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nikklg [1K]
3 years ago
12

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask

Business
1 answer:
Tanya [424]3 years ago
6 0

Answer:

The potential buyer will ask three questions such as:

  • What is the likely return?
  • What can go wrong?
  • Is the risk worth the return?

Explanation:

  • To determine the uncertainty including returning associated throughout a purchasing decision, the realistic decision that the prospective purchaser wants to respond to or inquire is something listed above.
  • Because the purchaser wants to be sure concerning the possibilities acceptable to him regarding the probability of their return frequency including the uncertainties implicit throughout the returns.

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Ivanhoe Company purchased merchandise inventory with an invoice price of $10200 and credit terms of 2/10, n/30. What is the net
Zanzabum

The net cost of the goods if Ivanhoe Company pays within the discount period will be $9,996.

<h3>What does the credit score time period 2/10 N 30 mean?</h3>

2/10 Net 30 refers back to the trade credit presented to a consumer for the sale of products or services. 2/10 net 30 methods that if the quantity due is paid within 10 days, the consumer will revel in a 2% discount. Otherwise, the quantity is due in complete within 30 days.

As per information, 2% of 10,200 is equal to $204. The net cost of goods to be paid will be equal to

$10,200 - $204 = $9,996

Therefore, The net cost of the goods, if Ivanhoe Company pays within the discount period, will be $9,996.

Learn more about 2/10 N 30:

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7 0
2 years ago
Use of activity-based costing will result in the development of:
STALIN [3.7K]

Answer:

Option D Multiple activity-based overhead rates.

Explanation:

The reason is that the every cost pool has its own overhead rate and this results in separate overhead rate for each cost pool. This is the reason why the activity based costing is critized for complex and time consuming method however nowadays this issue is resolved because of management accounting softwares.

So option A, B and C are incorrect because they say that activity based costing gives only one overhead rate  which is not true and is the characteristic of absorption costing.

4 0
4 years ago
Velma and Keota (V&amp;K) is considering an investment opportunitiy. The investment requires V&amp;K to spend $11,751.44 to acqu
adell [148]

Answer:

The total present values of cash inflows is $12,057.92

The net present value is $306.48  

The IRR is 10%

Explanation:

The total present values was computed by multiplying each of the cash flow by a discount factor ,which is given as 1/(1+r)^n

r is the percent minimum  rate of return

n is the relevant year of cash flow

The computation is found in the attached.

The net present is the sum of present of inflows minus cash outflow

The formula for IRR is ,=irr(values) as contained in the excel file attached.

Download xlsx
8 0
3 years ago
Difference between capitalism and join stock
DaniilM [7]

Capitalism refers to the creation of wealth and ownership of capital and distribution. while Joint stock is a business owned by its investors, with each investors owning a share based on the amount of stock purchased.

8 0
3 years ago
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Service members who take the 25 percent or 50 percent lump sum option will receive _____ than they would have gotten if their re
wariber [46]
<span>Service members who take the 25 percent or 50 percent lump sum option will receive less in overall benefits than they would have gotten if their retirement benefits were spread out over normal monthly payments.Since this high percent lump sum option, it may affect decrease in funds flows to retirement benefits</span>
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4 years ago
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