In this situation, Nooyi is an example of someone who uses SOCIAL POWER. Power refers to the ability to directly influence or control the behavior of others. A person or business is consider to have social power if he is been copied for his knowledge, skills, information etc, because of his expertise in a particular area and because he was able to achieve his set goals.
Answer:
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
Explanation:
Provided cost of Proposal Y = $512,000
Residual Value = $0
Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.
Useful life = 4 years
Estimated cash inflow per year = $110,000
Discount rate = 9%
Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years
Thus present value of future cash inflows = $110,000 X 3.240 = $356,400
Note: Net Present Value = Present Value of Cash Inflows - Present Value of Cash Outflow = $356,400 - $512,000 = -$155,600
Final Answer
Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400
There are five elements in Internal Control of an organization. In establishing procedures for the handling of incoming checks belongs to the element Policies and Procedures and the element that deals with the oversight of the internal control system is the Risk Assessment.
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