Answer:
The project to accept is:
e. E
Explanation:
a) Data and Calculations:
Cost of capital = 10%
Mutually Exclusive Projects:
A B C E
Payback (years) 1 5 2 5
IRR 18% 20% 20% 12%
NPV (Millions) $40 $75 $35 $100
b) Project E should be preferred over all the other projects. It has the highest net present value (NPV) and its internal rate of return (IRR) is above the company's cost of capital. It surpasses projects A, B, and C in financial performance terms using time-value of money analysis.
Answer:
Option (B) is correct.
Explanation:
Given that,
Accounts receivables = $1,500,000
Allowance for doubtful accounts = $90,000
Expected uncollectibles = $125,000
The collection of accounts receivables after the adjustment for bad debt expense is determined by deducting the expected uncollectibles from the total amount of accounts receivables.
Accounts receivable amount expected to be collected after adjustment for bad debt expense:
= Accounts receivables - Expected uncollectibles
= $1,500,000 - $125,000
= $1,375,000
Answer:
Profit will increase by $2.3
Explanation:
Data provided in the question:
If instead of grooming 130130 dogs, he grooms 131131 dogs
Marginal cost = $65.82
Marginal revenue = $68.12
Now,
The effect on his profits of grooming 131 dogs instead of 130 dogs will be:
Change in profit = Marginal revenue - Marginal cost
or
Change in profit = $68.12 - $65.82
or
Change in profit = $2.3
Hence,
Profit will increase by $2.3
Answer:
Retained earnings-Closing = $19,900
Explanation:
Given that,
Revenues = $22,400
Operating Expenses = $15,000
Dividends = $4,500
Retained Earnings(opening) = $17,000
Net Income = Revenues - Operating expenses
= $ 22,400 - $15,000
= $7,400
Statement of Retained Earnings:
Retained earnings-Closing:
= Retained earnings -opening + Net Income - Dividends
= $17,000 + $7,400 - $4,500
= $19,900
Answer:
For the first multi choice, I think the answer is `whether or not there is enough competition to keep prices low and quality high'
For the second multi choice, I think the answer is `the market is failing to compensate those who are impacted by the sale of goods and services`
