Answer:
Away from food
Explanation:
Chemicals should be stored away from food because the slightest contact between them would lead to chemical contamination
The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method
The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.
It is to be measured in years normally.
For finding the disadvantage, we need to find out the following information related payback period
- It is easy to calculate
- The cash flows earned after the payback period should not be used
- There is no requirement to determine the present value factor for measuring the payback period.
- Also, it does not use for distinct cheap projects from lower ones
So this is the reason this method ignored the times value of money
Therefore, we can conclude that, the correct option is b.
Learn more about the payback method here: brainly.com/question/16255939
Answer:
$444,444.44
Explanation:
Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year
The required return on this investment is 7.2%
= 7.2/100
= 0.072
Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows
PV= C/r
= $32,000/0.072
= $444,444.44
Hence the amount of money that will be paid for the policy is $444,444.44
Answer:
D. $77,600
Explanation:
The $77,600 made to purchase equipment would be reported as a cash outflow in the investing activities section. This is because asset purchased such as equipment is an investment while the cash used to purchase the asset is regarded as cash outflow.
Dividends are recorded in the financing section, while cash paid for interest and paid to suppliers would be recorded in the operating activities.