Answer:
NPV =$ 60,311.80
Explanation:
<em>The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.</em>
NPV = PV of cash inflow - PV of cash outflow
We can set out the cash flows of the project using the table below:
0 1 2 3
Operating cash flow 136,000 136,000 136,000
Initial cost (274,000)
Working capital (61,000 ) 61,000
Salvage value <u> </u> <u> </u> <u> </u> 1<u>5000 </u>
Net cashflow <u> (335,000) 136,000 136,000 212,000.</u>
PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)
= 395,311.80
NPV =395,311.80 -335,000
=$ 60,311.80
The Journal entry which Nicholson company will prepare on June 2 will be like when goods are returned the reverse entry is made which is
Accounts Payable A/c Dr. $480
Purchase Return / Inventory A/c Cr. $480
A journal entry is an act of recording any transaction, whether it is economic or not. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.
Accounting journal entries are transferred from the journals and posted to the general ledger in order to record financial transactions in the accounting system. Modern accounting software handles the majority of this process automatically, but it's crucial to understand what's going on since there are instances when manual entries will need to be made to adjust or correct account balances at the conclusion of an accounting month.
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Answer:PRODUCT COSTS include; (1) Soap and paper towels used by factory workers in a shift(2) Heat, water and power consumed in the factory(3) Materials used for boxing products for shipments overseas (4) Workers compensation insurance for factory employees (5) cost of packaging the company's products(6) Rent on equipment used in the factory (7) Lubricants used for machine maintenance (8) Factory supervisors salaries.
While PERIOD COSTS include (1) Depreciation on sales persons cars (2) Salaries of personnel who work in the finished goods warehouse (3) Advertising costs (4) depreciation on chairs and tables in the factory lunch room (5) Wages of the receptionist in the administrative offices (6) Cost of leasing the corporate jet used by the company's executives (7) Cost of renting rooms at Florida Resort for the annual sales conference.
Explanation:
Product costs are those direct costs incurred in the production of a commodity for example, direct labour, direct materials etc while Period costs is any cost associated with passage of time. It is incurred whether production is in process or not.
Answer:
a. supply of oranges will increase and the price of oranges will fall.
Explanation:
The crop will have impact on the producer of oranges, their field will have a better yields so, more orange supply. The supplier fixed cost will be distribute among more orange thus, her average cost will be lower.
If the cost is lower, then the price will decrease as well. This will generate an equilibrium cost at more quantity with a lower price.
