Answer:
The answer is Credit.
Explanation:
Net loss can be thought of as a <u>Credit </u>to the Capital account.
Answer: $828
Explanation:
Given the following :
Semi-annual payment = $40
Period = 20 years
Number of payments = (20 * 2)(semiannual) = 40 payments
Par value = $1000
Interest rate = 5%
Using the PV table:
PV at $1 (40, 5%) = 0.1420
PVA at $1 (40, 5%) = 17.159
[Par value * PV at $1 (40, 5%)] + [$40 * PVA at $1 (40, 5%)]
= ($1000 * 0.1420) + ($40 * 17.159)
= $142 + $686.36
=$828.36
= $826
Answer:
Project A Project B
Initial investments ($170,000) ($115,000)
CF Year 1 $42,500 $34,500
CF Year 2 $58,500 $52,500
CF Year 3 $82,795 $68,500
CF Year 4 $92,900 $68,500
CF Year 5 $67,500 $68,500
using an excel spreadsheet and the IRR function, the internal rate of return of each project is:
- Project A's IRR = 26.02%
- Project B's IRR = 36.31%
We can use the discount rate (12%) to calculate the projects' NPV, we do not need it to calculate their IRR:
- Project A's NPV = $70,855
- Project B's NPV = $88,815
Answer: Depreciation expense for 2021 = $825
Depreciation expense for 2022 =$3, 300
Explanation:
Using Straight line depreciation
We have that our Annual depreciation= Purchase price - salvage value / useful life.
$22,500 - $2,700 / 6
=19,800/6
$3, 300
Depreciation expense for 2021 ( from October to December )
$3,300 x 3/ 12= $9,900/12
=$825
Depreciation expense for 2022 ( From January to December)
Annual Depreciation = $3,300
Answer:
b. decreases; decreases; falls.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
Recession can be defined as a period of economic meltdown, in which there's a general decline in all economic activities such as trade.
Hence, when the economy slips into a recession, normally the demand for bonds decreases, the supply of bonds decreases, and the interest rate falls, ceteris paribus (everything else held constant).
