Answer:
yes, because the IRR is 12.74 percent
Explanation:
given data
present value = $1.46 million
first year cash inflows c1 = $223,000
next three years cash inflows c2,c3,c4 = $600,000
rate of return minimum = 12 %
to find out
firm purchase this particular machine based on its IRR
solution
we consider here IRR is = r
we apply here present value formula that is express as
present value = 
.......1
put here value
$1.46 million = 
solve it we get
r = 12.74%
so here IRR = 12.74% is higher than the rate of return minimum = 12%
so it will create a positive net present value of cash inflows
and project will accepted and firm purchase the machine
so we can say yes, because the IRR is 12.74 percent
Answer:
Standards or criteria that will be used
Explanation:
A project charter is an informal contract between a project team and the project sponsor. The project charter shows a detailed plan of each aspect of a project; from scope to objectives, etc as well as grants the project team the power to create a project plan.
A project charter helps the project team to develop an understanding of the project to be undertaken, thereby enhancing team performance. Before a project charter is signed between both parties, all risks must have been eliminated.
When acceptance criteria factors are added to the schedule of a project charter, it helps the project team to know who will be judging the quality of their work as well as the standard that the judge will be using.
I hope this helps.
Complete question:
amber is in charge of preparing an annual budget for her company. as part of the budgeting process, she must estimate COGS and ending inventory. which of the following statements is correct regarding the use of the gross profit method
amber must take a physical inventory to determine ending inventory and COGS
amber may utilize the gross profit method, but must also take a physical inventory
amber may utilize the gross profit method to estimate ending inventory and COGS
Answer:
Amber may utilize the gross profit method to estimate ending inventory and COGS
Explanation:
The gross profit method is a strategy used to measure the value at the end of the product. The method may be used with monthly accounting statements where a physical warehouse is not feasible.
(However, it is not a substitution for an actual physical inventory.) It is often used to measure the volume of lost products incurred by burglary, accident or other disasters.
For example, if a business buys products of $80 and sells them for $100, the gross profit is $20.
Answer:
<u>a. $2,673 over applied</u>
Explanation:
a. Remember, it was mentioned that the company's predetermined overhead rate is $81 per hour of bandsaw use, although the actual hours of bandsaw use 153.
Calculating the results we have $2,673 over applied (actual value= $81*153-$15,066).
b. In preparing an income statement all underapplied overhead would be recorded as a prepaid expense on the balance sheet and then corrected through increasing cost of goods sold at the end of the time period.
Answer:
Cognitive dissonance
Explanation:
Cognitive dissonance is a concept of social psychology and is described as the discomfort which is felt by a person who is having conflict in values and ideas. The people in this state feel guilt, embarrassment and anger. There is a motivational drive in humans to reduce the dissonance.
Leon Festinger developed theory of cognitive dissonance to predict and explain the peoples reaction to various situations. This theory states that people have prejudice to get agreement between what they expect and the reality.
