Answer:
For 8,500 units, proposal A provides a higher income ($3,000).
Explanation:
Giving the following information:
Proposal A:
Fixed cost= $50,000
Unitary cost= $12
Proposal B:
Fixed cost= $70,000
Unitary cost= $10
<u>We need to choose the proposal with the higher income if 8,500 units are produced.</u>
Proposal A:
Net income= 8,500*(20 - 12) - 50,000
Net income= $18,000
Proposal B:
Net income= 8,500*(20 - 10) - 70,000
Net income= $15,000
For 8,500 units, proposal A provides a higher income ($3,000).
Answer: A
Explanation: Using a financial calculator to solve the problem :
For project A with a discount rate of 11.7%
Outlay = 80,000
CF for year 1 = 34000
CF for year 2 = 34000
CF for year 3 = 34000
I = 11.7 %
NPV = 2085
For project A with a discount rate of 13.5%
Outlay = 80,000
CF for year 1 = 34000
CF for year 2 = 34000
CF for year 3 = 34000
I = 13.5%
NPV = -397.5
For project B with a discount rate of 11.7%
Outlay = 80,000
CF for year 1 = 0
CF for year 2 = 0
CF for year 3 = 114,000
NPV = 1798
For project B with a discount rate of 13.5%
Outlay = 80,000
CF for year 1 = 0
CF for year 2 = 0
CF for year 3 = 114,000
NPV = -2,032
from the above calculations, project A has a better NPV when discount rate is 11.7% and 13.5%
Answer:
The correct answer is letter "C": cash sales.
Explanation:
Credit card payments using processing systems such as <em>Visa</em> or <em>MasterCard </em>are considered as<em> cash sales</em> since they allow consumers to purchase goods or services instantly. For accounting purposes, the transaction is recorded as a debit to cash and a credit to sales and the fees associated are registered as expenses.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The Xu Corporation uses a periodic inventory system.
The company has a beginning inventory of 1,250 units at $15 each on January 1.
Xu purchases 1,500 units at $14 each in February and 700 units at $16 each in March.
Xu sells 650 units during the quarter.
Average price= (15 + 14 + 16)/3= 15
Cost of goods sold= 15*650units= $9,750
Answer:
C. 1.75 years.
Explanation:
The payback period is the amount of time required for cash inflows generated by a project to offset its initial cash outflow.
