Answer:
B
Explanation:
Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.
The formula is (cash flow)/(1+r)^i
Revenue - $750,000
Expenses - $650,000
Increase in net income - 100,000
Annual depreciation charge - 650000/5 =$130,000
Discount rate - 12%=3.605
Present cash value =( $100,000+$130000) = $230,000
Please note that depreciation is added back as it is a non cash expenses
Present value of cash flow = annual cash flow * discount rate
=$230,000*3.605 =829,150
Net present value = 829150-650000= 179,150
Answer:
The answer is: The option to buy shares of stock if its price is expected to increase.
Explanation:
A <em>"real option"</em> in management is: a choice managers can take concerning business investment opportunities. <em>Real options</em> usually involve tangible assets (machinery, buildings, inventory, land, etc.) but not financial instruments or stocks.
So the buying or selling of stocks aren´t considered <em>real options</em> in business management.
Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
Answer:
The correct answer is a. an illegal search under 4th amendment protections.
Explanation:
The fourth amendment to the United States Constitution protects two fundamental rights: the right to privacy and the right not to suffer an arbitrary invasion.
The investigation is the procedure in which a government official or agent violates a reasonable expectation of privacy. When it interferes with the right of property of a person we face a case of confiscation. The owner must have a reasonable expectation of privacy regarding the seized objects. A person is considered to have been apprehended when law enforcement personnel use physical force to retain them in such a way that, in a similar situation, any reasonable person would feel deprived of their liberty.
Answer:
If the social cost of an activity exceeds the costs relevant to the decision makers in the activity , there is an external diseconomy . If the benefits of an activity exceed its marginal cost , there is an external economy .
Explanation:
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