Huh?
that's not even a question lol
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:
Accounts Payable -Yes
Salaries and wages payable - Yes
Explanation:
Accounts Payable is the money which the business owes its suppliers. It is a liability.
Salaries and wages refers to the debts of the business to its employees. It is also a liability.
Answer:
NPV is positive,the project should be accepted
Explanation:
In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.
The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.
Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80
Net present value=$ 151,509.80-$125,374.60=$ 26,135.20
The investment has a positive NPV,hence should be accepted
The interest per year for $5,000 to become $9,110 after 30 years is 2.02% compounded continuously.
