Answer:
-$414,444.44
Explanation:
The computation of the net present value is shown below:
Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)
= -$1,570,000 + $104,000 ÷ (12% - 3%)
= -$1,570,000 + $1,155,555.56
= -$414,444.44
Hence, the net present value is -$414,444.44
Since the net present value comes in negative so the project is rejected
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Answer:
$150,300
Explanation:
The computation of the correct initial cash flow is shown below:
= Capital expenditure + net after taxes + initial investment in inventory
= $33,000 + $112,000 + $5,300
= $150,300
The net after taxes is also term as opportunity cost
And, the initial investment in inventory is also term as change in working capital
All other information which is given is not relevant. Hence, ignored it
Answer:
<u>True</u>
Explanation:
If this $27,500 fine is actually per passenger, it could greatly incentivize airlines to cancel fewer flights than before. Consider that, most airline tickets are far lower than $27,500, so if airlines are paying fines worth many times more than they actually collect per individual tickets, they will incure great losses.
The accounts that would affect the net income in the income statement are:
- (2) Merchandise inventory.
- (3) Cost of goods sold.
- (4) Transportation-out.
- (7) Selling expense.
- (8) Loss on the sale of land.
- (9) Sales revenue.
<h3>Which items affect net income?</h3>
The ending and beginning merchandise inventory play a role in the cost of goods sold which is deducted from net income.
Selling expenses such as transportation-out are also deducted as well as the loss on sale of land. Sales revenue is added to net income.
Find out more on accounts in the income statement at brainly.com/question/21851842.
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