Answer:
Step 1: Identify and define the problem
Explanation
This is the first goal to achieve for the company in order to select an alternative upon a rational decision-making process.
Answer:
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Explanation:
Calculate the PVIFA ( Present value of interest factor annuity ) at r = 12 % and n = 4 years
= [ 1 - (1.12)-4 ] / 0.12 = 3.03734935
Minimum annual cash flow needed = Investment / PVIFA = 403,014 / 3.03734935
= 132686
The equipment shall be financially attractive when we have annual cash inflow in excess of 132,686
Dollars - currency exchange market
Shares -stock markets
Wheat-commodity market
Answer:
$559,020
Explanation:
The computation of net sales is shown below:-
Total sales = $640,000
Sales discount = $14,500 + $1,450
= $15,950
Sales return = $39,000 + $4,680
= $43,680
Sales allowance = $19,000 + $2,530
= $21,350
So,
Net sales = Total sales - Sales discount - Sales return - Sales allowance
= $640,000 - $15,950 - $43,680 - $21,350
= $559,020
Therefore for computing the net sales we simply applied the above formula.
