It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the fiv
e years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?
New-task purchase is that purchase made by a business of which need has not arisen before. The business didn't made decision to make purchase for this new product or purchase before. The new-task purchase decision is made by the business when a need to purchase is perceived internally or by the clients.
In the given scenario, the need to purchase 'cars as part of its sales compensation' defines the criteria of new-task purchase. In this case, Capitol's need to buy or add 'cars' into its sales compensation represents need to make 'New-task purchase.'
Therefore, the correct answer is new-task purchase.
The interest and principal is both payable at maturity thus we need to accrue the interest payment and create a liability against the amount of interest due. The adjustment is made 6 months from the issue of the note thus the interest for 6 months is due. The entry would be to record 6 month's interest that relates to this year. The interest expense will be,
120000 * 0.065 * 6/12 = $3900
As the payment is not made until maturity we will credit interest payable by this amount.
One thing that can cause a shift in the demand curve is a change in one of the determinants of demand.
The law of demand can be shown as Pat wants to buy more candy bars at $1 than at $2
<h3>What does the law of demand say?</h3><h3 />
The law of demand posits that people will demand more of a good when the price is lower as opposed to when it is higher. This is why Pat will want to buy more candy bars when the price is lower at $1 as opposed to $2.
The demand curve will shift when there is a change in one of the determinant of demand such as the income of people and the price of substitutes.
