Answer:
Option "B" is the correct answer to the following question.
Explanation:
Price-setters is a community or individual, who set a fair price for a particular commodity or product, these types of Individual or community has a higher quality of goods or product that gave him the ability to set his prices.
Other firms are called price taker who depend on the market price
Price-setters firms use a pricing approach.
Answer:
option C is correct CPI in Kansas City is 125 and in Dallas is 150.
Explanation:
given data
Kansas City pays = $50,000
Dallas that pays = $60,000
solution
we know that CPI base year is always = 100
first we get here real salary value in Kansas City that is express as
Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1
put her value we get
Real Value = $50,000 × 
Real Value = $40000
and now we get here real salary value in Dallas that is express as
Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2
put her value we get
Real Value = $60,000 × 
Real Value = $40000
so now we can see that both value is same in both city with CPI Kansas City = 125 and CPI Dallas = 150
so here correct option is c. 125 in Kansas City and 150 in Dallas
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
Answer:
(A) in the summary of significant accounting policies.
Explanation:
It has the company's financial statements and also describes the key policies that are being followed by the accounting department. This policy summary is mandated by the accounting framework like IFRS or GAAP.
Answer:
First year depreciation expense is $2,250
Explanation:
Total depreciation expense is given by:
Price - Salvage Value = 40,000 - 4,000 = 36,000
That $36,000 depreciation expense would be spread out for 200,000 miles.
So for the first year in which the truck is used 12,500 miles, the depreciation expense will be
Question answered.
Note:
