Answer:
A) initial outlay = $150 million
Cash flow year 1 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28
Cash flow year 4 = [($30 - $25) x 0.6] + $25 + ($25 x 60%) + $50 = $93
B) Using a financial calculator, NPV = -$16.85 million
C) cash flow year 4 should increase by $24.667 million, meaning that the selling price must increase by $$24.667/0.6 = $41.11 million
minimum selling price $25 + $41.11 = $66.11 million
Answer:
True
Explanation:
statement of cash flows can be regarded as financial statement which gives analysis of how cash as well as cash equivalent is affected by any changes in balance sheet accounts.
The indirect method of statement of cash flows begins with loss or the net income as well as the substraction of values from non cash revenue which result in case flow as a result of operating activities.
What the managers are asking for steve to use is a <span>behaviorally anchored rating scale or most commonly called in the acronym as BARS. The numerical range of rating of this scale is between 5 to 9 which helps describe the type of performance incurred by the employee from poor to outstanding. This is used in the appraisal process of employees.</span>
Answer:
E) existing factory has enough capacity to handle demand for the new products as well as the existing products.
Explanation:
If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.
If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.
Answer:
$22,500
Explanation:
Data given in the question
Purchase value of the patent = $175,000
Legal fees = $5,000
The Remaining life of the patent = 13 years
Expected using life of the patent = 8 years
So by considering the above information, the annual amortization expense for 2019 is
= (Purchase value of the patent + Legal fees incurred) ÷ (Expected using life of the patent)
= ($175,000 + $5,000) ÷ (8 years)
= $22,500
