Answer:
break even is when an organisation doesn't make profit nor loss.
Answer:
$863,689.50
Explanation:
The computation of the present value of the terminal value is shown below:
The terminal value at the end of the third year is
= Third year Cash flows × (1 + growth rate) ÷ (required rate of return - growth rate)
= $64,000 × (1 + 2%) ÷ (8% - 2%)
= $1,088,000
Now its present value is
= terminal value at the end of the third year ÷ (1 + rate of interest)^number of years
= $1,088,000 ÷ (1 + 8%)^3
= $863,689.50
This is the answer but the same is not provided in the given options
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Cr. Dr.
Equipment $66,880
Account Payable $62,600
Cash $4,280
Explanation:
All the costs incurred to make asset usable should be capitalised.
Equipment Cost = Purchase Price + Sales Tax + Freight Charges + Insurance Charges + Installation
Equipment Cost = $59,000 + $3,600 + $840 + $1,040 + $2,400
Equipment Cost = $66,880
Answer:
9.05%
Explanation:
The formula that would be used to fund the interest rate =
[(FV / PV)^1/N ] - 1
FV / PV = Future value/ present value = 2 (The investment offers to double the investment)
M = 5 (30 months / 6 months )
(2 ^1/8) - 1 = 0.090508 = 9.05%
I hope my answer helps you
