Answer:
to accept both the projects i.e. Project Peso and Project Quasi
Explanation:
As we can see in the given case, that the weighted average cost of capital on the projects is 9% while on the other hand, Perso and Quasi both have the internal rate of return 10.6% and 12.6% i.e. above 9% so based on this, the decision that should firm make is to accept both the projects i.e. Project Peso and Project Quasi
The same would be relevant
Every human has a desire for better standards of living. For this, they need to change with their desires and wants for the better in terms of food, clothing, and living
The journal entry for the issuance of the stock for issue of 40 shares at a par value of $20, will affect a credit to Common Stock for $800.
<h3>What is a journal entry?</h3>
The process of maintenance of systematic and chronological records of financial transactions during a given financial period is known as a journal entry.
Hence, option C holds true regarding the journal entry.
Learn more about journal entry here:
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That will be a <span>Limited Liability Company (LLC)</span>
Answer:
Option (b) $1.00
Explanation:
Data provided in the question:
Selling cost = $9/ unit
Number of units sold = 10,000
Accounting profit = $20,000
Variable costs = $6 per unit.
Now,
let x be the increase in variable cost
Account profit = Revenue - Variable cost
thus,
$20,000 = $9 × 10,000 - ($6 + x) × 10,000
or
$20,000 = ( $9 - $6 - x ) × 10,000
or
$2 = $3 - x
or
x = $1.00
hence,
Option (b) $1.00
