Answer:
NPV = $5,926.226
Explanation:
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite.
NPV = PV of cash inflows - PV of cash outflows
PV of annual savings= A× (1- (1+r)^(-n))/r
r- discount rate- 11%, n- number of years- 5, A- annual savings
= 10,000 × (1- 1.11)^(-5) )/0.11 = 36,958.97
PV of scrap value = F × (1+r)^(-n)
r- discount rate- 11%, n- number of years- 5, F- salvage value - 5,000
5,000× (1.11)^(-5)= 2,967.256
NPV = 36,958.97018 + 2,967.256 - 34,000
= 5,926.226
NPV = $5,926.226
Answer:
a. units completed by a production department in the period.
Explanation:
An equivalent unit of production -
It is the amount of work which is done by the manufactures on the units of the output , which are completed over the specified time period .
It includes the fully completed units as well as the partially completed units .
These equivalent units are useful for the production cost report of the company .
Hence , the correct statement for equivalent unit of production is , ( a ) .
Answer: Joint Venture
Explanation:
Joint Venture is a form of business whereby two parties will have to come together and utilize their resources and put their skills together as well in order to achieve a common goal.
Zen Corp, an Australian company, and Pluto Inc, an American company, entered into a one-time contract to build an elevated expressway in Florida. The contract was for a period of five years and both companies were equally liable under their agreement. This is a form of joint venture.
Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
<u>First, we need to calculate the current contribution margin:</u>
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
<u>Now, the new contribution margin:</u>
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
