Answer:
NPV = 138,347.55
Explanation:
<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>
We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:
<em>Prevent Value of operating cash flow</em>
PV =A× (1- (1+r)^(-n))/r
A- 23,900, r - 12%, n- 5
PV = $23,900 × (1- (1.12)^(-5))/0.05
=206,769.963
<em>PV of Working Capital recouped</em>
PV = 5600× 1.12^(-5)
= 3,177.59
NPV = initial cost + working capital + Present Value of working capital recouped + PV of operating cash inflow
NPV = (66,000) + (5600) + 3,177.59 + 206,769.96
NPV = 138,347.55
Answer:
Product Cost Variable Or fixed Direct or indirect
1. Rubber core for soccer ball Variable Direct
2. Thread to hold leather together Variable Indirect
3. Taxes on factory Fixed Indirect
4. Wages on Assembly workers Variable Direct
5. Machinery depreciation Fixed Indirect
6. Annual flat fees paid for office security Fixed Indirect
7. Leather cover for soccer balls Variable
The principle of open opportunity in the marketplace means that anyone who wants to put up a business is welcome to do so. However, the success of his business rests entirely on how well it is received in the market.
Guaranteeing success to everyone in the marketplace is impossible. Competition is always present. Demand and supply can be affected by factors beyond human control.
Answer:
Unearned membership revenue of $9,000
Explanation:
The sales on credit during January 2017 was valued at $12,000 ($200 x 60).
In March 2017, customers paid $3,000, leaving the balance of $9,000 outstanding.
Since the season for which sales and collections were made starts March 1, 2017, when reporting the financial statements for the period ending March 31, 2017, the Membership Revenue would be $3,000 only and the balance $9,000 would be reported as Unearned Membership Revenue in the Balance Sheet with a further $9,000 reported in the Accounts Receivable to balance the records.
This shows that Unearned Membership Revenue of $9,000 is the only valid statement.
