Answer:
$20 million
Explanation:
The computation of the ending inventory if FIFO is used
= LIFO reserve + Ending inventory based on LIFO inventory
= $3 million + $17 million
= $20 million
We simply added the LIFO reserve and LIFO ending inventory so that FIFO ending inventory can be computed. Hence, we take all the items for the computation part.
Answer:
r - 2%
Explanation:
Nominal Interest rate = real interest rate plus expected inflation rate
that is,
Nominal Interest rate = real interest rate + expected inflation rate
let the real interest rate be r
since inflation is reduced, expected inflation rate is in the negative that is - 2%
therefore,
Nominal Interest rate = r + (- 2%)
= r - 2%
<span>Mean absolute deviation, standard deviation and variance are all measures of the variability of a data set. The absolute and mean absolute deviation display the quantity of deviation or variation that arises about the mean score. To discover the total variability in our group of data simply add up the deviation of each score from the mean. The average deviation of a score can then be considered by dividing the total by the number of scores. To calculate the deviation of a score from the mean rest on on choice of statistic whether by means of absolute deviation, variance or standard deviation.</span>
Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.
