Answer: 15%
Explanation:
IRR is the discount rate that makes the NPV equal zero. Required rates of return that are less than the IRR will therefore result in a positive NPV and those that are higher will result in a negative NPV.
Use Excel to find the IRR.
= IRR(-328325,115000,115000,115000,115000)
= 15%
As the required rate of 13% is less than the IRR of 15%, the new machine will have a positive NPV.
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Answer:
Trust.
Explanation:
See its important so people can know you as a generally trustable person. Also, when a customer is they more than likely feel the need to come back. So if your selling product it will generate more customers and money.
Explanation:
The journal entry is shown below;
Short term investment A/c Dr $156,000
To Cash $156,000
(Being the cash is paid to purchase the short term investment)
For recording this transaction we debited the short term investment and credited the cash as cash it is outflow and at the same time it increases the asset so it would be debited
