Answer:
Project A:
Payback Period = Years before full recover + (Un-recovered cash inflow at start of the year/cash flow during the year)
= 2 Year + ($12,000 / $18,000)
= 2 Year + 0.67 years
= 2.67 Years
<u>Payback Period - PROJECT A = 2.67 Years</u>
Project B:
Payback Period = Years before full recover + (Un-recovered cash inflow at start of the year/cash flow during the year)
= 3 Year + ($17,000 / $224,000)
= 3 Year + 0.08 years
= 3.08 Years
<u>Payback Period - PROJECT B = 3.08 Years</u>
Answer:
Increasing the sales price is a bad idea since total revenues will decrease.
Explanation:
The question is incomplete since we are not given the information about other costs, but we are given enough information to calculate the price elasticity of demand:
PED = % change in quantity demanded / % change in price = -12% / 7.5% = -1.6 or |1.6| in absolute terms.
Since the PED is |1.6|, it is price elastic. This means that a change in price will result in a proportionally larger change in quantity demanded. E.g. assume original price is $100 and the original quantity demanded is 100. Total revenue = $10,000. If the price increases to $107.50, the quantity demanded will decrease to 88, resulting in a total revenue of $9,460.
Answer: <em>Option (A) is correct.</em>
Explanation:
A treasurer is known as a an individual who is responsible for working the treasury of a/an firm/organization. The compelling main functions of an organizations treasurer usually include liquidity and cash management, corporate finance and risk management. They are also primarily responsible for increasing capital via issuing bonds, stocks and investing funds. They tend to report back to CFO.
