Answer:
It is more profitable to continue processing the units. Income will increase by $10,560.
Explanation:
Giving the following information:
Number of units= 330
Sold as-is:
Selling price= $22
Continue processing:
Selling price= $95
Unitary variable cost= $41
<u>We won't take into consideration the firsts production costs. They are equal in both options, therefore, they are irrelevant.</u>
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Sold as-is:
Effect on income= 330*22= $7,260 increase
Continue processing:
Effect on income= 330*(95 - 41)= $17,820
It is more profitable to continue processing the units. Income will increase by $10,560.
Answer:
The Present worth is $777930.25
Explanation:
FInd the NPV of the cashflows
NPV = 200000/(1+0.09)^1 + 200000/(1+0.09)^2 + 200000/(1+0.09)^3 + 200000/(1+0.09)^4 + 200000/(1+0.09)^5
= $777930.25
Therefore, The Present worth is $777930.25
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<span>Money provides four key functions for an economy,
1. medium of exchange
2. unit of account
3. store of value
4. standard of deferred payment
"when money specifies the value of something", it is performing a function as a medium of exchange, which is the primary function of money. Medium of exchange means the money is used to conduct transactions.
people use money to buy and sell goods.</span>