Answer:
NPV =$ 60,311.80
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
0 1 2 3
Operating cash flow 136,000 136,000 136,000
Initial cost (274,000)
Working capital (61,000 ) 61,000
Salvage value <u> </u> <u> </u> <u> </u> 1<u>5000 </u>
Net cashflow <u> (335,000) 136,000 136,000 212,000.</u>
PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
= 395,311.80
NPV =395,311.80 -335,000
=$ 60,311.80
Answer:
a.
Explanation:
Based on the scenario being described within the question it can be said that the statement that is most likely true is that the product cost of product B will be higher under ABC than under traditional costing. This is because Activity-based costing (ABC) bases their overhead costs on the actual consumption by each while traditional costs overhead is applied based on the amount of machine hours consumed. Therefore since product B is characterized as having lots of consumption then it's product cost will be higher under ABC costing.
The supply chain strategy that would work best for Patio Creations is the push strategy. This is further explained below
<h3>What is a push strategy?</h3>
A push marketing strategy, also known as a push promotional approach, is sim[ply defined as mone in which a company strives to take push its items to customers.
In conclusion, the push strategy helps the company strives to push its items to customers.
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It shows how businesses markets and households all buy and sell from each other to make profit<span />
