Answer:
Initial outlay = $250,000
Annual cash inflow = 25% x $250,000 = $62,500 per annum
Payback period = <u>Initial outlay</u>
Annual cash inflow
= <u>$250,000</u>
$62,500
= 4 years
Explanation:
In this respect, there is need to calculate the annual cash inflow, which is 25% of initial outlay. Then, we will divide the initial outlay by the annual cashflow. This gives the payback period of the machine.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
For the year, the Big Bart line has a net loss of $3,800 from sales $201,000, variable costs $175,000, and fixed costs $29,800. If the Big Bart line is eliminated, $19,700 of fixed costs will remain.
Effect on income= -Unavoidable fixed costs - net loss= -15,900
Answer:
$95,000 Capital Gain
Explanation:
First, note that during liquidation, the fair market value should be used for the valuation of assets
<u>Step 1: Calculate the Net Assets taken over at Fair Market Value</u>
Total Assets at the Market Value = $340,000
Subtact: Liabilities (land Mortgage) = ($40,000)
The Net Asset at Fair market value = $300,000
Step 2: Calculate the Capital Gain or loss from the Liquidation
fair Value of Net Assets Taken Over = $300,000 (from step 1)
Subtract: The Common stock of Small Com. = ($205,000)
The Capital Gain = $95,000
Answer:
Customer Relationship Management (CRM)
Explanation:
The customer relationship management deals with managing the relationship with the customers so that the company satisfies its customer to a large extent. The motive of CRM is to gain maximum customer satisfaction so that it can retain its customers for longer time. It can be done in the following ways
1. Deliver the goods at pre-decided time and location
2. Providing them excellent services and offering them great discounts so that the company can achieve its sales target which helps the company to achieve its goals in a specified time period.
