Answer:
D : project's rate of return is less than the required rate of return.
Explanation:
Net present value (NPV) is a projects evaluation technique that analyzes the present values of predicted future revenues and expenses. In other words, NPV is the current value of future inflows minus costs. In calculating the NPV, future values are discounted with an appropriate discount rate to give the present value.
The NPV can be a positive, zero or negative. Projects with positive NPV are preferred because they are considered profitable. A negative NPV signals that the present value of the expected inflows is lower than the current value of the projected cost at the required discount rate. If the discount rate is maintained, the project is a loss-making venture.
The use of a very high discount rate may give any projects a negative NPV.
I would say these two examples show a type of performance evaluation ie analyzing what was successful and why or alternatively what was not successful and why so as to learn from the experience to continue to perform well in the future or to change poor performance to good performance.
Answer: Market segmentation
Explanation:
Market segmentation is when a market is being divided based on the customers needs. Customers with similar characteristics or needs are grouped together.
Market segmentation helps a business in reaching customers with similarbjeeds quicker and this leads to improvement in satisfaction and customer relationships. This is the method used by Fast fine foods.
B. 5
To compute stock turnover divide Sales/Average inventory
350/70= 5
Stock turnover is the amount of times inventory is sold in a given time period.
Answer:
2 times
Explanation:
The computation of accounts receivable turnover is shown below:-
Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable
where,
Net credit sales is $1,000,000
And, the Average accounts receivable is
= (Accounts receivable, beginning of year + Accounts receivable, end of year) ÷ 2
= ( $700,000 + $300,000) ÷ 2
= $500,000
Accounts receivable turnover = Net sales ÷ Average accounts receivable
= $1,000,000 ÷ $500,000
= 2 times
