Answer and Explanation:
The computation is shown below:
NPW of X is
= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)
= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427
= -$49,605.85
And,
NPW of Y is
= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)
= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427
= -$45,447.11
Based on the above calculations as we can see that net present cost of Y is lower than the net present cost of X so Y should be selected
The answer to your questin is THE 4TH ONE Please mark as brainlest if helps
Answer:
a. Incremental analysis.
b. Sunk cost.
c. Relevant information.
d. Opportunity cost.
e. Joint products.
f. Out-of-pocket cost.
g. Split-off point.
Explanation:
a. Incremental analysis: examination of differences between costs to be incurred and revenue to be earned under different courses of action.
b. Sunk cost: a cost incurred in the past that cannot be changed as a result of future actions. Sunk cost can be defined as a cost or an amount of money that has been spent on something in the past and as such cannot be recovered.
c. Relevant information: costs and revenue that are expected to vary, depending on the course of action decided on. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
d. Opportunity cost: the benefit foregone by not pursuing an alternative course of action. Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
e. Joint products: products made from common raw materials and shared production processes.
f. Out-of-pocket cost: a cost yet to be incurred that will require future payment and may vary among alternative courses of action.
g. Split-off point: the point at which manufacturing costs are split equally between ending inventory and cost of goods sold. Thus, it give rise to joint products that emerge from the same raw materials and a shared manufacturing process.
Answer:
D. $4,902
Explanation:
Schickel Inc.
RELEVANT COST can be defined as the cost that are often said to be incurred only when making specific and important business decisions because this relevant cost is used to determine whether to sell or keep a business which is why relevant cost concept is useful for eliminating some information from a particular decision-making process.
Relevant cost=
New stocks of the material purchased for $6.45 per liter.
Relevant cost of 760 liters of the material to be used.
Hence;
= $6.45 per liter ×760 liters = $4,902
Therefore the relevant cost of the 760 liters of material B39U is $4,902
