Answer:
B) Accept Project A and reject Project B.
Explanation:
We use excel or a spreadsheet to calculate this ratio.
See document attached.
Cash flow will solve this problem.
At moment 0 we have the investment cost or initial cost, in this case $125,000 or $135,000. From period 1 to period 3, we have different incomes. Then, we calculate the Net cash flow that is the difference between benefits and cost.
We use all the result (positive and negative) in Net cash flow to get the IRR.
<u>Project A</u>
Internal Rate of Return (IRR) 18,86%
<u>Project B</u>
Internal Rate of Return (IRR) 13,78%
So we should accept Project A and reject Project B, because in project A the IRR is bigger of required return ( 16%), we reject project B because the IRR is smaller.
Answer:
162.5 phones
Explanation:
The Avon Barksdale's operation uses 500 cell phones per week. The order quantity is 125 phones which takes 2 weeks to to deliver. To calculate the average inventory for Avon Barksdale we will subtract reorder quantity from the weekly use of cell phones.
500 per week * 2 weeks = 1,000 cell phones
he reorder point is 1,100 phones.
1,100 - 1,000 = 100 cell phones
The lead time is 2 weeks for 125 phones delivery
125 / 2 weeks = 62.5
62.5 + 100 = 162.5 phones
Answer:
d. a., b., and c.
Explanation:
Reduction in pay (a) Marginal tax (b) Reduction in tax (c = a x b)
A. $5000 0.28 $1,400
B. $4000 0.15 $600
C. $6000 0.35 $2100
Reduction in After-tax Income (d = a - c)
A. $3,600
B. $3,400
C. $3,900
this means that all the above a, b, and c options are correct because in all the three cases, the reduction in after-tax pay of the employee will be less than $4000 value of the nontaxable insurance premium to be paid by the employer which would ultimately benefit the employee.
Answer:
Option "E" is the correct answer to the following question.
Explanation:
It is believed that fashion can change in a small interval of time. Fashion related.
goods or merchandise may be the change in a small interval.
Fashion is completely based on the thinking of human, with the changing of human thinking, fashion also keeps changing.
Therefore, Fashion merchandise's demand depends on short period of time.
Answer:
In Tolan's 2014 income statement, the royalty revenue should be <u>$103,000.</u>
Explanation:
In Tolan's 2014 income statement the royalty revenue will be royalty for January to June received in September 2014, and for July to December 2014 in March 2015
In the year 2014 received in September 2014 = $98,500 which is for the period Jan to June 2014
Royalty = 15% of sales
Sales estimate for July to December 2014 = $30,000
Royalty = $30,000 X 15% = $4,500
Total royalty income for 2014 = $98,500 received + $4,500 to be received in 2015 Mar 15 = $103,000
In Tolan's 2014 income statement, the royalty revenue should be $103,000.
