Answer:
The net present value of the machine = $ 1590
Explanation:
Solution
The first step is to compute the present value of annual cash inflows as shown below:
The present value of the inflow of cash = (Annual inflow of cash * PVIFA rate, period)
which is
= $11,000 * PVIFA 12%, 4
= $11,000 * 3.0373
= $ 33,410
Note: the present value of inflow of cash has been computed by multiplying Annual cash inflows and Cumulative factor of 12% and 4 years. Annual cash inflow is $11,000 and from the table of PVIFA rate for a 4 periods at 12% discount rate is 3.0373.
Next step is to compute the Net value as shown in the equation below:
Net present value = (present value of inflow of cash - Investment)
which is
=$ 33, 410 - $ 35,000
= $1590
The net present value is = $ 1590
Note: Net present value has been computed be subtracting investment from the present value of inflow of cash.
The opening investment is $35,000 and the present value of inflow of cash is $33,410. since the initial investment is more than the present value of cash inflows, the net present value is seen as negative.
Answer:
a) true
Explanation:
This is true because, increasing the price of the product sold by an organisation directly lead to the reduction of the operating cost of the said organization, all other things being equal. <em>For example, a glass manufacturing company increasing the selling price per unit glass from $40 to $90 will definitely lead to operating cost reduction.</em>
. The amount of the purchase cost that should be allocated to the land and building are as follows:
Land = $233,750
Building = $701,250
The company would not recognize a gain on the purchase but uses the appraised values to determine the costs to be allocated to the two assets.
c. Statements model:
Balance Sheet Income Statement Statement of
Cash Flows
Assets = Liabilities + Equity Revenue - Expenses = Net Income
Cash Land Building
($935,000) $233,750 $701,250 $0 - $0 = $0 ($935,000) IA
d. General Journal
Account Titles Debit Credit
Land $233,750
Building $701,250
Cash $935,000
<h3>Is a debit money in or out?</h3>
When your bank account is debited, money is taken out of the account.
The opposite of a debit is a credit, in which case money is added to your account.
Learn more about debit and credit here:
<h3>
brainly.com/question/14283668</h3><h3 /><h3>#SPJ4</h3>
Answer:
D
Explanation:
Per capita GDP measures the standard of living of the people in a country. The higher the Per capita GDP, the higher the standard of living
Per capita GDP = GDP / population
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
South Korea operates a market economy compared with North Korea. A market economy leads to greater efficiency in production when compared with a command economy.
A market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions
Characteristics of a market economy
• Private ownership of means of production
• freedom of choice. Producers are free to produce what they desire
• competition among producers
• no government intervention.
A command economy is an economy where production decisions are made by the government.
Answer:
Incremental profit $4,000
Explanation:
Calculation to determine If the order is accepted, incremental profit (loss) will be
Using this formula
Incremental profit (loss)=(Special order units*unit price)- [Special order units*(Variable cost +Additional freight costs)]
Let plug in the formula
Incremental profit (loss)=(2000* $54) - [2000*($50+$2)]
Incremental profit (loss)=$108,000-(2,000*$52)
Incremental profit (loss)=$108,000 - $104,000
Incremental profit (loss)=$4,000
Therefore If the order is accepted, incremental profit will be $4,000
