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aliina [53]
3 years ago
8

True or false profitability index is a transformed version of npv.

Business
1 answer:
Kruka [31]3 years ago
7 0
It would be false. Hope this helped, have a great day! :D
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Grouper Company purchased a new machine on October 1, 2020, at a cost of $114,800. The company estimated that the machine will h
Colt1911 [192]

Answer:

$6,250

Explanation:

Cost of machine = $114,800

Salvage value = $14,800

Life of machine = 4 years

Depreciable cost = Cost - Salvage value

                             = $114,800 - $14,800

                             = $100,000

Date of purchase = October 1, 2020

Assets used for period in 2020 = 3 months

Annual depreciation:

= Depreciable cost ÷ life of assets

= $100,000 ÷ 4

= $25,000

Depreciation expense for 2020:

= Annual depreciation × (3 ÷ 12)

= 25,000 × (3 ÷ 12)

= $6,250

3 0
3 years ago
Write the president (me) a memo explaining your reasoning and suggest a new pricing strategy. (You can decide what kind of busin
slamgirl [31]

Answer:

To: President

From: General Manager Finance

Subject : Pricing strategy for existing products

Date : 20th June 2021

As you are aware about the declining sales of our various products. The main reason identified by our sales and marketing analysts for the declining sales is over pricing of various products. There have been increase competition in the market and new entrants have adopted strategy of economies of scale which enable them to sell the product at low price and gain market share. There we need to cut our costs and then reduce our profit margin to boost sales of our products. We can be profitable from volume sales strategy.

If you need to discuss further on this matter, we can arrange a meeting with head of different department to discuss the business strategy in more detail.

8 0
3 years ago
2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J
cestrela7 [59]

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

4 0
3 years ago
Ane is a director of eco packing company. dane's rights, as a director, do not include a right to​ ​participation. ​self-dealing
vampirchik [111]
Dwayne's rights, as a director, do not include a right to self-dealing. Self-dealing is the behavior of an executor, an lawyer, a company officer or other fiduciary that contains of captivating benefit of his position in a deal and acting for his own welfare relatively than for the benefits of the beneficiaries of the trust, corporate stockholders or his customers.
7 0
4 years ago
Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a
Alexxandr [17]

Answer:

Stockholder wealth growth should continuously be supposed of long term goal. It is in notice of shareholder or depositor that his prosperity continues to grow with smallest risk. Action which keeps stock at 20$ for numerous year and then increased to 40$ in year 5 is desirable as the wealth of the stockholder increases.

Sometime company capitalize in building dimensions so that it can yield more units of its product thus growing the sale. When the corporation is doing capex, stock price will remain stationary and as soon as its capex ends stock price will rise at fast pace.

5 0
4 years ago
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