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 know that
The break even point is the point at which the firm has no profit earned and no loss suffered
While the Net present value is the value that determines whether the projects should be accepted or not after considering the discounted rate.
That means if the initial investment is less than the present value than the project is accepted otherwise rejected
Moreover, the break even point is the point where the net present value is zero
Therefore, the first option is correct
You didn't give the options but examples that I found is tools & equipments
Answer:
+$200,000
Explanation:
The networking capital increase would be backed at the end of the project.
so, increase in net working capital result in positive cash flow at end of the project.
Working capital invested at beginning would recoup at the end of the project.
Trade discounts are offered to customers with high volume
orders in a specified date of payment. In the problem given, the estimated
price of the jacket is $50 but with 40% discount within 10 days of purchase.
Therefore, $50 * 40% = 20. The manufacturer will receive $30 which is the price
less discount.
