Which of the following statements about the admission process is FALSE?

An existing electrical power line needs to have its capacity increased, and this can be done in either of two ways. The first me

nekit [7.7K]

Answer:

3 years

Explanation:

<u>First method</u>

The PV of the investment can be written as:

PV1 = $15,000 + $32,500/(1+0.06)^n

<u>Second method</u>

The PV of the investment can be written as:

PV2 = $23,000 + $23,000/(1+0.06)^n

After n years both projects will be economically equal. Hence their present value must be equal PV1 = PV2

$15,000 + $32,500/(1.06)^n = $23,000 + $23,000/(1.06)^n

$23,000 - $15,000 = $32,500/(1.06)^n - $23,000/(1.06)^n

$8,000 = $9,500/(1.06)^n

(1.06)^n = $9,500/$8,000

(1.06)^n = 1.1875

Taking log on both sides we get:

nlog1.06 = log 1.1875

n = log 1.1875/log 1.06

n = 0.07463361829/0.02530586526

n = 2.94926166417121

n = 3

So, the answer is 3 years

3 0

2 years ago

Deposits in transit Select one: a. have been recorded on the company's books but not yet by the bank. b. have not been recorded

mojhsa [17]

Answer:

a. have been recorded on the company's books but not yet by the bank

Explanation:

The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.

So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts

7 0

3 years ago

On March 1, 2019, Baltimore Corporation had 60,000 shares of common stock outstanding with a par value of $5 per share. On March

Eva8 [605]

Answer:

The retained earning would be debited by ($60,000)

Explanation:

According to the given data we have the following:

Number of shares outstanding=60,000

par value of $5 per share

stock dividend declared=cc

Therefore, to calculate the amount either (debited) or credited to retained earnings we would have to make the followin calculation:

Dividend value=Number of shares outstanding×par value of $5 per share×stock dividend declared

Dividend value=60,000×$5×20%

Dividend value=($60,000)

Therefore, as the dividend paid reduces retained earnings, the retained earning would be debited by ($60,000)

3 0

3 years ago

How do price ceilings and price floors restrict the free exchange of prices?

Yuki888 [10]

Price ceilings are the limit of the prices to go high above the given ceiling while the price floor limit the prices to go below the given amount. The two restrict the free exchange of prices by putting a range of prices allowable only for a certain product. The prices are already limited between the price floor and the price ceiling.

8 0

3 years ago

Assume that the bank says Frank can have the money and would like to work with him on the type of debt that he will be incurring

IceJOKER [234]

Answer:

It is better for Frank, to go for a line of credit

Explanation:

It is better for Frank, to go for a line of credit, as this will enable him to have the lowest interest payment. This will also help him to draw for his services and also enable him to be repaying the in small amounts so that the operations are not affected.

7 0

3 years ago