Answer:
We see that Prog A will give an annual CF of 75%*$6000 = $4500
Prog B will give annual CF of 95%*$6000 = $5700
Disc Rate Kd = 20%
So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906
So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458
So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)
So Prog A is more effective as it gives a Positive NPV
Answer:
The price per share should be $22.5
Explanation:
The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.
We first need to calculate the earnings per share of the company.
Earnings per share = Net Income / Number of outstanding common shares
Earnings per share = 1500000 / 1000000 = $1.5 per share
Using the P/E for the industry, the price per share of Flintstone should be,
P/E = Price per share / Earnings per share
15 = Price per share / 1.5
15 * 1.5 = Price per share
Price per Share = $22.5
Answer:
price per unit times the number of units sold.
Explanation:
total revenue = total number of units sold x price per unit
the other options are incorrect because:
- the variable cost per unit times the number of units sold = total variable costs
- the change in revenue when one additional worker is hired = marginal revenue product of the additional worker
- firms seek to maximize profits, not revenue
Explanation:
noluyo anlamıyom ya döyler misiniz
Answer:
The understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
Explanation:
The relationship between the elements of inventory in a financial statement is as shown below,
Opening balance + purchases - cost of goods sold = closing balance
As such, the understatement of the ending inventory balance would result in an overstatement of the cost of goods sold. This will in turn result in an understatement of the gross and net profits for the year in the p/l.
