Answer:
b. project A; because its NPV is about $4,900 more than the NPV of project B
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Mutually exclusive projects are those projects where only one project is selected for investment after analysis. NPV is the most preferred method in the evaluation of mutually exclusive projects for capital budgeting. That project is accepted which has higher positive NPV.
Net present value of Project A =$13,157.24
Net present value of Project A =$8,256.98
Difference = $13,157.24 - $8,256.98 = $4,900.26
Net Present value working is made in MS Excel File which is attached with this answer, please find it.
Answer:
May's sales that are expected to be noncollectable are $7500.
Explanation:
The total collections from a months's credit sales is expected to be as follows,
35% in the month of sale
54% in the following month
6% in the second month after sale
The remaining is expected to be noncollectable.
The credit sales for a month are equal to 100%.
The percentage of noncollectable sales is = 100 - (35 + 54 + 6) = 5%
Thus, 5% of each month's sale is expected to be noncollectable.
May's sales that are expected to be noncollectable are,
Noncollectable Sales-May = 150000 * 0.05 = $7500
Answer:
Assets = Liabilities + Owners' Equity
Explanation:
The reason is that it is the basic accounting equation that forms the basics of the double entry. It is main equation from which all the Gernally Accepted Accounting Principles and International Accounting Standards had originated. This helps us to understand a big picture of an entity either it is by record keeping, financial statement analysis, uncovering frauds, provision of system of check and balance and many more. This is the reason why the basic accounting equation has immense importance in Sarbanes Oxley Act, Companies Act, etc.
Answer:
Estimated manufacturing overhead rate= $50 per machine hour
Explanation:
Giving the following information:
The machining department uses machine hours as its allocation base and has 80,000 machine hours. The machining department is assigned overhead costs of $4,000,000.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= 4000000/80000= $50 per machine hour
Answer:
ShareHolders.
Explanation:
A share holder is the ultimate owner of any company who has invested his share in return of the profits earned.
Hence, this form of social responsibility by Pepsi will portray a positive image of Pepsi in the market and will ultimately help the shareholders in the form of increased revenue due to more sales and high profits.
I hope this helps. Best of Luck.
