Despite increasing production costs, Company A retains a consistent sales price of $400 per vacuum. They sell 200 vacuums in the first quarter, generating a revenue of $80,000. The rate of inflation impacts the size of the tax differential created by FIFO and LIFO. Under a high-inflation economy, using FIFO results in a significantly lower …
NPV might not be helpful or useful for comparing investments of drastically different sizes, or projects of different sizes. To do that, you’d divide the company’s net present value by the number of outstanding shares in the company to get this number. If the net value per share is higher than the stock’s current market …
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