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Q. What do you mean by Inflation?
Predicts of future inflation of sales prices and variable costs should be prepared Therefore that a nominal NPV evaluation is able to be undertaken. This evaluation must employ a nominal after tax cost of capital it isn't stated whether the 12% after-tax cost of capital is in nominal or real terms. Sales price is presumed to be constant in real terms but in practice substitute products are likely to occur leading to downward pressure on sales price and sales volumes.
Constant fixed costs
The supposition of constant fixed costs should be verified as being acceptable. Sales volumes are predict to increase by 40% and this increase may result in an increase in incremental fixed costs.
Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid
Q. Describe Passive Income? Passive Income - Includes income derived from such sources like dividends, royalties, interest, rents, amounts received from personal service contra
Calculate Economic profit: Suppose a monopolistically competitive firm is facing the following demand and cost information. a. If the firm is a profit maximizer, how
Application Information The application must include information as to: The full name of the deceased; The death and place of his death; Whether or not the decease
summary of key financial ratios with formula
Proposals A, B, C, D, E, and F are being considered with money flows over 10 years. Proposal (A and D) are mutually exclusive, (C and F) are also mutually exclusive, and pr
If dividends per share are in surplus of earnings per share then a company must be making the dividend payment out of reserves. In other sense the net asset value of the business w
Determine out the future value of Rs.1000 compounded yearly for 10 years at an interest rate of 10 percent. Solution: The future value 10 years thus would be FV = PV (1+k)
Prepare Partial Income Statement through FIFO, And LIFO Methods The records of XYZ Restaurant Supply include the following accounts for cases of coffee cups at December 31 of t
The dictionary explains the word 'inventory' as stock of goods. Although, inventory implies that such type of assets that will be disposed of in future in the common course of busi
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