Answer: False
Explanation:
The Program Evaluation and Review Technique (PERT) is used to know the schedule tasks and also know the critical path variation. It is useful to know the length of time that'll be needed for the completion of every task and how it relates to others in order to know the entire time needed to complete the particular project.
The Project Evaluation and Review Technique (PERT) is not a means of scheduling and controlling projects with constant activity times. The activity time normally varies.
If it is determined that your procurement scenario will not be conducted using full and open competition you are prohibited from purchasing a non-domestic product.
A. True
B. False
Answer:
Correct answer:
A. True
Explanation:
When procurement of goods and services is to be made from another country, it is expected that, it should be open and done in full view showing other competitors. This is to prevent fraud, such as the marking up of the price of goods or outright false declaration of the procurement prices.
At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations:
Cost Fair Value
Trading Securities:
Security A $ 930,000 $ 943,000
Security B 135,000 129,400
Totals $ 1,065,000 $ 1,072,400
Securities Available-for-Sale:
Security C $ 730,000 $ 807,000
Security D 930,000 946,200
Totals $ 1,660,000 $ 1,753,200
Securities to Be Held-to-Maturity:
Security E $ 520,000 $ 530,600
Security F 645,000 639,400
Totals $ 1,165,000 $ 1,170,000
No investments were sold during 2018. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent.Required:Compute the below table to calculate the following. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The Totals computed are as follows:
Current Assets = $2,399,400
Noncurrent Assets = $1,591,200
Net Income (I/S) = $7,400
Other Comprehensive income (OCI) = $93,200
Total Comprehensive Income = $100,600
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the full question.
The explanation to the answer is now provided as follows:
Required: Compute the below table to calculate the following. (Amounts to be deducted should be indicated with a minus sign.)
Note: See the attached Excel file for the computed table.
Also note the following:
1. In the computed table, all the Trading Securities and Securities Available-for-Sale are stated at Fair Value, and the Net Income (I/S) of each of the security is calculated by deducting the Cost of each of them their Fair Value.
2. Securities to Be Held-to-Maturity are stated at Cost and therefore, no profit is reported for them.
A 20-year-old woman wants to purchase a $100,000 one-year life insurance policy. What should the insurance company charge the woman for the policy if it wants an expected profit of $50?
Answer:
Hello some parts of the question is missing here is the missing part
Age probability of female death
20 0.00060
30 0.00070
40 0.00095
50 0.00300
Answer : $110
Explanation:
Given that the woman is 20 years of age and wants to buy one-year life insurance policy the insurance company would have to charge her considering the probability of female death within 20 years of age
expected profit for insurance company = $50
cost of insurance = $100000
For the company to make a profit of $50 we make use of this relation
x * ( 1 - probability of female death at 20 ) - ( cost of insurance - x ) * probability of female death at 20 = 50
= x *( 1 - 0.00060 ) - ( 100000 - x ) * 0.00060 = 50
= x* ( 0.9994 ) - (60 - 0.00060 x ) = 50
= 0.9994 x - 60 + 0.00060 x = 50
hence x = 50 + 60 = $110
Founder of Vanguard, Jack Bogle, believes that all investors should buy stock indices. Group of answer choices He believes in strong form market efficiency. He believes in semi-strong form market efficiency. He believes in weak form market efficiency. He believes markets are not efficient.
Answer:
Correct Answer:
1. He believes in strong form market efficiency.
Explanation:
Jack Bogle believed that, in a situation where people simply buy an entire group of stocks as a result of investors investing money into the index fund, it will create a strong market. That is, if every investor in the world only purchased the same index fund, then the market of buyers and sellers would no longer set the fair market price of the stocks in the stock market.
define accounting ?
Answer:
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
Answer:
the action or process of keeping financial accounts.
Explanation:
Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable expense is $17 per unit. The company’s monthly fixed expense is $8,100. Required: If the company's fixed expenses increase by $600, what would become the new break-even point in dollar sales?
Answer:
the new break-even point in dollar sales is $29,000.
Explanation:
Break even point is the level of activity where a firm makes neither a profit nor a loss.
