Question
1. Ellison Products is considering a new project that develops a new laundry detergent, WOW. The company has estimated that the project's NPV is $3
1. Ellison Products is considering a new project that develops a new laundry detergent, WOW. The company has estimated that the project's NPV is $3 million, but this does not consider that the new laundry detergent will reduce the revenues received on its existing laundry detergent products. Specifically, the company estimates that if it develops WOW the company will lose $500,000 in after-tax cash flows during each of the next 10 years because of the cannibalization of its existing products. Ellison's WACC is 10 percent. What is the net present value (NPV) of undertaking WOW after considering externalities? a. $2,927,716.00 b. $3,000,000.00 c. -$ 72,283.55 d. $2,807,228.00 e. -$3,072,283.55
1.Mention the types of accounts involved in double-entry book-keeping:
2.The ___________is an account used to record all the information. It can be expenses and income types that are recorded into separate accounts.
3.What is the main difference between accumulated depreciation and depreciation expense?
4.A _________is a process done by a company. It ensures that the company's records are correct and that the bank's records are also correct. These records can be check register, balance sheet, a general ledger account, etc.
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