Answer:
Instructions are listed below
Explanation:
Giving the following information:
She will be paying you $39,769 at the end of this year, $79,538 at the end of next year, and $119,307 at the end of the year after that.
The interest rate is 11.7 % per year.
A) We need to use the following formula:
NPV= Cf/[(1+i)^n]
NPV= 39769/1.117^1 + 79538/1.117^2 + 119307/1.117^3
NPV= 184,958.1
B) We need to use the following formula:
FV= PV*(1+i)^n
FV= 287,929.41
Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
Answer:
C. middle of the road management
Explanation:
Leadership grid refers to a situation when a leader put too much emphasize on one part of the operation while neglecting the others. In the end, this will reduce the overall's productivity.
Example of leadership Grid:
When managers force the employees to work overly long hours every day because they believe it will bring more profit for the company. But in the end, the employees felt a burn out and many of them eventually quit or become too tired to be fully productive.
To handle leaderships grid, middle of the road management tend to be preferred.
The reason for this is that middle of the road management tend to implement balanced concern between the business and the people who work in it. This management will create a schedule that allow the employees to fulfill the needs in their personal life and career. In the long run, this will create a positive environment in the workplace and improve the productivity as a whole.
Answer:
d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.
Explanation:
The LIFO method should not be permitted to determine the net income as in this case the profits would be understated at the time when price is increased due to this it permits the company to dodge taxes as the inventory consumed in the production process also the high inventory value would be involved in the cost of sales that represent the high cost, this result in lower profits and taxes
Hence, the option d is correct