Break even point (dollar sales) = Fixed Cost ÷ Contribution Margin Ratio
Where, Contribution Margin Ratio = Contribution ÷ Sales
= ($20 - $17) ÷ $20
= 0.30
New Break even point (dollar sales) = ($8,100 + $600) ÷ 0.30
= $29,000
"The flexible budget formula is fixed costs $50,000 plus variable costs of $4 per direct labor hour. What is the total budgeted cost at (a) 9,000 hours and (b) 12,345 hours
Answer:
$86,000 and $99,380
Explanation:
The flexible budget formular is fixed at $50,000 plus variable costs
The direct labor hour is $4 per hour
The total budgeted cost at 9,000 hours can be calculated as follows
= $50,000 + ($4×9,000 hours)
= $50,000 + $36,000
= $86,000
The total budgeted cost at 12,345 hours can be calculated as follows
= $50,000 + ( $4×12,345 hours)
= $50,000 + $49,380
= $99,380
Hence the total budgeted cost at 9,000 hours and 12,345 hours is $86,000 and $99,380 respectively
You have been hired as a consultant to Freedom Inc. a consumer-focused financial institution intending to enter the Ghanaian market. Critically analyse what factors you shall consider in advising Freedom Inc. on how it should set its lending interest rates, accounts commissions, fees & charges
Answer:
firstly; the area to start with. find out more about the place. Their income and the rate at which goods are sold there.
Kingbird Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,360 ounces of grape concentrate at $0.02 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.90 each 150 yeast tablets at $0.26 each 250 nutrient tablets at $0.14 each 2,400 ounces of water at $0.005 per ounce Kingbird estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)
Answer:
$5.272
Explanation:
The computation of the standard cost of the ingredients for one gallon of wine is shown below:-
But before that we need to do the following calculations
3,360 ounces of grape concentrate at $0.02 per ounce is (Considering 4%)
= 3,360 × $0.02 ÷ 96%
= $70
54 pounds of granulated sugar at $0.55 per pound is (Considering 10%)
= 54 × $0.55 ÷ 90%
= $33
60 lemons at $0.90 each is (Considering 25%)
= 60 × $0.90 ÷ 75%
= $72
150 yeast tablets at $0.26 each is
= 160 × $0.26
= $41.6
250 nutrient tablets at $0.14 each is
= 250 × $0.14
= $35
2,400 ounces of water at $0.005 per ounce is
= 2,400 × $0.005
= $12
Therefore 50 gallon cost is = $70 + $33 + $72 + $41.6 + $35 + $12
= $263.6
So, cost per gallon = $263.6 ÷ 50
= $5.272
A company had the following cash flows for the year: (a) Purchased inventory, $60,000 (b) Sold goods to customers, $90,000 (c) Received loan from a local bank, $150,000 (d) Purchased land, $180,000 (e) Purchased treasury stock, $40,000 (f) Paid dividends, $10,000 (g) Sold delivery truck, $30,000 What amount would be reported for net investing cash flows on the Statement of Cash Flows (for a negative number put a minus in front of the number)?
Answer:
The amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.
Explanation:
Cash flow from investing activities refers to the section of the cash flow statement that provides amount of cash that is generated or spent on investing activities.
Investing activities comprises of purchases or sales property plant, and equipment (PP&E), marketable securities (i.e., stocks, bonds, etc.), and among others.
From the question, the amount of net investing cash flows can be computed as follows:
Particulars Amount ($)
Purchased land –180,000
Purchased treasury stock –40,000
Sold delivery truck 30,000
Net cash flow from investing activities –190,000
Therefore, the amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.
Which of the following is an advantage of job specialization? 1 point A. The quality of work increases. B. Jobs can be mastered quickly. C. Employees are more involved with their jobs. D. The work is less repetitive. E. Task specialization has no clear advantages to the organization
Answer: B. Jobs can be mastered quickly.
Explanation:
Job specialization is when the employees in an organization focuses and concentrates on one particular aspect in a organization. Specialization makes employees more efficient and also effective at their role.
Also, jobs can be mastered quickly since the employees typically focuses on one particular aspect in the organization.
