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Dmitrij [34]
3 years ago
10

Nikea Inc. wants to buy a machine for $50,000. It expects a return of $20,000 in the first year, $24,200 in the second year and

$25,000 in the third
year. The discount rate is 10 percent. What is the Net Present Value (NPV) of this project?
The NPV of the project is $​
Business
1 answer:
maxonik [38]3 years ago
3 0

Answer:

$2000

Explanation:

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Dufner Co. issued 15-year bonds one year ago at a coupon rate of 7.1 percent. The bonds make semi-annual payments. If the YTM on
saveliy_v [14]

Answer:

Total $1,173.2544

Explanation:

The price of the bond will be equivalent to the coupon payment and maturity discounted at the YTM

<em><u>Coupon payment PV will be an annuity:</u></em>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 35.50 (1,000 x 7.1% / 2 )

time 30 (15 years x 2 payment per year)

rate 0.027 (YTM /2 )

35.5 \times \frac{1-(1+0.027)^{-30} }{0.027} = PV\\

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<em><u> The maturity will be the present value of a lump sum</u></em>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.027

\frac{1000}{(1 + 0.027)^{30} } = PV  

PV   449.66

We add bot h to gett the market value

PV c $723.5919

PV m  $449.6625

Total $1,173.2544

3 0
4 years ago
On September 1, ABC Company borrowed $50,000 on a 6%, 9-month note payable to XYZ National Bank. Given no previous adjusting ent
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Answer:

c. debit to Interest Expense of $1,000.

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The adjusting entry is as follows:

Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000

     To Interest payable $1,000

(Being the interest expense is recorded)

Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities

Therefore the correct option is c.

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