Primary research To get a complete picture of your target market,
Answer:
The one time fee that the owner should charge is $1764.71
Explanation:
To calculate the one time fee, we take this as a perpetuity and calculate the value or price of the perpetuity based on the fututre cash flows discounted to today's price by a certain dicount rate.
The discount rate is taken as 8.5% which is also the market interests rate.
The formula for the value/price of the perpetuity is,
Value / Price = Cash flow / Discount rate
Value / Price = 150 / 0.085
Value / Price = $1764.705 rounded off to $1764.71
Answer:
The change in the dollar amount of inventory is $200 due to change in the inventory costing method.
Explanation:
The variable cost per unit is $6.00 while the fixed cost per unit is $2.00
Variable cost per unit = $6.00
Absorption cost pet units = $8.00
Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory
Total absorption cost = $8.00 × 100 = $800
Total cost under variable cost = Variable cost per unit × number of units in ending inventory
Total variable cost = $6.00 × 100 = $600
Change in cost = Total absorption cost - Total variable cost
Change in cost = $800 - $600 = $200
Answer:
IRR= 21.86%
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Cash flows (PMT)= $4,000 per year
Number or years (n)= 4
<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>
Function: CMPD
n= 4
I%= SOLVE = 21.86%
PV= 10,000
PMT= -4,000
IRR= 21.86%
Answer:
b. Liabilities are understated by $4,167 accrued interest payable
Explanation:
