Savings accounts is the most liquid
Answer:
Hence, the minimum transfer price = $2
Explanation:
Transfer price is the price at which goods are exchange between branches or divisions of the same group
Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows
Minimum transfer price = Variable cost
It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division is currently having excess capacity- it can meets all demands both external and internal.
<em>Therefore, any offering price equal to or above the variable manufacturing cost of $2 would be acceptable and optimize the group profit</em>.
Hence, the minimum transfer price = $2
Answer:
A) 19.91%
Explanation:
Net present value of cash flow at 19.91% can be calculated as follows
- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶
= -100000 + 25018 +20864 +17400 +14511 +12101 +10092
= 0 ( approx )
So the IRR for the project is 19.91 % .
It’s C. because it’s true
Answer:
Loss= $5,000
Explanation:
Giving the following information:
Selling price= $50,000
Purchase price= $85,000
Accumulated depreciation= $30,000
<u>First, we need to calculate the book value:</u>
Book value= Purchase price - Accumulated depreciation
Book value= 85,000 - 30,000 = $55,000
<u>If the selling price is higher than the book value, the company gain from the sale.</u>
Gain/loss= selling price - book value
Gain/loss= 50,000 - 55,000
Loss= $5,000
