Answer: A reversing entry: <em><u>"is the exact opposite of an adjusting entry made in a previous period.".</u></em>
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Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.
Answer:
Wage year 4= $12222.19
Explanation:
Giving the following information:
Each additional year of education causes future wages to rise by 7 percent.
A person with 12 years of education makes $21 000 per year.
A person with 4 years of education=$?
We will use the present value formula to calculate the wage in year 0. Then with the final value formula calculate the year 4 wage.
PV= FV/[(1+r)^n]
FV=final value at t time
r= rate
n= period of time
PV= 21000/(1,07^12)= $9324. 2511
Final Value= PV*(1+r)^t
Final Value year 4= 9324.2511*(1,07^4)= $12222.19
Answer:
The answer and procedures of the exercise are attached in the following archives.
Explanation:
Consider this explanation too
The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.
Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.
Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.
Answer:
A.Off grid homes
Explanation:
Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.
OFF GRID HOMES refer to homes which are self-sufficient without reliance on modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.
Therefore, these homes can be insured by a specific type of insurance policy.
Regional mortgage rate differentials do exist, depending on supply & demand conditions in the different regions. However, high rates in one region would attract capital from other regions, and the end result would be a diffferential that was just sufficient to cover the costs of causing the transfer. Differentials are more likely in the residential mortgage market than the business loan market, and not at all likely for the large, nationwide firms, which do their borrowing in the lowest-cost money centers thereby quickly equalizing rates for large corporate loans. Interest rates are more competitive, making it easier for small borrowers, and borrowers in rural areas, to obtain lower cost loans
