Answer:
Purchase Decision Process
Explanation:
The purchase decision process is the one through which the a buyer makes his decision of buying a certain product.
This consumer buying process has five step which they use to make their decision, are following;
- Need or Problem Recognition.
- Information Search.
- Evaluation of Alternatives.
- Purchase Decision.
- Post-Purchase Evaluation.
I hope the answer is helpful.
Thanks for asking.
You would have to divide the number of bushels by the price.
Answer:
$21.859
Explanation:
According to the scenario, computation of the given data are as follow:-
Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period
1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1
= 1.20 ÷ 1.12
= 1.071
2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2
= $1 × (1.44) ÷ 1.254
= $1.148
3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3
= $1 × (1.44) × (1.10) ÷ 1.405
= $1.127
4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4
= $1 × (1.44) × (1.21) ÷ 1.574
= $1.107
5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5
= $1 × (1.44) × (1.331) ÷ 1.762
= $1.088
6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]
= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) × (1.762)
= $2.012 ÷ 0.1233
= $16.318
Now
Share’s Current Value is
= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318
= $21.859
We simply applied the above formula
Answer:
25%
Explanation:
the margin of safety is the percent of sales which the company is above the break even point.
We solve for the break even point:
BEP = 150,000
We solve for the margin of safety:
$ 200,000 - $ 150,000 = $ 50,000
Now we compare against our sales:
$ 50,000 / $ 200,000 = 0.25
Answer:
A. $22,000 decrease
Explanation:
The reason behind Granfield Company interested in predicting the increase or decrease in net income when they purchase new machinery by selling an old one is because you have the Cash coming through so that they don't run out of money. As per Generally Accepted Accounting Principles (GAAP) the other name of Profits is Net Income. The company may not have Cash in the bank but their Net Income may be in millions. So, when Companies like Granfield when usually invests are usually concerned about their investments that weather they will be profitable or not. In this instance of Granfield Company, they predict that by acquiring the new machinery they will save on manufacturing overhead by $19,000 over 4 years which accumulates to $76,000.
Annual Savings = $19,000 x 4 = $76,000
We are told to ignore the time value of money here so if the proceeds from previous machinery are $22,000, then add the proceeds from machinery and annual savings and we get a total of $98,000
Annual Savings $76,000
Add: Proceeds from Sale of Machine $22,000
Total Savings $98,000
To find the increase or decrease in net income or the effect of purchase of new machinery and disposal of old machinery on net income can be calculated as follows;
Total Savings $98,000
Less: Purchase of New Machinery $120,000
Decrease in Net Income $22,000
Hence the Net Income will decrease by $22,000 which means there will be a decrease in retained earnings and stockholders' equity.
Option A is the Correct answer.
