Answer:
$181,818,181.82
Explanation:
The computation of the current value of this firm is shown below:
= (Firm expectation to earns in cash) ÷ (discount rate - increased cash earning percentage)
= ($10,000,000) ÷ (7.5% - 2%)
= ($10,000,000) ÷ (5.5%)
= $181,818,181.82
In order to find out the current value, we considered all the given information that are mentioned in the question
The answer is
B) Trade Barriers
Answer:
$3,200
Explanation:
With 200 jars of salsa and 400 bags of tortilla chips sold in year 2,
Nominal GDP in year 2, is the value of total sales using year 2 prices
Therefore, Nominal GDP = (200 * 5) + (400 * 5)
= 1,000 + 2,000
= $3,000.
Real GDP in year 2 is the value of total sales using the prices of the base year (year 1, in this case)
Therefore, real GDP = (200 * 4) + (400 * 6)
= 800 + 2,400
= $3,200.
Answer:
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Explanation:
The journal entry is shown below:
Note payable Dr $4,000
Interest expense $120 (($4,000 × 12% × 4 months ÷ 12 months) - $40)
Interest payable $40 ($4,000 × 12% × 4 months ÷ 12 months ÷ 4 month)
To Cash $4,160
(being cash paid is recorded)
Here the note payable, interest payable and interest expense is debited as it decreased the liabilities and increased the expenses while on the other hand the cash is credited as it decreased the assets
