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ArbitrLikvidat [17]
3 years ago
14

Your company is trying to decide which of the two following devices should be selected.

Business
1 answer:
jeyben [28]3 years ago
7 0

Answer:

a) Find the attached jpeg file for the cash flow diagram

b) The company should purchase Device B.

Explanation:

a) Draw cash flow diagram for each option

A project cash flow diagram is a tool that is used to present a visual representation of the cost of a project and cash it is expected to generate over a specified period of time. On the diagram, x-axis represents the year,  and y-axis represents cash out flows and/or inflows.

Note: See the attached jpeg for the cash flow diagram.

b) If interest rate is 7%, which device should your company purchase?

To determine this, we compare the Net Present Value (NPV) of the 2 devices.

Note: See the attached excel file for the calculation of the NPVs of the two devices.

From the attached excel file, we have:

NPV of Device A = $230

NPV of Device B = $262

Decision: Since $262 NPV of Device B is greater than the $230 NPV of Device A, <u>the company should purchase Device B.</u>

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Explanation:

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Inventory records for Marvin Company revealed the following:
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Answer: $14371.6

Explanation:

Given that,

According to FIFO method,

Marvin sold = 1,900 units of inventory during the month

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on Mar. 10

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                                         = $14371.6

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3 years ago
When deciding how to deal with negative feelings, why should you evaluate the causes of your issue??
vampirchik [111]

<span>You might be able to cope with future issues more easily this the correct answer. : )</span>
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4 years ago
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