A piece of equipment (Asset class 15.0) was purchased bythe Jones Construction Company. The cost basis was $300,000. Determinethe ADS and GDS depreciation deductionfor this property each year
Answer:
Alternative depreciation system (ADS depreciation) per year:
Year % depreciation expense
1 8.32% $24,960
2 16.67% $50,010
3 16.67% $50,010
4 16.67% $50,010
5 16.67% $50,010
6 16.67% $50,010
7 8.33% $24,990
General depreciation system (GDS depreciation) or MACRS per year:
Year % depreciation expense
1 20% $60,000
2 32% $96,000
3 19.20% $57,600
4 11.52% $34,560
5 11.52% $34,560
6 5.76% $17,280
Suppose you have $ cash today and you can invest it to become worth $ in years. What is the present purchasing power equivalent of this $ when the average inflation rate over the first years is % per year, and over the last years it will be % per year?
Answer: $900,599.04
Explanation:
The present purchasing power equivalent is the present worth of this investment.
The investment will earn 5% for the first 7 years and then 9% for the next 10.
As there are different rates, the present worth calculation will have to reflect that.
At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;
= 3,000,000(Present worth factor, 9%, 10 years)
= 3,000,000 * 0.4224
= $1,267,200
Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.
= 1,267,200 (Present worth factor, 5%, 7 years)
= 1,267,200 * 0.7107
= $900,599.04
For each of the following cases determine the ending balance in the inventory account. a. Jill’s Dress Shop had a beginning balance in its inventory account of $44,500. During the accounting period, Jill’s purchased $88,500 of inventory, returned $5,900 of inventory, and obtained $840 of purchases discounts. Jill’s incurred $1,180 of transportation-in cost and $690 of transportation-out cost. Salaries of sales personnel amounted to $35,500. Administrative expenses amounted to $40,100. Cost of goods sold amounted to $91,300.b. Ken’s Bait Shop had a beginning balance in its inventory account of $8,000. During the accounting period Ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. Sales discounts amounted to $640. Ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. Selling and administrative cost amounted to $12,300. Cost of goods sold amounted to $33,900.
Answer:
a) Jill's
beginning inventory = $44,500
purchases = $88,500 - $5,900 - $840 = $81,760
transportation in expenses = $1,180
total inventory costs = $127,440
cost of goods sold = $91,300
ending inventory = $127,440 - $91,300 = $36,140
b) Ken's
beginning inventory = $8,000
purchases = $36,900 - $1,200 - $360 = $38,460
transportation in expenses = $900
total inventory costs = $47,360
cost of goods sold = $33,900
ending inventory = $47,360 - $33,900 = $13,460
Inefficient output and price, few choices for consumers, and rent seeking are all problems associated with
Answer: c. Monopolies.
Explanation:
Because Monopolies have no competition, the main incentive to be efficient is missing. This leads to a situation where Monopolies are not as efficient as they are to be in production as well as price because they will charge a price that does not match the optimal quantity associated with that price.
With no or few competition in the market, consumers will not have a lot of choices on entities to source the good from and there is a problem of Rent seeking with Monopolies as well. Rent seeking for monopolies occurs when they charge people above the price they are to charge if they were in a competitive market. They are therefore making more money than they should at the expense of customers.
Simon Company's year-end balance sheets follow.
At December 31 2015 2014 2013
Assets
Cash $25,267 $30,131 $31,387
Accounts receivable, net 75,450 50,642 41,435
Merchandise inventory 92,074 68,299 44,128
Prepaid expenses 8,301 8,066 3,418
193,532
Plant assets, net 231,487 215,775
Total assets $432,579 372,913 313,900
Liabilities and Equity
Accounts payable $106,635 $62,392 $41,849
Long-term notes payable secured by
mortgages on plant assets 79,698 84,912 71,453
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 82,746 62,109 37,098
Total liabilities and equity $432,579 $372,313 313,900
Express the balance sheets in common-size percents.
