The business cycle is the fluctuation in economic activity
Answer:
b. Sales, production, direct materials purchases, cash disbursements.
Explanation:
First, you calculate your sales.
Then, the amount produced to fulfill your sales and desired inventory stocks
Based on your production, you can calculate the direct materials purchases
Lastly, with the combination of raw materials purchases, along with other information, you generate the cash disbursements budget
a.- you need to know the production to know how much direct materials do you need. INCORRECT
c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT
d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT
Answer and Explanation:
The computation of the MIRR is shown below:
But before that terminal cash flow required to calculate
<u>
Year Cash Flows FV Factor Formula Terminal Value
</u>
<u> (Cash Flow × FV Factor) </u>
0 ($1,000)
1 $450 1.21 (1 +10%)^(2) $545
2 $450 1.1 (1 + 10%)^(1) $495
3 $450 1 1 $450
Terminal Cash Flow $1,490
now the MIRR is
![MIRR = \sqrt[n]{\frac{terminal\ cash\ flow}{initial\ investment} } - 1\\\\= \sqrt[3]{\frac{\$1,490}{\$1,000} } - 1](https://tex.z-dn.net/?f=MIRR%20%3D%20%5Csqrt%5Bn%5D%7B%5Cfrac%7Bterminal%5C%20cash%5C%20flow%7D%7Binitial%5C%20investment%7D%20%7D%20-%201%5C%5C%5C%5C%3D%20%5Csqrt%5B3%5D%7B%5Cfrac%7B%5C%241%2C490%7D%7B%5C%241%2C000%7D%20%7D%20-%201)
= 14.22%
As it can be seen that the MIRR is more than the WACC so the project should be accepted.
D. (It’s the kind I filed every year when I was employed by the state school system.)
Answer:
C
Explanation:
If the market price of a good increases, quantity demanded decreases and quantity supplied increases. This is in line with the law of demand and supply respectively.
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
