Answer:
D. The payback period is less than 2 years.
Explanation:
Discount rate 5%
0 1 2
intital investment -10
cash flow 0 30
Total cash flow -10 0 30
NPV 17.21
IRR 73%
Therefore, The NPV is 17.21 and is positive, the statement is True.
IRR > 50%, Therefore the statement made is True
Accounting rate of return = {[(30 - 10)/10]^(1/2)} - 1
= 41% > 0
Therefore, The statement made is true.
Payback period = 2 years, Therefore the statement made is NOT true.
Answer:
Cash flows from investing activities is $653,200.
Explanation:
XYZ Company
Statement of cash flows (extract)
Proceed from sale of equipment ($80,000 - $34,000) $46,000
Purchase of vehicle $103,000
Proceed from sale of land $410,000
Proceed from sale of long-term investments in stock $94,200
Cash flows from investing activities $653,200
Answer:
The amount to be reported as the cost of the land is $ 114,200
Explanation:
Cash paid for the land = $ 98,000
Net cost of demolishing old ware house = $ 11,000 - $ 3,100 = $ 7,900
Attorney's fee = $2,000
Real estate broker's fee = $ 6,300
Total cost of the land = Cash paid for the land + Net cost of demolishing old ware house + Attorney's fee + Real estate broker's fee
= $98,000 + $ 7,900 + $2,000 + $ 6,300
= $ 114,200
Answer:
A) making zero economic profit
Explanation:
A perfectly competitive industry is where there are many firms producing homogenous goods and services. There are no barriers to entry or exit of firms. Prices are set by market forces. Buyers and sellers are price takers.
In the short run, if firms in a perfectly competitive market are earning economic profits, in the long run, new firms enter into the industry and economic profit falls to zero.
In the short run, if firms in a perfectly competitive market are earning economic loss, in the long run, firms leave the industry and economic profit goes up to zero.
I hope my answer helps you
Answer:
Sales for March, 164 * 15 = $2,460
Explanation:
According to the accrual system, the purchases and sales are recorded when they occur. When compared to the cash basis, they are only recorded when actual cash is received or paid for them.
For March the transaction of 164 units has occurred and thus this sale will be recorded.
Sales for March, 164 * 15 = $2,460
This is the revenue recorded for March under accruals, for cash this would have been 0.
Hope that helps.
