Answer:
Net present value of the project is closest to $15,542.00
Explanation:
The net present value of the project is the present value of cash inflows minus the initial investment.
The present value of the cash inflows is the yearly cash inflow of $133,000 multiplied by the annuity of 13% for 4 years i.e 2.974
Present value of inflows=2.974*$133,000=$ 395,542.00
initial investment is $380,000
Net present value=$ 395,542.00-$380,000.00=$15,542.00
Answer:
Explanation:
1. April 1, 2018
Dr Notes Receivable 570,000
Cr Cash 570,000
2. Dec 31, 2018
Dr Interest Receivable 47,025
Cr Interest revenue 47,025
*Interest Revenue = Face value*Annual int. rate*Fraction of the year = 570,000*11%*9/12 = 47,025
3. April 1, 2019
Dr Cash 632,700
Cr Notes receivable 570,000
Cr Int receivable 47,025
Cr Int revenue 15,675
*Int revenue = 570,000*11%*3/12 = 15,675
Answer: Designing, analyzing, and altering plans, prototypes, or structures.
Explanation: Ensuring building plans, prototypes, and structures are operating safely, efficiently, and reliably. Assisting team members with project objectives, budgets, and timelines. Establishing project goals.
Answer:
c. $600 interest expense and zero cash outflow from operating activities.
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ total number of months in a year
= $36,000 × 5% × 4 months ÷ 12 months
= $600
This four months are calculated from September 1 to December 31
In the income statement, the interest expense is recorded for $600 but in the operating activity there is no effect
Answer:
Predetermined manufacturing overhead rate (Activity 2) = $10.25 unit of activity
Explanation:
Giving the following information:
Activity 2 $ 18,450 1,100 700 1,800
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 18,450 / 1,800
Predetermined manufacturing overhead rate= $10.25 unit of activity