Answer:
C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.
Explanation:
NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.
Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.
Thus, false statement is
Statement C
Answer:
B. a debit to Interest Expense for $ 42 comma 750.
C. a credit to Cash of $ 137 comma 750.
Explanation:
Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.
As per given data
Principal Payment = $95,000
First Interest payment = $475,000 x 9% = $42,750
Total Payment = $95,000 + $42,750 = $137,750
Journal Entry for first payment
Dr. Interest Expense $42,750
Dr. Not Payable $95,000
Cr. Cash $137,750
<span>The cost of borrowing money is called the interest. Interest is what you pay to the loan company or lender when you borrow money from them. The interest is what they are charging when they give you money for a purchase now while you pay them back overtime. </span>
<u>Answer: </u>Option A
<u>Explanation:</u>
Statistics is the based on the study of collection of data and presentation of data in an organized way. Statistics in the speech is done through collecting facts on research. By bringing in the statistics into the speech it has the context and the credibility of the speech can be done effectively.
Statistics can prove the realism in the speech and it has emotional impact on the audience. Statistical figure is 100 million hamburger which is 3 million miles that is fifteen times as far as moon these create a memory for the audience and they remember it for a long time.
Answer:
-2.33%
Explanation:
An investor who was not as astute as he believed invested $263,000 into an account 11 years ago,
Given that,
Current value of account, future value = $202,800
Value of invested amount, Present value = $263,000
Time = 11 years
(1 + r) = 0.9766466684
r = 0.9766466684 - 1
= - 0.02335333157
= - 2.33%
Therefore, the annual rate of return on this account is -2.33%.
