Answer: 130 days
Explanation:
The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.
It is calculated with the following formula,
= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding
Where,
Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales
Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,
Days of Payables Outstanding is the time it took the company to pay for the goods it bought
Plugging in the figures we have,
= 100 + 60 - 30
= 130 days
The firm's cash conversion cycle is 130 days.
D. office of student federal aid
Answer:
Missing out on the benefits I get from working out using exercise equipment in my garage.
Explanation:
When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice. The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen." Since Choice B is the next best choice to hiking, missing out on the benefits of working out will be my opportunity cost.
Answer:
79,000 tons
Explanation:
When you use the weighted average method for determining equivalent units, the total number of equivalent units = units completed and transferred out + equivalent units in ending inventory.
In this case, since the materials are added at the beginning of the production process, all the units are 100% complete regarding direct materials.
Answer:
Project A
Years Cashflows Discount factor Present values
0 250,000 1 -250,000
1-10 45,100 6.144 277,094.40
Sum of all present value=NPV=27,094.40
IRR (by using trial and error method) = 12.4696%
Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144
Project B
Years Cashflows Discount factor Present values
0 (350,000) 1 (350,000)
1 72,500 0.91 65,975
2 65,500 0.83 54,365
3 73,800 0.75 55,350
4 71,500 0.68 48,620
5 69,800 0.62 43,276
6 75,500 0.56 42,280
7 31,000 0.51 15,810
8 47,500 0.47 22,325
9 55,500 0.42 23,310
10 29,200 0.38 11,096
Sum of all present values=NPV=32,407
IRR(by using trial and error method=12.4186%
On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.
b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure
