The correct answer is: Subsidized Loans
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Answer:
Dr Depreciation Account 5,000
Cr suspense Account 5,000
Explanation:
Based on the information given if the amount of Rs.5,000 which was written off as depreciation on furniture has not yet been debited to depreciation account the appropriate Journal entry to rectify the transaction is :
Dr Depreciation Account 5,000
Cr suspense Account 5,000
(Being to rectify the amount of Depreciation not debited in depreciation account now recorded)
Answer:
a) 13.704%
b) 3.704%
Explanation:
Development of composite snowboard = 4 years
Total cost / investment = 250,000 * 4 = $1,000,000
Annual cash flows ; $200,000 for 10 years
discount rate = 10%
cash flow at t = 0 = ( Total cost / investment ) = - $1,000,000
<u>a) calculate the IRR for the snow board </u>
attached below is the calculation using online tool
IRR = 13.704%
<u>b) maximum deviation allowable in cost of capital</u>
maxi deviation = IRR - r
= 13.704% - 10% = 3.704%