Answer:
The Ariana's accounting profit for the year was $6,000
Explanation:
Accounting Profit : The accounting profit is that profit which records the difference of total revenues and total direct cost.
Where,
Total revenues includes sales revenues
And total cost includes monetary cost, etc.
So,
Accounting profit = Total revenues - Total cost
where
Total revenues = 2,000 × $2.5 + 4,000 ×$2.5 = $15,000
Monetary cost = $9,000
So,
Accounting profit = $15000 - $9000 = $6,000
Hence, the Ariana's accounting profit for the year was $6,000
Answer:
Net present value = $2063.1922
Explanation:
given data
initially costs = $40,500
cash flows = $34,500
final cash inflow = $12,000
required rate of return = 18.5 percent
solution
The cash flows is
Year 0 = $40500
Year 1 = $0
Year 2 = $0
Year 3 = $34500
Year 4 = $34500
Year 5 = $0
Year 6 = $12000
so Net present value will be express as
Net present value = -Initial cash outflow + Present value of future cash flows ...............1
Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t ..........................2
put here value we get
Present value =
Present value = $42563.1922
Net present value= -$40500 + $42563.1922
Net present value = $2063.1922
PW = FW×(1+i)^-n
PW = $19340×1.15^-1 + $2280×1.15^-2 + $26600×1.15^-3 + $24240×1.15^-4 + $8770×1.15^-5 = $54250.90
hence PW = $54250.90