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3 years ago

What is the minimum annual cash flow required to accept the project?

Business

1 answer:

Rashid [163]3 years ago

3 0

Explanation:

The minimum cash flow:

"To accept the project , Present value of future cash flows , must be equal to Initial Investment , so that "net present value" of project is equal to zero".

The company will likely to get increase and will be profitable if the NPV that is "Net present value" is "greater than zero".

NPV rule states that, a company manager or an "investor can invest" the money in a project where the "net present value" is greater than zero. It is not recommended to invest in a project where the "net present value" stands negative.

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Mona contracts to repair a computer for New Data, Inc. (NDI) for $450 and have it done by next Monday. Mona knows that without t

damaskus [11]

Answer:

$5,000

Explanation:

Consequential damages are damages that result from the one party in a contract not performing their part or breaching the contract.

In this case, New Data can sue Mona for consequential damages resulting from Mona not performing her contractual obligations. The damages that New Data can recover = $5,000 which is the profit from the lost sale. The $1,000 spent fixing the computer cannot be recovered.

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4 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?

mafiozo [28]

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

8 0

3 years ago

Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a

Nastasia [14]

Answer:

5.01%

Explanation:

The bond nominal yield to call is 5.01%

6 0

3 years ago

Read 2 more answers

Coronado Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $140,800 Allowance

-BARSIC- [3]

Answer:

a) Dr Bad Debt Expense $3,152

Cr Allowance for Doubtful Accounts $3,152

b) Dr Bad Debt Expense $7172

Cr Allowance for Doubtful Accounts $7172

Explanation:

A. Preparation of the journal entry to record bad debt expense assuming Coronado Company estimates bad debts at 4% of accounts receivable

Dr Bad Debt Expense $3,152

Cr Allowance for Doubtful Accounts $3,152

B. Preparation of the journal entry to record bad debt expense assuming Coronado Company estimates bad debts at 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance.

Dr Bad Debt Expense $7172

Cr Allowance for Doubtful Accounts $7172

Working

(a) Allowance for Doubtful Accounts = 4% × $140,800 = $5,632 (desired credit balance in allowance account)

$5,632 - $2,480 = $3,152

(b) Allowance for Doubtful Accounts = [(4% × $140,800) + $1,540] = $7172

6 0

3 years ago

The manager at Tom's Taxidermy expects to sell units at each unit. In order for the manager to breakeven, the manager must sel

andre [41]

The manager at Tom's Taxidermy expects to sell 900 units at $80 each unit. In order for the manager to breakeven, the manager must sell 100 units. What is the margin of safety in dollars?

Answer:

$64,000

Explanation:

Given that, the margin of safety is a term that describes the disparity between the actual sales volume and the breakeven volume.

In this case, Tom's Taxidermy expects to sell 9,00 units at $80 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:

MS = ( 900 - 100) * $80

MS = 800 * $80

= $64,000

Therefore, the right answer as Margin of Safety in dollars = $64,000

6 0

4 years ago