Answer:
d. Project X
Explanation:
For Project X
Year Net cash outflow Net cash inflow Balance
0 -$77,000 -$77,000
1 $28,000 -$49,000
2 $28,000 -$21,000
3 $28,000 $7,000
4 0 $7,000
Payback period = 2 + $21,000 ÷ $28,000
= 2 + 0.75
= 2.75 years
For Project Y
Year Net cash outflow Net cash inflow Balance
0 -$55,000 -$55,000
1 $2,000 -$53,000
2 $25,000 -$28000
3 $25,000 -$3,000
4 $20,000 $17,000
Payback period = 3 +3,000 ÷ 20,000
= 3 + 0.15
= 3.15 years
Project X has a lesser than 3 year payback period. So, the correct option is D
Answer: Collect the product and replace it with a new one
Explanation: Full warranty on any manufactured product means that for the next one year after the purchase of such item, the buyer is entitled to return it for a replacement, once the item has a fault.
A full one year warranty on any product includes any manufacturers defect on products. Defects detected during the cause of the product usage within the stipulated period.
Answer:
The answer is: False
Explanation:
The labour force consists of people who are employed and those who are unemployed. The unemployed consist of three groups: unemployed but actively searching for a job, unemployed and not actively look for a job, those who are able to work but have given up the search for employment. The official rate of unemployment measures the number of unemployed people in a country's labour force. In this case, people who have given up looking for jobs and are not reporting themselves as unemployed but rather as out of the labour force, make the unemployment rate lower. If they were counted as part of the unemployed, then the unemployment rate would be higher.
Answer:
(B) Take any investment opportunity where the net present value (NPV) is not negative; turn down any opportunity when it is negative.
Explanation:
Net present value (NPV) simply differentiates between the present value of cash inflows and the present value of cash outflows.
And the rule is that a company should only invest or be engaged in any business that has a positive net present value and exclude themselves from businesses that have been negative net present value as this can increase the company's income.
Answer: The correct answer is <u>".B. There is no beginning inventory.".</u>
Explanation:
The weighted average method produces the same cost of manufactured goods as the FIFO method (First in First out) when there is no beginning inventory because there are no units at the beginning that drag the cost.