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In-s [12.5K]
4 years ago
6

Turk Manufacturing is considering purchasing two machines. Each machine costs $9,000 and will produce cash flows as follows:

Business
1 answer:
iogann1982 [59]4 years ago
5 0

Answer:

B) Only Machine A is acceptable.

Explanation:

NPV of Machine A =  $9,000 - ($5,000 * 0.8696) - ($4,000 * 0.7561) - ($2,000 * 0.6575) = $312.60

NPV of Machine B =  $9,000 - ($1,000 * 0.8696) - ($2,000 * 0.7561) - ($11,000 * 0.6575) = - $614.30

Since Machine B NPV is negative at minus $614.30, Machine B is therefore not acceptable. Only Machine A is acceptable because it has a positive MPV of $312.60.

The correct option is therefore B) Only Machine A is acceptable.

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Andrews Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. Th
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Answer:

The journal entry which is to be recorded for the dishonored note is shown below:

Explanation:

The journal entry which is to be recorded for the dishonored note is as follows:

Accounts Receivable A/c..............................Dr $2,075

       Notes Receivable A/c...................................Cr $2,000

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Being the note which is received got dishonored

As the note got dishonored so the accounts receivable account will be debited against the notes receivable account and the account of interest revenue is also credited.

Working Note:

Interest revenue = Amount of notes receivable × Rate  × Months / Total number of months

= $2,000 ×5%  × 9/12

= $75

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4 years ago
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7 0
3 years ago
Why would it be a good idea to mix stocks and bonds in your investment portfolio?
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Answer:

To have more variety and just more in general!

Explanation:

Hope this helps!

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3 years ago
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