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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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The next 5 questions use the same below information. Company C had the following investment. Help them determine the financial s
valentinak56 [21]

Answer:

$143,600

Explanation:

Calculation for What is net income for 20X1 assuming the investment is short-term

Using this formula

Net income for 20X1 = Sales – Expenses + Unrealized gain on short-term investments

Let plug in the formula

Net income for 20X1 = $1,670,200 - $1,536,600 + $10,000

Net income for 20X1= $143,600

Therefore the net income for 20X1 assuming the investment is short-term will be $143,600

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4 0
2 years ago
Read 2 more answers
When do many companies expect to have a net loss
Korolek [52]
When outflow exceeds income.
6 0
3 years ago
Competitive firms hire workers until the additional benefit they receive from the last worker hired is equal to(i)the additional
xeze [42]

Answer:

The correct answer to the following question is option B) both statements i and ii are correct.

Explanation:

First of all the marginal product can be defined as the additional unit of product that a business can produce by using additional unit of input. And marginal revenue product refers to the change that occurs in the total revenue due to the production of additional unit of product.

Any competitive firm would hire additional workers only when the MRPL (marginal revenue product of labor) is greater than the wages paid to that labor and additional cost incurred in hiring those workers and they would stop hiring the workers when the MRPL is equal to the cost paid to the workers.

4 0
3 years ago
Tuity Fruity Beverage​ Company's operating activities for the year are listed below. Purchases ​$140 comma 700 Operating expense
blsea [12.9K]

Answer:

The cost of goods sold for the​ year is $134,300

Explanation:

The cost of goods sold for the​ year = Beginning inventory + Merchandise Purchased - Ending inventory

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3 years ago
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