Answer:
B
Explanation:
Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.
The formula is (cash flow)/(1+r)^i
Revenue - $750,000
Expenses - $650,000
Increase in net income - 100,000
Annual depreciation charge - 650000/5 =$130,000
Discount rate - 12%=3.605
Present cash value =( $100,000+$130000) = $230,000
Please note that depreciation is added back as it is a non cash expenses
Present value of cash flow = annual cash flow * discount rate
=$230,000*3.605 =829,150
Net present value = 829150-650000= 179,150
When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids the extra costs of developing and producing additional versions of the product.
For better understanding, lets explain the term
- Market segmentation is simply known as the act of gathering or aggregating known buyers into groups that have common needs and will respond almost the same to a marketing action.
- Organization that makes only a single product or service do try to avoids any extra costs that may arise because they want to focus on just one thing
From the above, we can therefore say that the answer When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids tahe extra costs of developing and producing additional versions of the product.
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Answer:
Dr cash $375,000
Cr unearned revenue $375,000
Dr unearned revenue $37,500
Cr revenue $37,500
Explanation:
The total amount realized from the sale of tickets is $375,000($250*1500)
However,the cash proceeds should be debited to cash while it is also credited to unearned revenue
The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500
The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned
Explanation:
Refers to how well a product or service meets the customer's needs
Answer:
B
Explanation:
We are to find the present value of the annuity
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 10 = $4,800
I = 5%
Present value = 37,064.16
To find the PV using a financial calculator:
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
