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UkoKoshka [18]
3 years ago
8

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payba

ck?
WACC: 10.00%
Year 0 1 2 3
---------------------------------------------
Cash flows -$900 $500 $500 $500 (Points : 10)
1.88 years
2.09 years
2.29 years
2.52 years
2.78 years
Business
1 answer:
Semmy [17]3 years ago
5 0
We use the formula to solve for the discounted payback period:
DPP = ln ( 1 / (1-P x r /A) ) / ln (1 + r)
From the problem
P = 900
r = 0.1
A = 500

Substituting:
DPP = ln (1 / (1 - 900(0.10)/500) / ln ( 1 + 0.10)
DPP = 2.09 years
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Answer:

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July 2021

Cash                                 17,500

Loan payable                                                        17,500

June 30, 2022

Loan Payable                   17,500

Interest payable                 2,100

Cash                                                                     19,600

Adjusting Entry's

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Interest expense               1050

Interest Payable                                                            1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0
3 years ago
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Among the costs Kunee Company incurred during the month of August were the following: $15,000 - coolant used in the headquarters
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Answer: Option (B) is correct.

Explanation:

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3 years ago
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Answer:

2. $3600

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