Answer:
. B). total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory.
Explanation:
The budget period can be regarded as
period of time whereby one has the authority to spend the awarded funds in a way that meet the matching as well as the cost-sharing requirement. It should be noted that the amount of materials to be purchased during the budget period is equal to budgeted total production needs plus units in the ending materials inventory minus the units in the beginning materials inventory.
Answer:
B) The textbooks are placed in a common area of the department so students can borrow and return them as needed.
Explanation:
To avoid a new tragedy of the commons from occurring in the statistics class, each student that receives a book should be responsible for taking good care of it.
If the books are simply placed in a common area, anyone can come and take a book home and never return it or return it in a very bad shape.
Answer:
Simple Payback period is 2.52 years.
Discounted Payback period is 2.97 years
Explanation:
Payback period is the number of years that a project takes to recover the project's initial investment.
Simple Payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
Payback period = 550/550 + 630/630 + (1500-550-630)/620 = 2.52 years
Payback period = Approximately 2.52 years
In simple term it will take 2.52 years to recover the initial investment.
Discounted payback
Project A
Time: 0 1 2 3 4 5
Cash flow –$1,500 $550 $630 $620 $400 $200
PV @ 9% –$1,500 $505 $530 $479 $283 $130
Payback period = 505/505 + 530/530 + (1500-505-530)/479 = 2.97 years
Payback period = Approximately 2.97 years
It will take about 2.97 years to recover the initial investment of $1,500 using discount rate of 9%
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