Businesses located in countries that have relatively weak domestic demand rarely make the leap to multinational enterprises beca
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Answer:
Location C costs least to the company as it only costs $461,160
Explanation:
We will evaluate all the three proposals
Location A Cost = $500,000
Location B
Down payment = $100,000
Annual year end payment = $50,000 for upcoming 20 years
Present value @ 8% = ( = 9.818 X $50,000 = $490,900
Net Present Value = $100,000 + $490,900 = $590,900
Location C
Payment of $40,000 at the beginning of each year, which means first payment will not be discounted and remaining 24 payments will be discounted.
Thus Present Value = $40,000 +( = $40,000 + 10.529 X $40,000 = $40,000 + $421,160 = $461,160
Thus Location C costs least to the company as it only costs $461,160
Option A. 300000.
The four main ways to account for inventory are specific identification, first in first out, last in first out, and weighted average methods.
The retail inventory method is an accounting method used to estimate the value of a store's merchandise. The retail method provides the ending inventory balance for a store by measuring the cost of inventory relative to the price of the merchandise.
The FIFO method is the most popular inventory method because it's the one that most closely matches the actual movement of inventory for most businesses. This method assumes that the first products you acquired will be the first that are sold.
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