Answer:
The Net Present Value (NPV) of this project is <u>$93,405.59</u>.
Explanation:
Note: Find attached the excel file for the calculation of the NPV of this project.
Net present value (NPV) refers to the present value of cash inflows minus the present value of cash outflows over a specified period of time.
On its own, present value (PV) refers the value that a future sum of money or stream of cash flows has now or currently given a specified rate of return. The formula for calculating the PV is given as follows:
PV = FV / (1 + r)^n
Where,
FV = Future value
r = discount rate. This is given as 10% in this question
n = Relevant period, e.g. year
The above explanation and formula together with other stated formulae in the attached excel file is used in calculating the NPV of this project.
Answer:
Null hypothesis: The mean price of restaurant meal is the same as fixing a comparable meal at home.
Alternate hypothesis: The mean price of restaurant meal is less than fixing a comparable meal at home.
Explanation:
A null hypothesis is a statement from a population parameter which is either rejected or accepted (fail to reject) upon testing.
An alternate hypothesis is also a statement from the population parameter that negates the null hypothesis and is accepted if the null hypothesis is proven false.
Answer: Option E
Explanation: In simple words, functional level strategies refers to the plans made for several departments so that the overall development of the organisation could take place. These strategies usually specifies the objectives and the expected outcomes.
Mergers and acquisition refers to the situation when one company takes over another company. It does not specify any goals or objectives nor it assigns any duties. It is an action and not a plan.
Hence from the above we can conclude that the correct option is E.
Answer:
Consider the likelihood that the risks could result in material misstatements.
Explanation:
The risk of material misstatement is the risk that the financial statements of an organization have been misstated to a material degree. This risk is assessed by auditors at the following:
At the assertion level. This is further subdivided into inherent risk and control risk. Inherent risk is the susceptibility of an assertion to misstatement because of error or fraud, before considering controls. Control risk is the risk of misstatement that will not be prevented or detected by a reporting entity's internal controls.
At the financial statement level. Relates to the financial statements as a whole. This risk is more likely when there is a possibility of fraud.