Answer:
A
Decision: Project A should be selected.
B
NPV =$40,909.09
Explanation
A
<em>Since the two projects would achieve the same objectives, the project with the lowest initial cost should be selected.</em>
Kindly note that the $2 million already spend on project A is not a relevant cash flow because it is sunk cost. Hence, the initial cos outlay of project A will be $2 million which will be spent should the project be undertaken.
Project B on the other hand would cost $1.5 million in initial cost which is $500,000 cheaper than project A.
Decision: Project A should be selected.
B
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
Initial cost = 50,000
The NPV of the savings
NPV = 100,000× 1.1^(-1) - 50,000= 40,909.09
NPV =$40,909.09
Explanation:
Consuming vegetables is a good source of food and really required for our body to grow, develop and fight against diseases.
Answer:
$45,000
Explanation:
The computation of correct inventory is shown below:-
Unadjusted Inventory value $38,500
Add: TVs received on Dec.30,2017 $15,000
Less: TVs received recorded twice $4,600
Less : TVs shipped to Customer
FOB shipping point $10,000
Add: TVs on hand not recorded $6,100
Correct Inventory at December 31,2017 $45,000
Therefore we are not considering Point no.1 as TVs were shipped in Jan.2,2018 and sale also recorded in 2018.
Answer: D. Are Time Consuming
Explanation:
Communication, Teaching employees and involving them in policies are very useful tools in reducing employee resistance to trade but they can be quite time consuming. Having to communicate explain every change to employees, why it is to be done and how it will be of benefit will take time that could have been spent producing results.
Also involving them in key decision making can have the same temporal effect because the decisions will have to go through more people than before to be approved. The process will become more bureaucratic.
Answer:
D. Total assets increase $100,000
Explanation:
When a company buys equipment for 150,000, its asset first increases by 150,000 because it is adding an asset to its asset list which is worth 150,000 but because one third is paid in cash which is an asset, the asset column decreases by (1/3*150,000)=50,000 as 50,000 cash is leaving the company. SO total assets increase by 100,000.