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Svetllana [295]
3 years ago
12

Justice Enterprises is evaluating the purchase of a new computer net system would cost $24,000 and have a useful life of Syears.

At the end of the systems of a new computer network system. The new would have a residual value of $2000. Annual operating cost savings from the new sys be $8500 per year for each of the five years of its life. Justice Enterprises has a minimum required rate of return of 12% on all new projects. The net present value of the new system would be closest to: (Round any intermediary calculations and your final nearest dollar.) savings from the new system would diary calculations and your final answer to the Present Value of $1 Periods 10% 0.751 0.683 0.621 0.564 12% 0.712 0.636 0.567 0.507 14% 0.675 0.592 0.519 0.456 16% 0.641 0.552 0.476 0.410 16% Present Value of Annuity of $1 Periods 10% 2.487 3.170 3.791 4.355 12% 2.402 3.037 3.605 4.111 14% 2.322 2.914 3.433 2.246 2.798 3.274 3.685 T 3.889 A) $5509. B) $7777 C) $6643 D) $31,777
Business
1 answer:
Sergeeva-Olga [200]3 years ago
4 0

Answer:

closest to: B) $7777

Explanation:

NPV ( net presetn value) cashflow - investment

<u>cost savings present value (ordinary annuity):</u>

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

C   $8,500

time         5 years

rate  0.12

8500 \times \frac{1-(1+0.12)^{-5} }{0.12} = PV\\  

PV $30,640.5977  

salvage value present value:

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

Salvage  $2,000  

time   5

rate  0.12

\frac{2000}{(1 + 0.12)^{5} } = PV  

PV   1,134.85  

NPV: 30,640.60 + 1,134.85  - 24,000 = 7,775.45

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Ivy Ledbetter Lee, one of the founders of public relations and often dubbed "Poison Ivy," actually believed that honesty and dir
Elden [556K]

Answer: True

Explanation: Ivy lee is the father of public relations theory and suggested that for having healthy relation with clients in any business, the management in business should be honest and direct towards the client as this will help to win their confidence .

As per his understandings, deception with the client will not last long in the market leading to poor image.

4 0
3 years ago
The Giles Agency offers a 12% trade discount when providing advertising services of $1,000 or more to its customers. Audrey’s An
frozen [14]

Answer:

Please refer the journal entries below

Explanation:

Trade Discount:

There is no accounting entry for the trade discount, trade discount is simply deducted from the total amount and the entry is passed after incorporating the trade discount

1) Audrey’s Antiques

Since Audrey’s Antiques have taken the services amounting more than $1,000, they are eligible for the trade discount of 12% i.e. ( 12% of $1,900) = $228, hence Income will be recorded at ($1,900 - $228) = $ 1,672

Advertising Fee Receivable      Debit      $ 1,672

Advertising Fee Income             Credit     $ 1,672

2) Michael’s Motors

Since Michael’s Motors have taken the services amounting less than $1,000, they are not eligible for the trade discount of 12%

Advertising Fee Receivable      Debit      $ 540

Advertising Fee Income             Credit     $ 540

3 0
3 years ago
"A corporation has annual sales of​ $18 million, total assets of​ $4 million, a debt ratio of​ 40%, depreciation expense of​ $20
oee [108]

Answer:

$2.4 million

Explanation:

The total assets of the firm are funded by both debt and equity,hence, the total assets is the same as total equity plus total debt based on the accounting equation formula below:

total assets=equity+debt

tota assets=$4 million

equity=unknown

debt can be  derived using the debt ratio as shown thus:

debt ratio=debt/total assets

debt ratio=40%

debt=unknown

total assets=$4 million

40%=debt/$ 4 million

debt=40%*$4 million

debt=$1.6 million

$4 million=equity+$1.6 million

equity=$4 million-$1.6 million

equity =$2.4 million

6 0
3 years ago
Helena corporation declared a 2-for-1 stock split on 8,000 shares of $6 par value common stock. if the market price of the stock
Kryger [21]

In a 2 for 1 stock split, par value and market value will be 1/2 of what they were prior to the split and number of shares will be two times what it was.

So,

 

par value will be 6 x 0.5 = $ 3.00 

market value will be 25 x 0.5 = $ 12.50 

number of shares  8,000 x 2 will be 16,000 shares

3 0
3 years ago
Orlin purchases a refrigerator, on credit, from a door to door salesman. Orlin only has a 5th grade education, and the terms of
mote1985 [20]

Answer: the doctrine of unconscionability

Explanation:

The doctrine of unconscionability is a defense that is against enforcing a contract. From the question, we are informed that Orlin bought a refrigerator, on credit, from a salesman and the salesman want him to pay 10 times the worth of the refrigerator.

In this scenario, the contract is deemed to be unfair and also oppressive to Orlin, thus he a find it unconscionable and therefore he can refuse to enforce it. Therefore, if he wants to challenge the contract’s terms, the doctrine of unconscionability will be used.

6 0
4 years ago
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