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kenny6666 [7]
1 year ago
7

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea

r project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?
Business
1 answer:
mylen [45]1 year ago
0 0

Answer:

$56,520

Explanation:

As per given data

Year     Sales          Working Capital 18%

   0      $279,000   ($50,220)

   1       $308,000   ($5,220)

   2      $314,000    ($1,080)

   3      $314,000    $0

   4      $314,000   $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

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Answer:

B. Brand B, 10 oz. bag for $3.90

Explanation:

The lowest per unit cost of different brands can be calculated using the following formula

Cost per oz=Cost per bag/number of oz in that bag

Brand A Cost per oz=3.60/8=$0.45

Brand B Cost per oz=3.90/10=$0.39

Brand C Cost per oz=6.50/16=$0.406

Brand D Cost per oz=0.59/1=$0.59

So the answer is B. Brand B, 10 oz. bag for $3.90

5 0
1 year ago
If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tic
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Answer:

The correct answer is letter "C": price unit-elastic.

Explanation:

Elasticity is the feature of goods and services by which their quantity demanded changes as long as their prices change. Elasticity is calculated by dividing the change percentage in quantity demanded by the change percentage in price. When the result is a figure equal to or greater than 1, the demand is elastic. If the figure is lower than 1, the demand is inelastic.

Thus, <em>the university is assuming the football game price ticket per unit is elastic since they believe that decreasing the tickets causes the quantity demanded will increase generating more revenue.</em>

7 0
2 years ago
A promise to pay a debt that has already been discharged in bankruptcy must be in writing in order to be enforceable in many sta
morpeh [17]

Answer:

True

Explanation:

Since in the question it is mentioned that the promise is to be done for paying off the debt i.e. already discharged at the time of bankruptcy also it should be in writing so that it become enforceable in many states

Therefore the given statement is true

Hence, the same is to be considered

So the given statement is not false

7 0
1 year ago
The importance of information.
blondinia [14]

he importance of information giving has been recognized and promoted in political,  

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2 years ago
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 64,000 Annual cost savings
Ratling [72]

Answer:

$9,201.6

Explanation:

Calculation for The net present value of the proposed investment is closest to:

Using this formula

Net Present value = (Annual cost saving * PVAF) + (Salvage value * PVIF) - Cost of investment

Let plug in the formula

PVAF (10%,5 years) = 3.7908

PVIF (10%, 5 years) = 0.6209

Net Present value = ($18,000 * 3.7908) + ($8000 * 0.6209) - $64000

Net Present value = $68,234.4+$4,967.2-$64,000

Net Present value = $9,201.6

Therefore The net present value of the proposed investment is closest to:$9,201.6

3 0
1 year ago
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