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The Cat's Meow manufactures gourmet cat food.During the month,it manufactured 5,000 cans of tuna,using 0.10 hour of direct labor per can at a rate of $8.00 per hour.The materials and labor standards for manufacturing the cans of tuna are as follows:
The company actually used 4,900 pounds of tuna at a price of $0.65 per pound.It also purchased 5,000 cans at a price of $0.45 per can.
NPVs
Net Present Values; the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of a company’s wealth maximization.
Average Accounting Return
A measure of an investment's profitability, calculated as the average net income divided by the average investment.
Average Book Value
The mean value of an asset or investment determined by its original cost minus depreciation or amortization.
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