Answer:
$18.9 million
Explanation:
The computation of the proper cash flow amount to use as the initial investment in fixed assets is shown below:
= Land + building + grading
= $5.3 million + $12.8 million + $800,000
= $18.9 million
We simply added the land, building and grading cost so that the proper cash flow i.e to be used for the initial investment could come
PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.
<h3 /><h3>What is purchasing power parity?</h3>
Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.
It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.
Therefore the above statement explains the purchasing power parity.
Learn more about purchasing power parity here:
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Answer:
1. Dr Equipment 36000
Cr Cash 9000
Cr Notes payable 27000
( To record entry of equipment purchase on cash and on promissory note)
Explanation:
Equipment = 36000
Paid in cash = 36000 /4 =9000 and balance 36000-9000=27000 to be signed promissory note.