I took the business class last year but if I remember correctly Net profit is more important to consider because even if your net profit is 0, your company is still a success.
The budget process makes fiscal policy difficult to implement because
<span>---The budget process begins a year and a half before the budget is implemented, and this will make it difficult to know what type of fiscal policy will be needed because it requires us to predict the problem and opportunities that arise during the operation.
---Many budget decisions are made for political reasons , because many politicians was appointed by interest groups that controlled by big companies.
---Nearly two-thirds of the budget is mandated by federal programs and cannot be easily changed, even if it could be changed, the cost could outweihgt the benefit.</span>
Answer:
The lease would be a better option as their net preset worth is lower than purcahse the machine and carry their cost.
Explanation:
<u>Option A purchase</u>
F0 -160,000
operating cost 5000 per year we solve for the present value of an annuity
C 5,000.00
time 10
rate 0.12
PV -$28,251.1151
PV of the salvage value
Maturity $10,000.0000
time 10.00
rate 0.12000
PV 3,219.7324
<u><em>present worth</em></u>
-160,000 - 28,251.11 + 3,219.73 = -185.031,38
<u>Option B Lease</u>
10 payment beginning immediatly of $25,000
Therefore, it is an annuity-due
C 25,000.00
time 10
rate 0.12
PV -$158,206.2448
94+.12(x)=130
130-94= 36
.12x=36
36/.12= 300
300 miles
Plug back in to check
300 x .12=36
36+94= 130
Answer:
d. 108 days
Explanation:
Average Inventory = (Beginning balance + Ending balance) / 2
Average Inventory = ($139,000 + $158,000) / 2
Average Inventory = $297,000 / 2
Average Inventory = $148,500
Inventory Turnover ratio = Cost of goods sold / Average Inventory
Inventory Turnover ratio = $501,000 / $148,500
Inventory Turnover ratio = 3.37 times
Average days to sell inventory = Days in a year / Inventory Turnover ratio
Average days to sell inventory = 365 days / 3.37 times
Average days to sell inventory = 108.31 days
