Sole proprietorships are often owned by financial institutuins
Answer:
a. Cash 5,684 Sales discounts 116 , Accounts receivable 5,800
Explanation:
The journal entry is shown below:
Cash A/c Dr $5,684
Sales Discount A/c Dr $116
To Accounts receivable $5,800
(Being cash received recorded)
The computation of the account receivable
= $5,800
And, the discount would be
= Accounts receivable × percentage given
= $5,800 × 2%
= $116
The remaining amount would be credited to the cash account i.e $5,684 ($5,800 - $116)
Answer:
MIRR = 16.6%
Explanation:
We have the formula to calculate the MIRR of the project:
+) ![MIRR =\sqrt[n]{\frac{FV}{PV} } - 1](https://tex.z-dn.net/?f=MIRR%20%3D%5Csqrt%5Bn%5D%7B%5Cfrac%7BFV%7D%7BPV%7D%20%7D%20-%201)
In which:
- FV - terminal value, the future value of net cash inflow which is assumed to be re-invested at the rate of cost of capital = WACC = 12.25%
- PV - the present value of the net cash outflows during the investment at the rate of cost of capital = WACC
- n: numbers of years (n=4)
The future value of net cash inflow Year i = Cash inflow × (1 + Cost of capital)^(number of years reinvested)
= Cash inflow × 1.1225^(n - i)
+)
= $424.327
+)
= $403.202
+)
= $381.65
+)
= $360
<em>=> Terminal Value = 424.327 + 403.202 + 381.65 + 360 = $1569.179</em>
<em />
Present Value Year i = 
The project requires the initial investment = - $850 and there are no cash outflows during 4 years of the project
<em>=> PV of the project = PV Year 0 = </em>
<em> = 850</em>
=> MIRR =
= 0.166 = 16.6%