Answer:
Reject,
Explanation:
When calculating the IRR, I got 16.6%, which is less than the wacc. This means that the rate of return is lower than what it costs 18% wacc.
I think the answer should be reject, less.
Answer:
simple contract and specialty contract
Answer:
Option c (DM = about 1.13 DG) is the right approach.
Explanation:
Given:
DM price,
= 2.0583
DG price,
= 2.3194
Now,
By cross rates, the DG price of DM will be:
= 
= 
Thus the above is the correct option.
Answer: The adjusting entry would be: Debit Bad debt expense $24,380; Credit Allowance for doubtful accounts $24,380.
Explanation: Since aging of the accounts receivable shows that 7% approximately of the outstanding receivable of $374,000 will be uncollectible. It then means $26,180 (7%*$374,000) will be uncollectible. Meanwhile, Tanning Company already has a credit balance of $1,800 in the allowance for doubtful accounts, therefore, an adjustment of $24,380 ($$2,180 - $1,800) has to be made.
Answer:
The Agriculture Department argues that the subsidy increases the "cost" of planting and that it will reduce supply and increase the price of competitively produced agricultural goods.
Explanation:
The department is correct with the agreement that subsidies increase the cost of planting, as the subsidy will decrease with the decrease in area planted and this will increase the output available.
As the subsidy is paid for un-planted area it will be increasing cost, and decreasing quantity of output.
This is clearly true, as they are directly related and this will increase the prices as supply will be low and high demand.
This need to be regulated properly, as no subsidy will discourage farmers, but high subsidies will also discourage farmers.
