Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Evlaute Expected value of sales volume?
(17500 × 0·3) + (20000 × 0·6) + (22500 × 0·1) = 19500 units
Expected NPV = (((19500 × 1·35) - 10000) × 3·605) - 50000 = $8852
While the expected net present value is positive the project appears to be acceptable. From earlier examination we know that the NPV is positive at 20000 per year and the NPV will therefore as well be positive at 22500 units per year. The NPV of the nastiest case is
(((17500 × 1·35) - 10000) × 3·605) - 50000 = ($882)
The NPV of the finest case is
(((22500 × 1·35) - 10000) × 3·605) - 50000 = $23452
There is therefore a 30% chance that the project will produce a negative NPV a fact not revealed by considering the expected net present value alone. The expected net present value isn't a value that is likely to take place in practice it is perhaps more useful to know that there is a 30% chance that the project will produce a negative NPV (or a 70% chance of a positive NPV) since this may perhaps represent an unacceptable level of risk as far as the managers of Umunat plc are concerned. It can thus be argued that assigning probabilities to expected economic states or sales volumes has produced useful information that is able to help the managers of Umunat to make better investment decisions. The complexity with this approach is that probability estimates of project variables or future economic states are probable to carry a high degree of uncertainty and subjectivity.
Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and
BALANCE SHEET Grouping of items: Items in the Balance Sheet should be grouped under appropriate headings. In particular, a trust operating the provisions of the Trustee Act
Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000
Q. Flexibility in Debt finance? Debt finance is more elastic than equity in that various amounts can be borrowed at a fixed or floating interest rate and for a range of maturit
In May of 2010, a business placed in service $35,000 of property eligible for limited expensing under §179. Line 13 of Form 4562 for 2009 was $15,000. Net income before cost recove
Q. Show example of Internal rate of return? IRR (Internal rate of return) is a discounted cash flow investment appraisal method that calculates the discount rate which causes th
Which of the following procedures involves transferring amounts recorded in the general journal to ledger accounts? Answer a. preparing a tria
BANKRUPTCY ACCOUNTS FOR INDIVIDUALS AND PARTNERSHIPS These include a statement of affairs and deficiency account. A statement of affairs takes the following form: v\:*
Q. Define Return on capital employed? Return on capital employed (ROCE) is as well called accounting rate of return. Distinctly IRR ROCE uses average annual accounting profit b
State the term Reliability- Accounting Information Accounting must be free from significant error or bias. It must be capable of being relied upon by managers to represent
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd