Answer:
Option A is the cheapest.
Explanation:
Giving the following information:
The engineering department estimates costs of $450,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $43,000 each year. As an alternative, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 15 years for $225,000 per year.
We need to use the following formula and chose the smallest net present value:
NPV= Io +∑ [Cf/(1+i)^n]
Option A:
Io= 407,000
Year cost= 43,000
NPV= 734,061
Option B:
Yearly cost= 225,000
NPV= 1,936,368
The answer is 15.989 (15.99 rounded up).
456.85*3.5=1598.975
1598.975/100=15.98975
Answer:
$4,546.35
Explanation:
We use the PMT formula that is to be presented in the attachment. kindly find out below:
Provided that,
Present value = $36,875
Future value or Face value = $0
Rate = 4%
NPER = 10 years
The formula is shown below:
= -PMT(Rate;NPER;PV;FV;type)
So, after solving this, the annual payment required is $4,546.35
Answer:
Dr amortization expense $6,900
Cr Accumulated amortization $6,900
Explanation:
The adjusting journal on 31 December is to reflect the amortization charge of $6,900 in both accumulated amortization and amortization expense accounts.
Find attached t-accounts,note that amortization expense account would not have a closing balance as the amount of amortization is written to income statement