Answer:
B
Explanation:
Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.
The formula is (cash flow)/(1+r)^i
Revenue - $750,000
Expenses - $650,000
Increase in net income - 100,000
Annual depreciation charge - 650000/5 =$130,000
Discount rate - 12%=3.605
Present cash value =( $100,000+$130000) = $230,000
Please note that depreciation is added back as it is a non cash expenses
Present value of cash flow = annual cash flow * discount rate
=$230,000*3.605 =829,150
Net present value = 829150-650000= 179,150
Answer:
Total sales tax payable:170, sales :2000
Explanation:
Sale price x sales tax rate = sales tax payable
2000 x .085 (6%+2.5%) = 170
it doesn’t say so I’m assuming that the 2,000 credit sale does NOT include the sales tax due.
Answer:
The correct statement is C. This statement is misleading because a no-load fund cannot charge more than 25 basis points of 12b-1 fees
Explanation:
THIS STATEMENT IS MISLEADING BECAUSE A NO-LOAD FUND CANNOT CHARGE MORE THAN 25 BASIS POINTS OF 12B-1 FEES.
A mutual fund is not permitted to advertise itself as a "no-load" fund if it charges 12b-1 fees of more than .25% (25 basis points) annually. 12b-1 fees are charges against net asset value that pay for the cost of soliciting new investment to the fund, and they can be used to compensate salespersons that sell the fund's shares.
Answer:
The correct answer is option D.
Explanation:
The use of plastic to produce bicycle helmets will reduce the amount of resources available to other industries that use plastic. If an industry is making helmets from plastic, they are using plastic as inputs in the production process. This will cause a reduction in the quantity of plastic available.
This plastic is used by other industries as well. They will experience a reduction in the resources available to them.