Answer:
Simon Company
Common-size percents Balance Sheet as of the years ended December 31 2015 2014 2013:
2015 % 2014 % 2013 %
Assets
Cash $25,267 5.8% $30,131 8.1% $31,387 10%
Accounts receivable, net 75,450 17.4% 50,642 13.6% 41,435 13.2%
Merchandise inventory 92,074 21.3% 68,299 18.3% 44,128 14.1%
Prepaid expenses 8,301 1.9% 8,066 2.2% 3,418 1.1%
201,092 46.5% 157,138 42.1% 120,368 38.3%
Plant assets, net 231,487 53.5% 215,775 57.9% 193,532 61.7%
Total assets $432,579 100% 372,913 100% 313,900 100%
Liabilities and Equity
Accounts payable $106,635 24.7% $62,392 16.7% $41,849 13.3%
Long-term notes payable secured by mortgages
on plant assets 79,698 18.4% 84,912 22.8% 71,453 22.8%
Total Liabilities $186,333 43.1% $147,304 39.5 $113,302 36.1%
Common stock, $10
par value 163,500 37.8% 163,500 43.8% 163,500 52.1%
Retained earnings 82,746 19.1% 62,109 16.7% 37,098 11.8%
Total liabilities and
equity $432,579 100% $372,913 100% 313,900 100%
Explanation:
Simon Company's balance sheets in common-size percents shows the relative values of assets and liabilities and equity in numeric and percentage terms to enable comparison. The company's balance sheet line items are expressed as percentages of the total, usually the total assets in each period. From the analysis, the management, investors, and other parties of Simon Company can understand the changes in the line items from year to year, thus making it possible for Simon Company to undertake a trend analysis.
The term crowding-out effect refers to a situation in which a government _______________ results in ______________ interest rates, causing ______________ in private spending on investment and consumer durables.
Answer: Deficit; higher; a decrease
Explanation:
The term crowding-out effect refers to a situation in which a government deficit results in higher interest rates, causing a decrease in private spending on investment and consumer durables.
The Crowding-out effect is what happens when a Government increases its spending past its revenues and gets a budget deficit. In other to balance its books therefore it will borrow heavily.
If the Government is such a large one like the American Government or the British Government, the borrowing might be so large that it will have the effect of reducing the amount of loanable funds in the market thereby increasing the interest rates due to a reduced supply of loanable funds.
As there are now increased interest rates, it will be more expensive for companies to borrow to spend on investment or for consumers to spend on durables. It will have the effect of crowding out the private sector.
Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in dividends and inflation averaged 3.2 percent. Today, you sold your shares for $82.20 a share. What is your approximate real rate of return on this investment?
Answer:
5.65%
Explanation:
Last year a stock of $78.00 was bought
During the period of one year $2.70 was received in dividend and inflation averaged 3.2%
Today the shares was sold for $82.20
The first step is to calculate the nominal return
= ($82.20-$78.00+$2.70)/$78.00
= 6.9/78
= 0.0885×100
= 8.85%
Therefore, the approximate real rate can be calculated as follows
= 8.85%-3.2%
= 5.65%
Hence the approximate real rate of return on this investment is 5.65%
Darvelle previously worked in a traditional office building with private cubicles. He recently changed jobs to a tech start-up, and he is having trouble getting used to the open layout and free-form work spaces. What component of organizational culture does Darvelle find challenging
Answer:
Hi! The answer is “workplace artifacts”
The component of organizational culture that Darvelle finds challenging is: Workplace Artifacts.
Psychologist Edgar Schein proposed that there were three components of organizational culture that included workplace artifacts, values, and assumptions.
Artifacts are those obvious structures in an organization that can be seen by all including the visitors therein.
It can be confusing to observers especially if they do not understand the culture of the organization.
So, the open layout and free-form workspace in the new organization that Darvelle worked in is an aspect of Artifacts.
Learn more about organizational culture here:
https://brainly.com/question/16049983
Jack, an employee of Desert Sky, Inc., has gross salary for May of . The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of %. Which of the following is a part of the journal entry for accrual of the employer payroll taxes? (Assume a FICAOASDI Tax of % and FICAMedicare Tax of %.) Jack's income to date exceeds the FUTA and SUTA tax income limits
Answer:
Credit to Cash for $4,995 is correct
Explanation:
here is a complete question
has a gross salary for May of $7,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 21%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICA-OASDI Tax of 6.2 % and FICA-Medicare Tax of 1.45%. Round the final answer to the nearest dollar.) A. debit to Cash for $4,995 B. debit to FICA Tax Payable of $4,995 O C. debit to Employee Income Tax Payable of $4,995 D. credit to Cash for $4,995
The computation of the amount that becomes the part for accrual the employer payroll taxes is shown below:
Gross Pay $7,000
Less: Deductions
Federal Income tax $1,470 ($7000 × 21%)
FICA-OASDI tax $434 ($7000 × 6.2%)
FICA-Medicare tax $102 ($7,000 × 1.45%)
Total Deductions 2006
Net pay $4,995
A newer form of performance appraisal is called the ___________ because it encourages feedback from all around the employee including those who report to him/her.
