Answer:
$12,000
Explanation:
The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.
Total capital balances = $30,000 + $20,000 = $50,000
Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.
Therefore, the amount of loss on realization is $12,000.
Answer:
Leave the price alone. Although it may lack some of the features that competitors’ models have, the Boss brand is well-recognized and well-respected in the market
Explanation:
You chose to lower the price to $359.That was the best choice.During the maturity stage of the product life cycle, increased competition eventually forces price cutting, and market share leadership may outweigh profit as a pricing objective, so this is a good option. However, it would take some research to determine whether the company can still make a profit at this price.
Answer:
E. Yes: The MIRR is 9.13 percent.
Explanation:
<em>The First Step is to Calculate the Terminal Value at end of year 4. </em>
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 5 - n)
= $107,500 x (1.134) ^ 3 + $196,100 x (1.134) ^ 2 + $104,500 x (1.134) ^ 1 + -$92,700 x (1.134) ^ 0
= $156,764.47 + $252,175,97 + $118,503 - $92,700
= $434,743.44
<em>The Next Step is to Calculate the MIRR using a Financial Calculator :
</em>
- $287,500 CFj
0 CFj
0 CFj
0 CFj
$434,743.44 CFj
Shift IRR/Yr 9.13%
Therefore, the MIRR is 9.13%
.
