Answer:
NPV= $1,983,471.1
Explanation:
Giving the following information:
To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
The formula is:
NPV= -Io + ∑[Rt/(1+i)^t]
where:
R t =Net cash inflow-outflows during a single period t
i=Discount rate of return that could be earned in alternative investments
t=Number of timer periods
NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)
NPV= $1,983,471.1
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
oil plataform 450,000 debit
ARO liability oil Plataform 450,000 credit
Explanation:
We will recognize the ARO at fair value, and then recongize an interest expense each year to make his balance equal to 1,000,000
The ARO will be capitalized into the oil plataform long-term assets
and depreciate over the past of time.
Answer:
B
Explanation:
The Internal Rate of Return (IRR) is the profitability or the ability to generate revenues of the money that remains invested during the life of a proyect. It is also known as the discount rate or cost rate that makes the Net Present Value (NPV) equal to cero. When the NPV is greater than cero, then the proyect creates value ( it is attractive to investors) if it is less than cero, then the proyect destroys value and investors are going to loose money. If the NPV is equal to cero, then investors recover their investment but they do not obtain gains nor losses. The minimum rate of return is the one in which at least investors obtain the same amount ( in present value) of their investment; that is the internal rate of return (IRR).
Answer:
$500 favorable
Explanation:
Given;
Number of units produced = 10,800 units
Actual indirect material costs = $13,000
Reflected indirect material costs for 144,000 units = $180,000
Now,
Per unit reflected indirect material costs = $180,000 ÷ 144,000
= $1.25 per unit
Therefore,
Budgeted indirect material cost for actual units produced
= $1.25 × 10,800
= $13,500
since,
the budgeted cost for indirect material cost for actual units produced is more than the actual indirect material cost, therefore
the indirect material costs in October is favorable
amount = Budgeted cost - Actual cost
= $13,500 - $13,000 = $500 favorable
