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Sergio039 [100]
3 years ago
5

Which of the following would not be included in calculating the incremental cash flow for a project? The firm expects sales of t

he new product to be $5,000,000 per year. Working capital will decrease by $100,000 at t=0 The firm must pay $3,000,000 for equipment to produce the new drink. The firm expects sales of existing drinks to decrease by $500,000 per year because current customers will switch to the new drink. The property on which the plant will be built has bought in 1950 for $10,000.
Business
1 answer:
Galina-37 [17]3 years ago
6 0

Answer:

The property on which the plant will be built has bought in 1950 for $10,000.

Explanation:

would <u>not </u>be included

sales represent cash proceeds, so should be considered.

decrease in working capital, means assets decrease, cash is release to be used in something else

decrease in sales for another product also involve cash.

the cost of the property is irrelevant for the cash flow  for this product. it would not change the convinience in releasing a new drink the value of the property on 1950

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A nonprofit organization is
kow [346]

Answer:

the answer is E. a legal entity engaged in business activities solely with the intent of serving its employees without the intent of making a profit.

8 0
4 years ago
The Caesar Park Hotel generally caters to business customers during the week, so weekends are relatively quiet. The hotel has de
V125BC [204]

Answer:

It is trying to cultivate non peak demand. (B)

Explanation:

Non Peak demand are Minimum demand, hence in the case of Ceasar Park Hotel, they decided to promote mini vacation weekends for non business customers as a way of increasing the demand of their services during the weekends.

The Ceasar Park Hotel, observed that the weekends are relatively quiet, thus, they introduced 'the mini vacation weekends', as a way of 'cultivating non peak demand'.

7 0
3 years ago
If the interest rate is 7.5 percent, then what is the present value of $4,000 to be received in 6 years?
AlekseyPX

Answer:

d. $2,591.85

Explanation:

To solve we can use the present value formula defined by

PV=\frac{FV}{(1+r)^t}

where PV is present value, FV is future value, t is time and r is the interest rate , we can replace the values given in the question. Where 4000 is the future value, the time is t=6 years, and the interest rate is r=0.075, so we get

PV=\frac{4000}{(1+0.075)^6}=2,591.85

4 0
4 years ago
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit
Brilliant_brown [7]

Answer:

1. The loss contingency should be accrued

2.$5,000,000

3. $5,000,000

4. loss- product recall $5,000,000

liability- product recall $5,000,000

Explanation:

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $5.0 million. The fiscal year ends on December 31.

from the question we can deduce that:

1. This is a loss contingency and should be accrued because of the liability. The if the event will occur and the estimate is certain

2) loss: $5,000,000

3) liability: $5,000,000

4) loss- product recall $5,000,000

liability- product recall $5,000,000

a disclosure note is needed

3 0
3 years ago
Read 2 more answers
Which is the best measurement to use to determine who might have the absolute advantage?
Makovka662 [10]

Answer:

<u>low opportunity cost</u>

Explanation:

<u>Opportunity cost</u> is described as a process in which an individual sacrifices something when they tend to choose one thing or option over another option or thing.

<u>Low opportunity cost: </u>The term "low opportunity cost" is determined as the possibility of an individual's chosen investment returns to be lower than the forgone investment's returns.

4 0
4 years ago
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