Answer:
360-degree review
Explanation:
A 360-degree review is a process in which a company gathers information about the performance and behavior of an employee from different sources that can be coworkers, supervisors and subordinates but also from people outside the company that have to interact with the person like suppliers to evaluate the employee and help him/her to develop skills. According to this, the answer is that a newer form of performance appraisal is called the 360-degree review because it encourages feedback from all around the employee including those who report to him/her as in this form of evaluation the company obtains feedback about the employee's performance from different sources.
Would activity-based costing or activity-based management be useful for the airport store? Why or why not?
Answer with Explanation:
Activity based costing will not be useful because the airport store has hundreds of items which share a indirect costs like rentals, warehouse expenses, delivery costs, electricity, maintenance costs, etc.
The reason why its use in the case of airport store is not beneficial is as under:
Time Consuming: All indirect costs can't be absorbed in hundreds of product and would take more than one month to allocate indirect costs to each product. List of Restricted Product Price: Another reason is that the airport stores are given a price schedule which restrict selling of products at higher costs. This means if the contribution arising from the product then we can't change its price as it is restricted by the airport authorities.The indirect cost remains fixed and is not changing in this case which means it is not determinable which product consumes greater share of indirect cost as sometimes shelves will be not 100% occupied hence determining cost drivers for each cost pool would be a difficult task.Purpose is Lost: The purpose of ABC is to allocate the indirect costs to each product which apportioned on a fairer basis and lower the indirect cost by lowering the usage of cost drivers. The indirect costs can't be lowered as maintenance cost is fixed, electricity consumption remains the same, rentals are also fixed, this means that the purpose of allocation and controlling of cost drivers is lost.Suitable for Manufacturers not for Stores: The manufacturer's products deal with dozens of costs that are variable if the cost driver changes. The cost driver changes are not changing the indirect cost in the case of airport store which means that if a product which occupied 1 shelve is now occupying 2 shelves is not increasing the rental cost.Hence ABC is not suitable for airport store.
Ideally, in effective marketing planning, goals should be _____ in terms of what is to be accomplished and when.
Answer:
The answer is quantified and measurable.
Explanation:
Goals need to be quantified and measurable in effective marketing planning. To determine what needs to be accomplished and when, we must put figures to it. This makes performance measurement easier where variances at the end can be analysed.
For example, one of the marketing goals for bank A might be to onboard 100 new customers every month for a year after the launching of its new mobile app.
This example is quantified and can be measured every month.
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,000 and $2,900, respectively. During the year Kincaid reported $190,000 of credit sales. Kincaid wrote off $1,750 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $227,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to:
a) $29,650.
b) $28,500.
c) $33,300.
d) $31,550.
Answer:
b) $28,500.
Explanation:
The computation of the net realizable value of receivables is shown below:
As we know that
Net realizable value = Gross account receivable - allowance for doubtful debts
where,
Gross account receivable is
= Beginning balance of the account receivable + credit sales - written off amount - collections
= $71,000 + $190,000 - $1,750 - $227,700
= $31,550
And, the allowance for doubtful debts is
= Beginning balance of allowance for doubtful debts - written off + allowance needed
= $2,900 - $1,750 + $190,000 × 1%
= $3,050
So, the net realizable value is
= $31,550 - $3,050
= $28,500
hence, the correct option is b. $28,500
The Sherman Antitrust Act of 1890 was successful enough in reducing the power of cartels and monopolies that no further legislation to curb monopoly power has ever been needed.
a. True
b. False
Answer:
False
Explanation:
After the Sherman Antitrust Act of 1890 , the Clayton Act was passed in 1914. the purpose of this act was to strengthen the anti trust law
Ship Co. produces storage crates that require 37.0 meters of material at $0.50 per meter and 0.10 direct labor hours at $12.00 per hour. Overhead is applied at the rate of $18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card
Answer:
Standard cost per unit= $21.5
Explanation:
Giving the following information:
Ship Co. produces storage crates that require 37.0 meters of material at $0.50 per meter
0.10 direct labor hours at $12.00 per hour.
