Answer:
(A) 18,400 units
(B) 12,940 units
Explanation:
The computation of the equivalent units of production for
(A) Material = Units transferred out + Ending work in process
= 9,300 units + 9,100 units
= 18,400 units
(B) Conversion = Units transferred out + (Ending work in process × conversion percentage)
= 9,300 units + 9,100 units × 40%
= 9,300 units + 3,640 units
= 12,940 units
Answer:
Roper Spring Water should not buy the machine, since it produces a negative net present.
Explanation:
Summary of Cash Flows on the Machine are as follows :
Year 0 = ($230,000)
Year 1 = $55,000
Year 2 = $65,000
Year 3 = $75,000
Year 4 = $75,000
Interest rate = 7%
Using the CFj Function of the Financial calculator this will be computed as :
($230,000) CF j 0
$55,000 CF j 1
$65,000 CF j 2
$75,000 CF j 3
$75,000 CF j 4
i/yr = 7%
Therefore Net Present Value is - $3,385.13
Since this is a negative Net Present Value, Roper Spring Water should not buy the machine.
These types of damages are called “Compensatory damages”.
<span>Willis breached the contract but the breach was not
material. So as a way to compensate for the damages Willis have made, he
offered instead to pay $300 to put the correct faucets and linoleum in the
powder room.</span>
Answer:
A. If the motor scooter is sold for $2.480, then the net present value (NPV) for the product will be zero.
Explanation:
As we believe that The break even point is the point where the organization has no income gained and no loss incurred While the present net value is the value that determines whether or not the projects will be approved after considering the discounted cost.
It means that if the original investment is less than the present value then the proposal is otherwise refused, the break even point is where the net present value is zero
Hence, the first option is correct
Answer:
$74,932.66
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow from year 1 to 4 = $20,000
Cash flow in year 5 = $25,000
I = 12%
Present value = $74,932.66
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
