Answer: the difference between the present value of cash inflows and present value of cash outflows
Explanation:
The value of money is always changing and usually for the worst. Inflation means that $1 today is not worth $1 in a year's time. This poses a risk to investors who want to make profit and can't do that if they do not cater for inflation or the loss of value in their profit estimations. This is where Net Present Value comes in.
NET PRESENT VALUE works by subtracting the present value of Cash Outflows ( investment) from the present value of Cash Inflows (Revenue).
To do this, a DISCOUNT RATE is used which is essentially a value that people believe the currency involved will reduce by going forward. This Discount Rate equates the value of money in the future to it's value now.
Once that is ascertained, a proper comparison can be made to see if the investment is worth it.
Answer:
Inelastic
Explanation:
When the price of hamburgers increased from $1.50 to $2.75, the quantity demanded decreased from 375 units sold to 250 units sold. Using the midpoint method, hamburgers are said to be inelastic
1. Change in price = 2.75-1.5 / (1.5+2.75)/2 = 1.25/2.125 = 0.59
2. Change in quantity demanded = 375-250 / (375+250)/2 = 125/ 312.5 = 0.4
3. Price Elasticity = 0.4/0.59 = 0.68
4. When the value of elasticity is less than 1, it suggests that the demand is insensitive to price and is inelastic
Answer:
$0
Explanation:
Finerly should recognize $0 of revenue upon delivery to distributors. Because of the uncertainty of the returns due to the fact that Finerly does not know if it will have to accept the cosmetics back from the distributors if the cosmetics are not sold, Finerly cannot or should not recognize revenue until it either can estimate in a better way its returns or when the sales actually occur.
Answer:
A) Year 1 cost of goods sold
B) Year 2 cost of goods sold
D) Year 2 beginning inventory
Explanation:
A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.
D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.
B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.
Frank and lillian gilbreth developed the principle of motion economy, which said that every job could be broken down into a series of elementary motions. The motion economy has principles that are in place to improve the manual work within a manufacturng career field. These are to help a manufacturer worker not be exhausted so quickly and reduce the trauma that may occur within this career field.