Answer:
Ending Inventory = $10,000
Explanation:
Calculating the ending inventory using the lower of cost and net realizable value (NRV):
It means we have to take the inventory cost, which is lower between the original cost and net realizable value. Therefore, for Model A -
Inventory Quantity × Unit Cost (Cost or NRV which is lower) = Total ending inventory cost
100 × $ 100 = $10,000
(We have used the original cost as it is lower than NRV cost)
Answer:
Multiple Choice
s
IRR increases
IRR decreases
IRR remains constant
The correct option is that IRR increases
Explanation:
The initial IRR would be calculated while also the increase in cash flow from $200 to $100 in the first two years would be incorporated into computing a second IRR using IRR formula in excel:
=IRR(values)
The values for first scenario are:
Year cash flow
0 -$1000
1 $100
2 $5,100
IRR is 131%
Second scenario:
Year cash flow
0 -$1000
1 $200
2 $5,200
IRR is 138%
IRR increases by 7% (138%-131%)
Prices are increasing.
'Prices' are generally a measure of a bundle of goods and services that consumers purchase on a regular basis.
The answer to this question is Critical thinking.
Critical thinking is also known as critical analysis which means analyzing data, facts, and evidences to make a judgement. This also means evaluation, conceptualizing, and analyzing ideas and facts to create an answer or judgement. Some of the skills related to critical thinking are problem solving skills, reasoning skills, objectivity, and interpretation.
