Answer:
a. 9.43%
Explanation:
IRR is the rate of return that makes initial investment equal to present value of cash inflows
Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r
1250 = 325 * [1 - 1 / (1 + r)^5] /r
Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%
1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943
1250 = 325 * 3.846639
1250 = 1,250
Therefore, The project IRR is 9.43%
Answer:
None of the above options are correct
Depletion amount in 2019 = $52.480
Explanation:
The Cost of Quarry (Depletion Base ) = $164000
Estimated Salable Rock (Units Extracted) = 20000 tons
Depletion Rate = Depletion Base /Units Extracted
Depletion Rate for 2018 = 164000/ 20000 = $8.2/ton
Units Extracted in 2018 = 4000 tons
Depletion amount in 2018 = Depletion Rate for 2018 *Units Extracted in 2018
Depletion amount in 2018 = $(8.2*4000) = $32800
In 2019
Depletion Base in 2019 = The Cost of Quarry - Depletion amount in 2018 = 164000-32800 = $131200
Estimated Salable Rock in 2019 (Units Extracted) = 20000 tons
Depletion Rate for 2019 = 131200/ 20000 = $6.56/ton
Units Extracted in 2019 = 8000 tons
Depletion amount in 2019 = $(6.56*8000) = $52480
I think it could either be the first or third option, but I thinking the correct one should be the first option. Hope this helped :)
Answer: $15,060
Explanation:
From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.
We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:
= $50,000 × 40% × 9/12
= $50,000 × 0.4 × 0.75
= $15,000
The closest figure we have close to that is $15,060 which is option B
Answer:
The correct answer is letter "A": economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero profit.
Explanation:
Normal profit is an economic term that means zero economic profits. To an economist, this is normal since total revenue equals total cost which includes both explicit and implicit costs. It differs from the accounting profit or zero profits since the latter does not take into consideration implicit cost.
