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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.
Q. Primary restriction of making demand? The primary restriction of making demand forecasts lies in the fact that they are forecasts and hence their reliability is unknown. Mos
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You are evaluating a project which costs $720,000, has a four-year life, and no salvage value. Depreciation is straight-line and the half year rule does not apply. Sales are projec
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Illustration of Pre-Aquisition H Ltd.. Acquired 80% of S Ltd. during the year ended 31/12/04. S Ltd. paid an interim dividend of 40,000 on 30th September and as at 31/12/04 h
why good judgement is important when making budgeting decisions
Statement to ascertain profit in analysis method and comparison method, and reconstructed using ledger
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