The net present value of the proposed investment is closest to $5,146.
Net present value = Present value of cash-flows - Initial investment
<u>Given Information</u>
PV of cashflows at 18%
Cash flows PV at 18% P.V. of cash-flows
$12,000 (Cost saving) 3.127 $37,524
$6,000 (Salvage) 0.437 <u>$2,622</u>
Total <u>$40,146</u>
Net present value = $40,146 - $35,000
Net present value = $5,146
Therefore, the net present value of the proposed investment is closest to $5,146.
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Answer:
$90,000
Explanation:
It is given that :
The pretax accounting income of Bryce Corporation 100,000
The interest on the municipal bonds - 7,000
The depreciation - 5,000
The difference in bad debt expense (3000-1000) <u> +2,000</u>
So the total income of Bryce Corporation $ 90,000
Answer:
The answer is stated below:
Explanation:
The accounting equation is as follows:
Assets = Liabilities + Stockholders' Equity
Analyzing the transactions:
1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity
So,
Assets = Liabilities + Stockholders' equity
+ $4,000 = $0 + +$4,000
2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.
So,
Assets = Liabilities + Stockholders' equity
+ $10,500 = +$10,500 + $0
3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.
So,
Assets = Liabilities + Stockholders' equity
- $1,200 = $0 + -$1,200
Answer:
Checking Account, Savings Account, Safety Deposit Box
Explanation:
Banks are financial institutions that provide a wide variety of financial services to their customers. They accept customer deposits and issue loans. Commercial banks act as intermediaries between the supply side and demand side of credit.
Commercial banks are also known as deposit-taking institutions. Deposits facilities offered by banks include
- Checking accounts,
- Savings accounts,
- Safety Deposit Box
- Money Markets accounts
- Certificated of Deposits accounts
Answer:
Profit will increase by 5,975
Explanation:
From past year we can see that total variable cost will be:
Direct Material+Direct Labor+Variable Over head.
Total Variable Cost =100,000+20% of 20,000
Total Variable costs = 100,000+4000= 104,000
Per Unit Variable cost = Total Variable cost/Total Unit Produced
Per Unit Variable Cost = 104,000/16,000 = 6.5
If Benjamin accepts the offer results will be:
Sale (4,500*8.05) 36,225
Variable Cost (4,500*6.5) (29,250)
Incremental Fixed cost (650)
Incremental admin
and selling cost (350)
Operating Income 5,975
