Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
Answer:
Performance
Explanation:
The ultimate responsibility of the manager is to accomplish the high performance that represent the attainment of the organization goals via using the resources in a best way i.e. efficient and effective manner
So the responsibility of the manager is to accomplish the high performance so that the company could attain its goals and objectives
Answer:
Nursery Supplies at year-end 76,000,000
Gain on investment 12,000,000
Explanation:
Considering is considered a long-term investment for Florists International and the percentage of owership is significant we use equity method.
value of the investment at year end:
begining 67,000,000
income 60,000,000 x 20% = 12,000,000
cash dividends 10,000,000 shares x 1.5 x 20% = (3,000,000)
ending investment 76,000,000
<span>To find the cost of going to this college in four years, sum all the values given (9350 + 8630 + 1650 + 2140 + 1110), which gives $22,880 for attending. Subtracting 4500 for grants and 8630 for not having to live on-campus gives a value of $9750 required. Dividing this value by 48 months (the time left before he begins attending) gives an approximate value of $203.13 needed to be saved per month without any interest being added. To make sure that Caleb has enough if the $3.13 per month isn't made up by interest down the line, $300 should be saved each month.</span>
