Answer:
Cash in-flow in the last year.
Explanation:
Salvage value, also known as residual value, is the amount that you receive from sale of Property, Plant, and Equipment at the end of useful life. When computing the NPV of any project, we consider all the relevant cash flows of that project. Since, $45,000 will be received when project ends from sale of Fixed asset, so this figure will be treated as Cash in-flow and discounted.
Answer:
Paying attention to the trends that might impact your future career is called Futurecasting.
Answer: $61,328.15
Explanation:
The amount paid is per year so this is an annuity. It will begin 11 years from now so one should find the present value in that year:
Present Value of annuity = Annuity * ( 1 - ( 1 + rate) ^ - no. of periods) / rate
= 6,260 * ( 1 - ( 1 + 3%) ⁻¹⁷) / 3%
= $82,419.90
That is the present value if the annuity starts 11 years from now which means that it is the present value 10 years from now (ordinary annuities are paid end of period).
You need to discount to current period:
= 82,419.90 / ( 1 + 3%)¹⁰
= $61,328.15
Answer: $475,000
Explanation:
75% of both the research and development and selling expenses were traceable to Askin.
= 75% * (1,170,000 + 130,000)
= $975,000
Profit before taxes for Askin = Askin Gross Profit - Share of expenses
= 1,400,000 - 975,000
= $475,000
Answer:
1,560,000 BEP in dollars
Explanation:
increase of 10% variable cost
100 + 10% of 100 = 110
Increase in fixed cost for 4%
840,000 + 4% of 840,000 = 873,600
220 - 110 = 140 new contribution margin
New contribution margin ratio
140/250 = 0.56
New break even point
873,600/ 0.56 = 1,560,000 BEP in dollars
