Answer:
Net Present Value = $660.98
Explanation:
<em>The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good and profitable investment project and a negative figure implies the opposite. </em>
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
<em>PV of cash inflow = A× (1- (1+r)^(-n))/r
</em>
A- annul cash inflow, r- 8%, n- 3
PV of cash inflow= 41,000× (1- 1.08^(-3))/0.08
= 105,660.98
Initial cost = 105,000
NPV = 105,660.98 - 105,000
= $ 660.98
Answer:
The depreciation charge in 2021 is $ 164,000.00
Explanation:
Annual depreciation charge=cost-salvage value/useful life
cost is $610,000
salvage value is $61,000
useful life is 9 years
Annual depreciation charge=($610,000-$61,000)/9=$61000
The depreciation of charge of $61000 is applicable to years 2018 ,2019 and 2020 respectively.
The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.
revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=
$164,000.00
Answer:
The answer is B.
Explanation:
Capital is what is used to start a business. It is what the owner's contribution in the business. In advanced class, it is called stock or equity. Capital is usually from the owner's savings. But if this money is borrowed either from an individual or a bank, the person is a borrower while the other party is the lender.
Option A is incorrect because money raised from someone makes the person borrowing a borrower and not a saver.
Option C and D are incorrect because the items needed for the business are not consumables, they are needed for the smooth running of the business, hence they are not consumption.
Answer:
increase short-run aggregate supply.
Explanation:
Given that energy is an important part of the production process. It is often considered to be the next in line after labor, thereby having a significant effect on the economy's aggregate supply of real production.
Hence, a decrease in energy prices will decrease the production cost and in turn lead to an increase in short-run aggregate supply, thereby making the SRAS curve shift rightward.
This is because a decrease in energy prices will make it possible for companies to increase their supply of real production at a cheaper cost
Answer:
Interest expense $ 11.15
Explanation:
As the bank uses the average daily balance excluding new purchases we should use that amount to solve for the interest expense.
The rate is one and a half percent therefore, 1.5% --> 0.015
principal x rate = interest
$743 x 0.015 = $ 11.145
