In economic terms, what is the term used for the loss of other alternatives when one alternative is choosen

The internal rate of return method is not subject to the limitations of the net present value method when comparing projects wit

zalisa [80]

Answer: A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.

Explanation:

The internal rate of return is used in calculating the rate of return for the investment of a company. During the calculation, external factors like cost of capital, inflation, risk free rate are all excluded.

The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because it's expressed as a percent rather than the absolute dollar value of present value..

3 0

3 years ago

Fighting Irish Incorporated pays its employees $3,640 every two weeks ($260/day). The current two-week pay period ends on Decemb

krok68 [10]

Answer:

1. Salaries expense A/c $780

To Salaries payable A/c $780

(Being adjusting salary is recorded)

2. Salaries expense A/c Dr $2,860 ($260 × 11 days)

Salary payable A/c Dr $780

To Cash A/c $3,640

(Being the payment is recorded)

3. $780

Explanation:

1. The adjusting entry is presented below:

Salaries expense A/c $780

To Salaries payable A/c $780

(Being adjusting salary is recorded)

The salaries expense is calculated below:

= Salary per day × number of days

= $260 × 3 days

= $780

The number of days is calculated from Dec 28 to Dec 31

2. The entry would be

Salaries expense A/c Dr $2,860 ($260 × 11 days)

Salary payable A/c Dr $780

To Cash A/c $3,640

(Being the payment is recorded)

3. The year-end adjusting balance would be

= Salaries Payable before adjustment + adjustment balance

= $0 + $780

= $780

6 0

4 years ago

Which of the following best explains why the law of supply and demand has an effect on the labor market

Digiron [165]

Labor is a commodity

7 0

3 years ago

We are evaluating a project that costs $1.68 million, has a six-year life, and has no salvage value. Assume that depreciation is

zvonat [6]

Answer:

Best-Case Worst-Case

NPV NPV

PV of cash inflows $2,897,706 $3,187,477

PV of project cost $1,680,000 $1,848,000 ($1,680,000 * 1.1)

NPV $1,217,706 $1,339,477

Explanation:

a) Data and Calculations:

Initial project cost = $1.68 million

Project's estimated life = 6 years

Salvage value = $0

Depreciation expense = $280,000 ($1.68 million/6)

Income Statement:

Sales revenue (90,000 * $37.95) = $3,415,500

Cost of goods sold:

Variable cost (90,000 * $23.20) = 2,088,000

Gross profit = $1,327,500

Fixed costs = 815,000

Income before tax = $512,500

Income tax (21% of $512,500) = 107,625

Net income = $404,875

Add depreciation expense 280,000

Annual cash inflows = $684,875

PV annuity factor for 6 years at 11% = 4.231

PV of annual cash inflows of $684,875= $2,897,706 ($684,875 * 4.231)

Annual cash inflows = $753,363 ($684,875 * 1.1)

PV of annual cash inflows of $753,363 = $3,187,477 ($753,363 * 4.231)

3 0

3 years ago

Life, Inc. experienced the following events in Year 1, its first year of operation: Performed counseling services for $31,600 ca

nikitadnepr [17]

Answer:

The accounting equation states that "Assets=Capital Liabilities"

As a result, the equation here gives $11250 on both sides of the question.

The profit or loss statement gives net income of $11250 as well ,while the balance sheet has $11250 total as assets, the same as equity plus liabilities.

Finally,the statement of cash flow showed increase in cash and cash equivalent in the year as $9400.

The rent expense applicable to year 2 is the balance of prepaid rent which currently stood at $1850

Explanation:

Please find attached spreadsheet showing details regarding all the financial statements prepared in respect of Life Inc.

Download xlsx

7 0

3 years ago