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3 years ago

All else constant, the net present value of a typical investment project increases when:

Business

1 answer:

nekit [7.7K]3 years ago

3 0

Answer:

The correct answer is letter "B": The rate of return decreases.

Explanation:

Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.

<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>

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2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,00

Pachacha [2.7K]

Answer:

Explanation:

Journal entries

Jan. 1, 2019

Dr Cash (750,000x$35) $26,250,000

Cr Common stock $26,250,000

Jan. 1, 2019

Dr Cash (540,000x$105) $56,700,000

Cr Preferred shares (540,000x$100) $54,000,000

Cr Paid in capital in excess of par-Preferred stock $2,700,000

Dec. 22, 2021

Dr Cash dividend $15,000,000

Cr Dividend payable-Preferred $12,150,000

Cr Dividend payable-Common $2,850,000

Feb. 12, 2022

Dr Dividend payable-Preferred $12,150,000

Dr Dividend payable-Common $2,850,000

Cr Cash $15,000,000

Dividend payable-Preferred = $54,000,000x7.5%x3 years =$12,150,000

Dividend payable-Common = $15,000,000-$12,150,000 =$2,850,000

8 0

3 years ago

Prepare various types of budgets

chubhunter [2.5K]

I’m happy to answer this question if you can give me more detail.

6 0

4 years ago

ane is planning to offer a Groupon for inner tube rentals that she will distribute on hot, sunny, summer days by the river that

sweet [91]

Probability assigned:|

x 30 60 120 180

P(x) .10 .40 .40 .10

Answer:

Jane

Price of Groupon for a revenue of $300 is:

Explanation:

a) Data and Calculations:

Expected Sales volume:

Number of Tubes x 30 60 120 180

Probability P(x) .10 .40 .40 .10

Expected values 3 24 48 18

Total = 93 tubes

Groupon price = $300/93 = $3.23

b) Jane's price for each Groupon will be the rent revenue per day divided by the expected number of tubes to rent daily. The expected number of tubes is derived by multiplying each expected number of tubes by its probability and then summing up the results.

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3 years ago

Each of these items must be considered in preparing a statement of cash flows for Pharoah Company. for the year ended December 3

zavuch27 [327]

Answer:

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Explanation:

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4 years ago

A fleet of refrigerated delivery trucks is acquired on January 5, 2017, at a cost of $900,000 with an estimated useful life of 1

gavmur [86]

Answer:

depreciation expense 2017 = $180,000

depreciation expense 2018 = $144,000

depreciation expense 2019 = $115,200

Explanation:

purchase cost $900,000

estimated useful life 10 years

depreciation expense using double declining method = 2 x regular straight method depreciation rate x purchase cost

depreciation expense 2017 = 2 x 1/10 x $900,000 = $180,000

depreciation expense 2018 = 2 x 1/10 x $720,000 = $144,000

depreciation expense 2019 = 2 x 1/10 x $576,000 = $115,200

8 0

4 years ago