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3 years ago

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

1 answer:

6 0

The increasing returns would be a situation in which the firm increases their workforce and other inputs in a matter of having to increase the workforce by five percent and having to increase the output in a total of eight percent.

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A new investment project currently under consideration has a negative net present value of $85,000. The project has a life of 10

KIM [24]

Answer:

correct option is $12,668

Explanation:

given data

net present value = $85,000

time = 10 year

rate of return = 8%

solution

we apply here formula for Present Value of annual additional cash flow that is

Present Value of annual additional cash flow = Annual cash flow × present value factor for an annuity ............................1

put here value

$85,000 = Annual cash flow × 6.71

Annual cash flow = $12,668

so here correct option is $12,668

3 0

3 years ago

Lester's just signed a contract that will provide the firm with annual cash inflows of $28,000, $35,000, and $42,000 over the ne

Free_Kalibri [48]

Answer:

$64,474.20

Explanation:

As for the information provided,

discount rate = 7.25%

First payment will be made at the end of year 1

Discounting factor = $\frac{1}{(1+0.0725)^1} = 0.9324$

Thus, current value of payment = $28,000 \times 0.9324$ = $26,107.20

Discounting factor for receipts =

Year 1 = $\frac{1}{(1+0.0725)^1} = 0.9324$ = $28,000 $\times$ 0.9324 = 26,107.20

Year 2 = $\frac{1}{(1+0.0725)^2} = 0.8694 = 35,000 \times 0.8694 = 30,429$

Year 3 = $\frac{1}{(1+ 0.0725)^3} = 0.8106 = 42,000 \times 0.8106 = 34,045.20$

Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20

5 0

3 years ago

The answer for number 1, and 2 please

crimeas [40]

Answer:

where's the picture I cant find it

8 0

3 years ago

Read 2 more answers

Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables

Ede4ka [16]

Answer:

The accounting entry for each transaction is given below.

Gibson contributed $10,000 to the business in exchange for capital.

Debit Cash Asset $10,000

Credit Capital $10,000

b. Purchased equipment for $5,000 on account.

Debit equipment Asset $5,000

Credit Payable Liability $5,000

c. Paid $400 for office supplies.

Debit payable $400

Credit Cash Asset $400

d. Earned and received $2,500 cash for service revenue.

Debit Cash Asset $2,500

Credit Income $2,500

e. Paid $400 for wages to employees.

Debit Wages expense $400

Credit Cash Asset $400

f. Gibson withdrew $1,000 cash

Debit Capital $1,000

Credit Cash Asset $1,000

.g. Earned $1,000 for services provided. Customer has not yet paid.

Debit Receivable $1,000

Credit Service Income $1,000

h. Paid $1,000 for rent.

Debit Rent expense $1,000

Credit Cash Asset $1,000

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

Debit Utility expense $250

Credit payable $250

8 0

3 years ago

Two individuals who were previously sole proprietors form a partnership. Property other than cash that is part of the initial in

UNO [17]

Answer:

D) Property's fair value at the date of the investment.

Explanation:

When new business is formed from closing the old one, all assets are recorded at fair value.

Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.

Therefore, correct statement is

D) Property's fair value at the date of the investment.

7 0

3 years ago