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Savatey [412]
3 years ago
11

The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning a

nd desired ending finished goods units, respectively?
Business
1 answer:
Trava [24]3 years ago
3 0

Answer:

Beginning units are 6,000

Desired ending units are 10,000

Explanation:

The required production unit + beginning FG units would be equal to the ending FG units + expected unit sales

Beg FG + 104,000 = End FG +100,000

6,000 + 104,000= 10,000 + 100,000

110,000 = 110,000.

Beg FG = 6,000

End FG = 10,000

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Answer:

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\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right]

The formula we use the present value of a lump sum:

\frac{Maturity}{(1 + rate)^{time} } = PV

We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company

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