Overhead is applied at the rate of $18 per direct labor hour.
We need to determine the standard cost per unit:
Direct material= 37*0.5= 18.5
Direct labor= 0.1*12= 1.2
Manufacturing overhead= 0.1*18= 1.8
Standard cost per unit= $21.5
o What types of human resource issues should management be aware of and sensitive to when making this change in distribution methods
Answer:
Management should be aware of and sensitive to the reaction of outstanding employees who relate directly to the former distribution methods.
Explanation:
When the company changes in distribution methods, the employees who relate and gets benefits directly to the former would react negatively. They are afraid of their own dismissal or income reduction. Some may react extremely which results in damages for the company. Hence, the company should work on internal communications to all employees before officially making the change.
At the end of a particular operating period, suppose Brenda (the manager) sits down with Ethan (the employee) and they meet to determine how well Ethan's performance has met the objectives set by Brenda. Which step in the MBO process would this be?
Answer:
Evaluate performance
Explanation:
The mbo process is a time where an employee and manager work together and sets record for a particular period of time.
This step in the mbo process is evaluation of performance. Under this step, the manager reviews the work of the employee from the question, this is what Brenda is doing with Ethan. She is evaluating his performance.
Cash Payback Method Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:
Year Liquid Soap Body Lotion
1 $170,000 $90,000
2 150,000 90,000
3 120,000 90,000
4 100,000 90,000
5 70,000 90,000
6 40,000 90,000
7 40,000 90,000
8 30,000 90,000
Total $720,000 $720,000
A. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.
Payback period for liquid soap
Payback period for body lotion
B. The project with the_____net cash flows in the early years of the project life will be favored over the one with the______net cash flows in the initial years.
Answer:
1a. Payback period for LIQUID SOAP =4 years
Payback period for BODY LOTION =6 years
1b. GREATEST; LESS
Explanation:
1a.Calculation for the Payback period for liquid soap
LIQUID SOAP
Year Cash flow Cumulative Cash flow
1 $170,000 $170,000
2 (150,000+170,000) =320,000
3 (120,000+320,000)=440,000
4 (100,000+440,000)=540,000
5 (70,000+540,000)= 610,000
6 (40,000+610,000)= 650,000
7 (40,000+650,000)= 690,000
8 (30,000+690,000)= 720,000
The Payback period for LIQUID SOAP will be 4 years
Calculation for the Payback period of body lotion
BODY LOTIO
Year Cash flow Cumulative Cash flow
1 $90,000 $90,000
2 (90,000+90,000)=180,000
3 (90,000+180,000)=270,000
4 (90,000+270,000)=360,000
5 (90,000+360,000)=450,000
6 (90,000+450,000)=540,000
7 (90,000+540,000)=630,000
8 (90,000+630,000)=720,000
The Payback period for BODY LOTION will be 6 years
Based on the calculation above for both liquid soap and body lotion the product offering i will recommend to Lily Products Company, based on the cash payback period for each product line will be LIQUID SOAP because it has a 4 years payback period.
B. The project with the GREATEST net cash flows in the early years of the project life will be favored over the one with the LESS net cash flows in the initial years.
You have tickets to go to Jamaica over spring break. Just this week your best friend informs you that he (she) is getting married over spring break. Your friend would like you to stay back in the city and be the wedding attendant. The tickets to Jamaica are nonrefundable. Which of the following is a sunk cost relating to your decision of attending the wedding or going on the trip to Jamaica?
a. The cost of wedding gift.
b. The cost of the airline tickets to Jamaica.
c. The cost of the clothing you will have to buy/rent to be in the wedding.
d. The cost of the rent on your apartment for the month