Answer:
Average investment will be $24500
So option (c) will be the correct answer
Explanation:
We have given that cost of the machine = $49000
Average investment in calculating accounting rate of return is Sum of beginning and ending book value of project divided by 2.
In the present case , where straight line depreciation is used and there is no salvage value,
So the average investment will be equal to
So average investment will be $24500
So option (C) will be the correct answer
Average Investment = (Begining book value+ Ending Book Value)/2
= (49000+0)/2
= $ 24,500
<h3>From the given scenario, it can be inferred that Hearthstone Electronics and Influx Electronics share differentiation parity.
</h3>
Explanation:
A business achieves differentiation of parity when it generates the same perceived value as its rival organization. A cost leader will achieve a competitive advantage as long as its generated economic value is greater than its competitors'.
The parity of differentiation deals with value and not with pricing. Parity to differentiation happens when a business generates the same value as its rival. Price parity means paying the same prices as a rival, with pricing involved.
False. The characteristics of monopolistic competition are that there are many sellers, product differentiation and free entry and exit. The key difference between perfect competition and monopolistic is that in perfect competition firms are selling products that are identical so you can substitute one for another, while in monopolistic the products are similar but not quite the same. The demand curve for a perfectly competitive firm is horizontal since it has no market power and is a price taker, while a monopolistic firm is downward sloping with some kind of market power.
Answer:
Present Value of the project is $3,295,932
Explanation:
Present value is the discounted value of all the cash inflows and outflows of the project. It can be calculated using a required rate of return.
All the cash flows first grew at the specified growth rate each year and then discounted using required rate of return.
Working for present value of the project is attached please find it.
Answer:
1. 5.00%
2. 15.70 year
Explanation:
As per the data given in the question,
1) For computing the interest rate we need to applied the RATE formula which is shown in the attached spreadsheet
Given that
Future value = 0
Present value = -$2587.09
PMT = $950
NPER = 3 years
The formula is shown below:
= RATE(NPER;PMT;-PV;FV)
The present value comes in negative
After applying the above formula, the interest rate is 5%
2) For computing the number of years we need to use NPER i.e to be shown in the attachment below
Given that
Future Value = $920,925
Present Value = 0
PMT = -$40,000
Interest rate = 5%
The formula is shown below
= NPER(RATE;-PMT;PV;FV)
The PMT comes in negative
After applying the above formula, the nper is 15.70 years