[rolliesbaby]

Why does a business want to keep separate accounts for recording sales of service and sales of goods?

[CaptainForest]

So they can better analyze how each division of their company is doing.

If I tell you I made $1,000,000 in sales in 2006, that is nice.

But if I break it down further for you and tell you that I made:
$950,000 in Service Sales
$50,000 in Goods Sales

Then you can see the bulk of my business is in the service industry and can help a company plan better.

[white horse]

Chaos industries
Chaos industry is considering an investment in a fleet of 10 delivery vans to distribute its products to customers. The vans will cost 15,000 yuroo each to buy, payable immediately. The annual running csts are expected to total 20,000 yuroo for eacg van (including driver salary). The vns are expected to operate successfully for six years at the end of which they will all have to be scrapped with disposal proceeds expected to be about 3,000 yuroo per van .At present the business uses acommercial carrier for all of its deliveries. It isexpected that this carrier for all of its deliveries. It is expected that this carrier will charge a total of 230,000 each year for the next six years to undertake the deliveries.

Questions;
What are the cash flows for this investment?
What is the payback period for this investment?
What is the NPV for this investment assuming as 15% opportunity cost of finance ( (i.e.discount rate)?
What is the internal rate of return for this investment?

Kindly help me in solving this

[NeedKarma]

A. There was no reason whatsoever for you to add a Disagree comment to CaptainForest answer (which was not even an answer to your question)
B. stop spamming the thread with the same text, you should have started a new thread with your question
C. No, we will not do your homework for you.