A New Entrepreneur Wants to Estimate the Costs of an Offsite

question 13

Short Answer

A new entrepreneur wants to estimate the costs of an offsite team- building event for her 14 employees. She was able to gather the following information on a 3- day program in which she is interested. Use the unit technique to estimate the cost per employee of this event. Assume there will 100% participation in all activities.

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, crucial for analyzing the profitability of the investment.

Stand-Alone Cash Flows

Cash flows that a specific project is expected to generate, considered independently from the company's other cash flows.

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with a project or investment, minus the initial investment cost, used to assess its profitability.

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations, showcasing its ability to cover short-term debts.