Terminal cash flow = $281,a hundred + $60,000 = $341,one hundred.
Terminal cash flows are cash flows at the end of the challenge after all taxes are deducted. In different phrases, terminal coins flows are the net amount made by the organization after disposing of the asset and necessary amounts are paid. these are calculated after the disposal of assets and all different amounts are paid (fees, taxes, and many others.).
The calculation of NPV encompasses many economic topics in a single component: cash flows, the time fee of cash, the cut price rate over the period of the undertaking (generally the weighted common fee of capital (WAAC)), terminal value, and salvage fee.
For the terminal cost to be significant it should be discounted to the existing use of a discount fee. The terminal cost is added to the prevailing value of an asset's cash flows within the years preceding it to calculate the full gift cost.
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<span>What
you give up for taking some action is called the opportunity cost.
Average total cost is falling when
marginal cost is below it and rising when marginal cost is above it.
A cost that does not depend on the quantity produced is a fixed cost.
In the
ice-cream industry in the short run, variable cost includes the cost of cream and
sugar but not the cost of the factory.
Profits equal total revenue minus
total cost.
The cost of producing an extra unit of output is the marginal cost.</span>
Answer:
The answer is A.
Explanation:
Other things remaining equal, the law of demand says that the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded.
Suppose a good is being sold at $5 and 20 quantities are being demanded, if the price increases to $6, lesser of that goods should be demanded
Answer:
Explanation:
The journal entries are shown below:
a. Short term notes receivable A/c Dr $5,300
To Service revenue A/c $5,300
(Being the service is provided based on the notes receivable)
b. Short term notes receivable A/c Dr $9,300
To Cash A/c $9,300
(Being cash is paid)
c. Short term notes receivable A/c Dr $4,300
To Account receivable A/c $4,300
(Being 3-month note receivable is accepted which is signed by the customer)