Answer:
a. Payback period:
Board game:
= Year before payback + Amount left / Cashflow in year of payback
= 1 + (1,200 - 690) / 950
= 1.54 years
Game DVD:
= 1 + (2,700 - 1,750) / 1,570
= 1.61 years
b. NPV
Board Game
= 690 / 1.12 + 950 / 1.12² + 210 / 1.12³ - 1,200
= $322.88
Game DVD
= 1,750 / 1.12 + 1,570 / 1.12² + 800 / 1.12³ - 2,700
= $683.52
c. IRR
Look at attached picture
Board Game IRR = 29%
Game DVD IRR = 28%
d. Incremental IRR
Look at attached picture
= 27%
Answer:
The price of the cereal would fall.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
When there is a surplus of a new brand of cereal in the market. What will likely happen to the price of the cereal is that the its price would fall.
Answer:
True.
Explanation:
Managerial accounting involves managers using accounting information to better inform themselves before making business decisions. It involves analysing, interpreting and communicating financial data to managers to aid in achievement of organisation's goals.
Managerial accounting is for internal use in the business. Data is modified to meet specific need of the end-user. For example a manager may want to see sales figures for a quarter compared to business target. This will give an idea if the business is meeting it's objectives.
Answer:
Answer in this case will be 39 months
Explanation:
In given data estimated negative cash flow from operation is (155,000), this is assumed that there will not be any cash flow from investing or financing activities.
data given for accounts receivable and inventory is irrelevant since both are part of operating cash flow which is already estimated.
there for closing balance at the end of year is $ 500000 divided by negative cash flow of (150,000) equals to months company will able to continue without positive cash flow or additional financing.
