Answer:
$55,000
Explanation:
The operating income of any entity can be calculated using the following formula:
Operating income=Net income+ income tax expense+ finance cost- other revenues
Net income in this question=$42,000
Income taxes=$18,000
finance cost=0
Other revenues=$5000
Operating income=$42,000+$18,000+0-$5000=$55,000
The operating income of any entity can also be calculated using the following formula:
Operating income=Revenues-operating costs
=$100,000-$45,000=$55,000
Sensitivity analysis. Where one variable is being tweaked a little to see the NPV, that is always sensitivity analysis.
The technology associated with the manufacturing computers has advanced tremendously. This change has led to the price of a computer <u>falling</u> and the quantity <u>increasing</u>.
Lower prices most likely results in a higher demand for the product in question, which will increase the production rate of that product.
Answer:
$12,146
Explanation:
The computation of present value of this opportunity cost is shown below:-
Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage
= $1,000 × 30%
= $300
Project is for 4 Years
Total months = 4 × 12
= 48 Months
Interest Rate Per month = 9% ÷ 12
= 0.75%
As per the question the Rent is Received at the start of the month
So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))
= $300 × ( 1 + 39.486)
= $12,145.85
= $12,146
Answer:
potential risk/threat
Explanation:
the concept of risk management is based on mitigating risk or avoid potential threat and plans of minimizing the impact should they occur.
