. In the first case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $66,889.63
b. In the second case
Data provided in the question
Future value = $450,000
Rate of interest = 10%
NPER = 20 years
PMT = $0
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $107,726.42
Answer:
the monthly payment is $994.38
Explanation:
For computing the deposit amount made in equal payment for the next five years we need to apply the PMT formula i.e. to be shown in the attachment below:
Given that,
Present value = $0
Future value or Face value = $75,000
RATE = 9% ÷ 12 = 0.75%
NPER = 5 years × 12 = 60 years
The formula is shown below:
= PMT(RATE;NPER;PV;-FV;type)
The future value come in negative
So, after applying the above formula, the monthly payment is $994.38
Answer:
4,684 jars
Explanation:
The computation of the minimum number of jars is shown below:
Minimum number of jars = Fixed cost ÷ Contribution margin per unit
where,
Fixed cost is $8,900
And,
Contribution margin per unit is
Sales revenue per jar $5.30
Less: Sales revenue lost per jar ($3.20 × 1 ÷ 4) $0.8
Net sales revenue per jar $4.50
Les: Variable processing cost per jar $2.10
Less: Variable selling cost per jar $0.50
Contribution margin per jar $1.90
Based on this, the minimum number of jars is
= $8,900 ÷ $1.90
= 4,684 jars