The net present value (NPV) for Epiphany's Project is closest to ________
Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:
Year 0 1 2 3
Sales (Revenues) 150,000 150,000 150,000
- Cost of Goods Sold (50% of Sales) 75,000 75,000 75,000
- Depreciation 25,000 25,000 25,000
= EBIT 50,000 50,000 50,000
- Taxes (35%) 17,500 17,500 17,500
= unlevered net income 32,500 32,500 32,500
+ Depreciation 25,000 25,000 25,000
+(-) increase/(decrease) in working capital 5,000 5,000 -10,000
- capital expenditures -90,000
A) $23,387
B) $140,319
C) $46,773
D) $93,546
Answer: C
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Merchandise inventory turnover measures the relationship between
a. assets and current liabilities. b. merchandise inventory and current liabilities. c. expenses and merchandise inventory. d. cost of goods sold and merchandise inventory.
The third step in the factor-comparison method for job evaluation is:
A. selecting and defining the comparison factors to be used. B. identifying benchmark or key jobs in an organization. C. developing a job-comparison chart to display the benchmark jobs in an organization. D. ranking the benchmark jobs in an organization on each compensable job factor.
The Center for Audit Quality was started by the International Federation of Accountants
a. True b. False Indicate whether the statement is true or false
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional information is also available:? Plunkett sold and shipped goods costing $37,300 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $211,500. ? Plunkett purchased goods costing $43,300 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $211,500. ? Plunkett's ending inventory balance of $211,500 included $14,300 of goods being held on consignment from Carole
Company. (Plunkett Company is the consignee.) ? Plunkett's ending inventory balance of $211,500 did not include goods costing $94,300 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is: A. $205,500 B. $197,200 C. $191,200 D. $168,200 E. $153,900