Answer:
The Firm should not Buy and Install the press as it delivers a negative NPV of -$24,924 at 11% discount rate over its 4 year operations
Explanation:
The General rule is to appraise the investment based on various appraisal techniques.
A technique that should be considered must have special focus on the time value of money, the required rate of returns expected by the firm and other Cashflow considerations.
The Net Present Value (NPV) approach will be the best method to proceed with.
The NPV approach typically falls under the following decision tree:
a. If NPV is negative (Reject the proposal)
b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)
c. If Zero (this is the breakeven line at which the Project covers all its cost but does not return a profit.) Also referred to as the IRR
Kindly refer to the attached for detailed workings
Answer:
B. $300,000
Explanation:
The computation of the reduction of retained earning amount is shown below:
= Number of shares of common stock × stock dividend percentage × market value
= 1,000,000 shares × 6% × $5
= $300,000
Since the dividend amount is adjusted while computing the ending balance of retained earning balance and the same is to be considered in the computation part.
All other information which is given is not relevant. Hence, ignored it
If there is something wrong with the product, or if there is something in it i.e bugs
Answer:
Referral
Explanation:
Referral is the term which is described as the act or way of telling someone or a person regarding the positive features or attribute of the business or the person, who is being referred by the person.
For example, referral is telling someone or person that the certain business or the person having a good product or the service, and then that person visit the place.
Under this scenario, Tom referred Tudor to contact them regarding the new game. So, it is an example which the Judy uses referral method or way with Tudor.