Answer: E - The technology which the company is considering adopting was recently developed and has not yet been successfully implemented in a real business context.
Explanation: the company would be able to recover the cost of adoption of the new technology . This strengthens the argument that the upgrade should take place.
The new technology would improve cost of production and efficiency. This strengthens the argument that the upgrade takes place.
Because the upgrade hasn't been successfully tested, it might have an unintended negative impact which would erode all the benefits of the upgrade
Answer:
the artist should make the elegant version since the expected profits are higher
Explanation:
elegant version:
expected revenue = (400 x $150 x 40%) + (350 x $110 x 60%) = $47,100
expected profits = $47,100 - $30,000 = <u>$17,100</u>
deluxe version:
expected revenue = (500 x $110 x 40%) + (450 x $70 x 60%) = $47,100
expected profits = $42,250 - $30,000 = $12,250
Answer:
The answer is below
Explanation:
The indicators that are used to carry out capital budgeting for different ventures of a company are:
1. Profitability of the project
2. Profitability for equity investors
3. Financial sustainability of the project
These essential indicators assist the firms to evaluate a future project's lifetime cash inflows and outflows to know whether the probable returns would be yielded and satisfy an adequate target goal.
Answer:
Option A. $15,400
Explanation:
The net deduction allowed as an charitable contributions are as under:
$
1. ABC Cop. stock
Cost $6000
FMV <u>$22000</u> $16000
2. Personal Clothing Items
Cost $1000
FMV <u>$400 </u> <u> ($600) </u>
Net Deduction $15,400
The amount that qualifies as charitable contribution for the year is $15400.
