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1 year ago

Investment methods, such as net present value and internal rate of return, ________

1 answer:

7 0

Investment methods, such as net present value and internal rate of return,<u> </u>and<u> </u><u>Net present value</u><u> (NPV)</u>.

Net present value is the distinction between the prevailing fee of cash inflows and the prevailing fee of coin outflows over a time period. NPV is utilized in capital budgeting and funding making plans to analyze the profitability of a projected investment or task.

Net present value is the present fee of the coins flows at the specified rate of going back of your challenge in comparison for your preliminary funding,” says Knight. In sensible terms, it is a technique of calculating your go-back on funding, or ROI, for a venture or expenditure.

The net present price or internet gift really worth applies to a chain of coin flows going on at different instances. The existing value of a cash drift depends on the c programming language of time among now and the coins flow. It also depends on the bargain rate. NPV accounts for the time value of cash.

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A city government uses eminent domain to seize property for a new public high school complex. Which of the following statements

Evgesh-ka [11]

Answer:hi

Explanation:

The format for the equation of a circle is (x-h)^2+(y-k)^2=r^2, where (h,k) is your center and r is your radius. All we have to do is substitute the correct values, giving us the equation (x+2)^2+(y-1)^2=4

7 0

2 years ago

Beedle issued a 10-year bond to Aeron Company on 1/1/20x6. The bonds have a 6% annual interest rate and pay interest semi-annual

Mama L [17]

1. The issue price of the bonds is<u> $215,589.16</u>.

2. An amortization schedule through 20x9 is as follows:

<h3>Amortization Schedule:</h3>

Period PV PMT Interest Expense Amortization FV

1 $215,589.16 $6,000 $5,389.73 $610.27 $214,978.89

2 $214,978.89 $6,000 $5,374.47 $625.53 $214,353.36

Year 2

3 $214,353.36 $6,000 $5,358.83 $641.17 $213,712.20

4 $213,712.20 $6,000 $5,342.80 $657.20 $213,055.00

Year 3

5 $213,055.00 $6,000 $5,326.38 $673.62 $212,381.38

6 $212,381.38 $6,000 $5,309.53 $690.47 $211,690.91

Year 4

7 $211,690.91 $6,000 $5,292.27 $707.73 $210,983.18

8 $210,983.18 $6,000 $5,274.58 $725.42 $210,257.76

3. The journal entry recorded by Beedle on January 1, 20x6 is as follows:

Debit Cash $215,589.16

Credit Bonds Payable $200,000

Credit Bond Premium $15,589.16

To record the issuance of $200,000 at 6% interest, semi-annually.

4. The amount in the accounts at the end of 20x6 are:

A. Bond payable $200,000

B. Premium $14,353.36 ($15,589.16 - $610.27 = $625.53)

C. Fair value adjustment on Bond payable = $1,235.80 ($610.27 = $625.53)

D. Interest expense = $10,764.20

5. The journal entry to record the bond retirement transaction on 12/31/20X8 is as follows:

Debit Bonds Payable $200,000

Debit Bonds Premium $12,000

Credit Cash $212,000

To record the bond retirement.

<h3>Data and Calculations:</h3>

Maturity period = 10 years

Interest rate = 6% semi-annually

Interest payment dates = June 30 and December 31

Market rate = 5%

Face value = $200,000

Semi-annual coupon payment = $6,000 ($200,000 x 3%)

Fair value of the bonds at December 31:

12/31/20X6 $ 213,200

12/31/20X7 $ 213,300

12/31/20x8 $ 212,000

<h3>Issue Price Calculations:</h3>

N (# of periods) = 20 (10 years x 2)

I/Y (Interest per year) = 5%

PMT (Periodic Payment) = $6,000 ($200,000 x 6% x 1/2)

FV (Future Value) = $200,000

Results:

PV = $215,589.16

Sum of all periodic payments = $120,000 ($6,000 x 20)

Total Interest $104,410.84

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5 0

1 year ago

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0

natima [27]

Answer:

a. Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b. Dr Bad debt expense $2,205

Cr Allowance for doubtful debt $2,205

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Estimated uncollectible amount

= 5% × $49,000

= $2,450

As such, if the allowance for doubtful;

has a $833 credit balance before the adjustment

Additional allowance required

=$2450 - $833

= $1,617

Entries required are

Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b) a $245 debit balance before the adjustment.

This means that off the amount uncollectible $245 has already gone bad

Adjusting entries required amounts to

= $2450 - $245

= $2205

Dr Bad debts expense $2205

Cr Allowance for doubtful debt $2205

7 0

3 years ago

Small business loans are easier to get if

djverab [1.8K]

The answer is A. The owner has a lot of his own money invested in the business.

3 0

3 years ago

Cleaverland purchased 100% of Omaha on January 1, 2019 for $650,000. On that date, Omaha's stockholders' equity was $650,000, an

zzz [600]

Answer:

$960,000

Explanation:

The balance in equity investment made by Cleaverland in Omaha as at December 31, 2020 shall be determined using the following method:

Purchased price of Cleaverland as at January 1, 2019 $650,000

Net income for the year 2019 $150,000

Net income for the year 2020 $190,000

Less: Dividend paid by Omaha to Cleaverland ($30,000)

Balance as at December 31, 2020 $960,000

5 0

3 years ago