Answer:
Is the best method of analyzing mutually exclusive projects.
Explanation:
Net present value is equal to the present value of all the future cash flows of a project, less the initial outlay of project.
Net present value analysis simply concluded about a project to be worth doing when it finds the present value of future cash flows greater than the initial investment and vice versa.
We just have to see which is higher, the present value of future cash flows or the initial investment.
It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.
Answer:
Normative, positive
Explanation:
Positive statement - it is referred to those statement that can be tested for authenticity on the basis of given evidence. This statement deal with facts and test for rejection.
Normative statement - it is referred to that statement those based on judgment. it cannot be true or false. it is based on the value of judgment
for example - the price of the mobile is expected is considered to be expensive. it cannot be true or false.
Short run speculation in currencies can create a self fulfilling prophecy, at least for a time, where an expected appreciation leads to a stronger currency and vice versa.
<u>Explanation:</u>
The currency of a country can either appreciate or it can depreciate. If the currency of a country appreciates, it means that it has gone stronger in the currency market.
But if the currency of the country depreciates, then the currency has gone weaker in the market of the currency. With the appreciation of the currency, the imports for that country increases but it's exports decreases because it becomes expensive for other countries.
Answer:
Net present value = $13,110
Explanation:
The computation of the net present value is shown below:
Years Cash flows Present value factor Present value
0 -$400,000 1 -$400,000 (A)
1 $200,000 0.893 $178,600
2 $150,000 0.797 $119,550
3 $90,000 0.712 $64,080
4 $80,000 0.636 $50,880
Net present value $13,110 (B - A)
Answer:
$28,240
Explanation:
Total sales = $334,000
Variable cost:
Sales commissions = $334,000 × 6%
= $20,040
Total fixed costs = Sales manager's salary + Advertising expenses
= $5,300 + $2,900
= $8,200
Total selling expenses = Total variable cost + Total fixed cost
= $20,040 + $8,200
= $28,240
Therefore, the total selling expenses to be reported on the selling expense budget for the month of February is $28,240.
