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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.
SURVIVORSHIP POLICY The partners may take out a survivorship policy to safeguard against future cashflow problems incase a partner dies or the business is dissolved. E.g. incas
what is closing entry
profit and loss account
You were recently hired by E&T Boats, Inc. to assist the company with its financial planning and to evaluate the company's performance. E&T Boats, Inc. builds and sells boats to o
#explain the accounting cyclequestion..
Q. Redemption of debt? Equity finance is permanent capital that doesn't need to be redeemed while debt finance will need to be redeemed at some future date. Redeeming a huge am
The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. 10 marks Summer 2013 Sundry Debtors Rs.160000 Bad Debts written off Rs 9000 Dis
Q. Explain the Negative Assurance? Negative Assurance - Report issued by an ACCOUNTANT based on limited procedures which states that nothing has come to accountant's attention
Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0
Explain in detail about the Sole proprietorship Sole proprietorship, as the name suggests, is where an individual is the sole owner of a business. This type of business is ofte
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