Answer:
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
Explanation:
Provided cost of Proposal Y = $512,000
Residual Value = $0
Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.
Useful life = 4 years
Estimated cash inflow per year = $110,000
Discount rate = 9%
Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years
Thus present value of future cash inflows = $110,000 X 3.240 = $356,400
Note: Net Present Value = Present Value of Cash Inflows - Present Value of Cash Outflow = $356,400 - $512,000 = -$155,600
Final Answer
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
Answer:
The correct answer to this question is D) When on a television, National milk council is giving a message to the public, to drink milk , that would be called advertising.
Explanation:
Advertisement can be defined as a form of communication, where the main objective is to try influencing the behavior of target consumers. Here a product or service is being brought in to the attention of target consumers, so that consumers can be urged to buy that product or service. A producer develops a message here and places that message to the consumer ( in this question through TV done by national milk council ), with the intention of persuading the consumers to buy that product or service.
Answer:
Average receivables = $157,500,000
Explanation:
<em>Account receivable represent the amount of credit made by a business which remain uncollected as at the reporting date. In other words, they represent the amount that customers are owing the business in respect of credit sales.</em>
Average account receivables
=(opening balance + closing balance)/2
=( $142,650,000 + $172,350,000)/2
= 157,500,000.