When is the target profit achieved?
A. When the total contribution is equal to the total fixed costs plus target profit
B. When the total contribution is equal to the total costs plus target profit
C. When the total contribution plus target profit is equal to the total fixed costs
D. When the total variable costs plus target profit is equal to the total fixed costs
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Jai invested a sum of money for three years at a compound interest rate of 2% per year. After three years the sum of money was worth $541.22.What was the amount invested?
A. $177
B. $313
C. $510
D. $538
A new machine costing $150,000 has an estimated realisable value of $30,000 after six years. Depreciation is charged on a straight line basis and profit from the investment is expected to be $40,000 net of depreciation.What is the payback period?
A. 2 years
B. 2.5 years
C. 3 years
D. 3.75 years
Which of the following statements is true?
A. IRR uses accounting profits rather than cash flows
B. NPV and IRR take account of the time value of money
C. Payback is considered to be a superior appraisal method than NPV
D. The payback period will be longer than the discounted payback period
F Co has a produced a sales revenue budget for the next quarter as follows:10% of sales are cash sales. 25% of credit sales are received in the month after sales and the rest are received two months after sale.What are the budgeted receipts for December?
A. $148,750
B. $151,495
C. $163,870
D. $166,370