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A software firm plans to migrate its infrastructure to a new VPS. The project requires an initial outlay of $10,000 and is expected to generate net cash flows of $4,000, $5,000, and $6,000 over three years. If the cost of capital is 10%, what is the Net Present Value (NPV)?
Using the formula $NPV = -I_0 + \sum \frac{CF_t}{(1+i)^t}$, we get: $-10,000 + 3,636 + 4,132 + 4,508 = 2,276$. (Calculated precisely: $NPV = 2104$).
The IFJ Declaration of Principles (adopted 1954, amended 1986 in Helsingรถr) specifically defines the following as grave professional offences for journalists:
- Plagiarism
- Malicious misrepresentation
- Calumny, slander, libel, and unfounded accusations
- Acceptance of a bribe in any form in consideration of either publication or suppression of information
Expressing personal political opinions in editorial content is not listed as a grave professional offence in this declaration. The declaration also requires journalists to: respect truth, defend freedom of information, report only facts of known origin, use only fair methods to obtain news, rectify inaccurate information, observe professional secrecy regarding sources, and be aware of discrimination. The code emphasises that journalists should recognise “in professional matters the jurisdiction of colleagues only, to the exclusion of every kind of interference by governments or others.”
Which row correctly describes marginal costing vs absorption costing?
| Option | Gives higher profits when inventory levels are increasing | Charges overheads to expenses rather than products |
|---|---|---|
| A | Absorption | Absorption |
| B | Absorption | Marginal |
| C | Marginal | Absorption |
| D | Marginal | Marginal |
Option B is correct.
- Higher profits when inventory rising → Absorption costing: Fixed overheads deferred in closing inventory, reducing the charge to profit.
- Charges overheads as period costs → Marginal costing: All fixed overheads expensed in the period incurred.
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