Answer:
a-1. NPV for the project is $8,381,576.17
a-2. A. Yes. Accept the Project.
b. 40.84 % and 40.84 %
Explanation:
The Net Present Value can be determined using a Financial Calculator as follows :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
11 % I/YR
Shift NPV $8,381,576.17
A Company should accept projects that have a positive Net Present Value.Therefore, Accept this project.
Calculation of the Internal Rate of Return using a Financial Calculator :
-38,600,000 CFj
62,600,000 CFj
- 11,600,000 CFj
Shift IRR 40.84 %
Answer: False
Explanation:
In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.
Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.
False. The more you smoke, the weaker your lungs become, and the higher your risk for lung cancer becomes. Hope this helps! :)
Suppose the sales increased by 50% in year 2 then it would be normal if the account receivable increased by 35%. However, I need to see the company accounts to understand what is going on. If the turnover is still the same then we can say that clients are paying slower.
Answer:
Correct option is (c)
Explanation:
An accountant will record only those cost in the financial statements that have incurred on account of carrying out the business.
In this case, option (a) and (b) are opportunity cost of carrying out shoe shine business. These are the income that John could have earned if he did not start shoe-shine business.
Cost of shoe polish is an operating expense incurred to run his shoe-shine business. So this cost will be included by the accountant in the financial statements.
