Crossrail 1 project is about to start in London.
This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year and it will continue to year 60 which is useful life of the project.
The NPV for the project will be 7.36 which is positive. The correct answer is c.
The payback period for project is 13.04 years which is given in the option a so correct answer is a.
The internal rate of return for the project is b. 7.35 .
Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.
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Answer:
The revenue that the investment in the company would increase by $100,000.
Explanation:
Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:
- Cost
- Net Realizable Value (Fair Value less Cost to Sell)
This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.
The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.
Answer: The consumption schedule shows the amounts households intend to consume at various possible levels of aggregate income.
Explanation: Consumption function, in economics, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, wealth, expectations about the level and riskiness of future income or wealth, interest rates, age, education, and family size.
A consumption schedule is a table of numbers showing the relation between consumption expenditures and income for the household sector. The income measure commonly used is national income or disposable income. Occasionally a measure of aggregate production, such as gross domestic product, is used instead.
Answer:
budgeted costs for direct materials
budgeted direct manufacturing labor
budgeted manufacturing overhead
Explanation:
Direct materials costs are $4.00 per pool cue.
Direct manufacturing labor is $6.00 per pool cue.
Manufacturing overhead is $0.84 per pool cue.
total budgeted direct materials = 22,000 x $4 = $88,000
total budgeted direct labor = 22,000 x $6 = $132,000
total budgeted manufacturing overhead = 22,000 x $0.84 = $18,480
The information about the beginning and ending inventories is not relevant to this question since it only deals with budgeted or estimated costs which may or may not differ from actual costs.
Answer:
Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.
Explanation:
The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost. This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for. This will enable comparison with another hotel that does not use Expedia for its collection, for example.