Answer:
They should invest $5,119,047.619 today.
Explanation:
The trust fund will pay a fixed amount forever thus it is a perpetuity. The value of perpetuity or Price of perpetuity is the amount that the perpetuity is worth in today's terms based on the cash flows it will generate in future.
The formula for the value or price of perpetuity is,
P0 or V = Cash Flow / r
Thus,
P0 or V = 215000 / 0.04 = $5,119,047.619
Answer:
The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.
Explanation:
Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.
Cash collection fomular is therefore;
Cash collection = Sales on account + Cash sales + Decrease in accounts receivable
=$2,100,000 +$1,110,000 + $915,000
=$4,125,000
Answer:
$88,000
Explanation:
Jill's original house value = $175,000 house cost + $7,000 closing costs + $75,000 improvements = $257,000
Jill's revenue from house sale = $375,000 selling price - $30,000 sale cost
= $345,000
Jill's capital gain = $345,000 sales revenue - $257,000 house original value
= $88,000
Answer:
D) inventory
Explanation:
Inventory: Inventory is the stock of the company. It passed through various cycles i.e. raw material, work in progress, finished goods. When the cycle is finished then the product is ready to sell in the market.
Moreover, the recording of the stock is done based on the cost or market value whichever is lower.
In the given question, operation management uses the storage facility. So, the storage facility is used to store the inventory. Here, the storage facility means the warehouse in which the company products are kept for safety measurement.
Thus, all other options are incorrect except D option
Answer:
The answer is below
Explanation:
EVM uses Cost, Scope and time to characterize the achievement of a task. The expense of undertaking is the measure of cash spent to convey the task. The cutoff time for conveyance is the hour of the venture and degree is the characteristics, highlights and advantages of the task as wanted by the client.
The specialty of adjusting these three limitations characterizes the execution achievement and nature of the venture. Any one factor has sway on the other. For instance on the off chance that the expense of the venture is diminished or expanded, at that point either a portion of the highlights of the undertaking will be diminished or expanded accordingly bringing about decline or increment of advantages to the client. The decline in cost in this manner influences scope which thus impacts the hour of the undertaking. With each element or advantage expanded or diminished, the time will likewise increment or decline. Not just that even the enlisting of individual will influence these three requirements. Increment in cost may permit decline in the extension and decrease of groups at work, in this way increment in time.
EVM investigates just three parts of time, cost and scope and doesn't trouble much about the chances, dangers and bottlenecks, quality or significance of different task groups. Cruel the truth is that venture administrators consider just expense and time as the fundamental requirements and extension has shocked sheet. This is basically because of the way that undertaking administrators can best gauge two imperatives one after another. The triple imperatives will make the best parity gave that effect of any adjustment in these three limitations is surely known and conveyed to the partners with the goal that quality which should be prime target can be acquired.
The merits and demerits of EVM are attached