A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helpin
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Answer:
Net present value 27.792
Explanation:
<u>Sales</u> 2.100 units x 20 net cash flow =<em> $ 42,000 cash flow per year</em>
<u>Present value of the first three years:</u>
C 42,000
time 3 years
discount rate: 0.12
PV $100,876.9133
For year 4 and 5 we need to check for the expected cashflow
<u>We will multiply each outcome by their probability:</u>
1,400 units x $20 per unit x 0.5 chance = 14,000
2,500 units x $20 per unit x 0.5 chance = 25,000
expected return: <em>39,000</em>
<u>present value of these years:</u>
Maturity $39,000.0000
time 4 end of year 4th
rate 0.12
PV 24,785.21
Maturity $39,000.0000
time 5 end of year 5th
rate 0.12
PV 22,129.65
<u>Net present value</u> will be the present value of the cash flow less the investment.
100,877 + 24,785 + 22,130 - 120,000 = 27.792
Answer and Explanation:
The computation of the ending inventory for the year 2021, 2022 and 2023 is shown in the attachment below
It is to be divided into two parts
1. Inventory converted to the base year in which the base year is considered by taking the cost index
2. Inventory converted to cash in which the inventory converted to the base year, cost index is considered so that the inventory converted to cash could come plus the value of the inventory using the LIFO method also comes
