Answer:
Project L is the better project as it has higher NPV and its IRR is 12.70%
Explanation:
- NPV of Project S as followed:
-1,000 + 895.03/(1+10.5%) + 250/(1+10.5%)^2 + 10/(1+10.5%)^3 + 5/(1+10.5%)^4 = $25.5
- NPV of Project L as followed:
-1,000 + 5/(1+10.5%) + 260/(1+10.5%)^2 + 420/(1+10.5%)^3 + 802.5/(1+10.5%)^4 = $67.
<u>=> Project L is the better Project as it has higher NPV.</u>
The IRR is the discount rate that puts the net present value of project's cash flows to 0 (zero).
- IRR of Project L as followed:
-1,000 + 5/(1+IRR) + 260/(1+IRR)^2 + 420/(1+IRR)^3 + 802.5/(1+IRR)^4 = 0 <=> IRR = 12.70%
Answer:
Increase in assets of $8,000 and an increase in liabilities $8,000
Explanation:
The effect of the transaction is shown below with the help of the accounting equation
Liabilities + Owner equity = Assets
$8,000 + 0 = $8,000
($10,000 - $2,000)
Therefore from the above calculation, we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity
Answer:
d. The determination of the principal.
Explanation:
An independent contractor is one who is not bound by any affiliations to either a company, a country or an ideology.
He is hired to do a specific work and based on his contract, paid after, before or during the work.
The determination of the principal in no way affects his work as he isn't bound to the company as an employee and is a free agent. He is a professional who is not slack in his work and works efficiently to earn his pay
Answer:
$532.73
Explanation:
we need to determine the present value of the bond:
Present value = future value / (1 + r)ⁿ
where:
- future value (FV) = $1,000
- r = 6.5%
- n = 10 years
PV = $1,000 / (1 + 6.5%)¹⁰ = $1,000 / 1.065¹⁰ = $1,000 / 1.8771 = $532.73
Answer:
Affirmative action
Explanation:
This is a term that describes effort or action to recruit disadvantaged groups or groups previously excluded. This is also used to ensure gender balancing in organisations. Some organisations consciously seek to fill up top positions at their board with women. The Beijing conference on women empowerment sought for increased women participation in key decision positions.
ABC effort can be described as an Affirmative action towards recruiting a group that was previously disadvantaged or discriminated upon previously.
