Answer:
(D) $71,446
Explanation:
we will calcualte the present value for an 11 payments annuity-due (there is eleven payment of 10,000 if we count the one at purchase date) which couta is 10,000 discounted at 10%
C 10,000
time 11
rate 0.1
PV $71,445.6711
rounding to the nearest dollars: 71,446
Answer:
I would recommend Machine 7745
Explanation:
Machine 7745
initial outlay = $8,000
operational costs per year = $300
depreciation cost per year = $700
salvage value (at year 10) = $1,000
total costs per year (1 - 9) = $1,000
total costs year 10 = $0
using an excel spreadsheet, the IRR = 2%. Since you are analyzing costs only, not incremental revenue, then you must select the project with the lowest IRR.
Machine A37Y
initial outlay = $8,000
operational costs per year = $260
depreciation cost per year = $800
total costs per year (1 - 10) = $1,060
using an excel spreadsheet, the IRR = 4%
Answer:
currently there will be no benifits because of the Corona Virus because the stock market is crashing.
Answer:
Dr Merchandise Inventory Cr Cash
Explanation:
Based on the information given in a situation where purchases of merchandise are made for cash the transaction will be recorded in the journal entry by debiting Merchandise Inventory and Crediting Cash reason been that MERCHANDISE are current asset and Secondly merchandise are anticipated to be either sold out, used or turn them into cash within a period of one year, although it sometimes depends on the method of payment in which the merchandise was been paid for , which is why we have to Debit Merchandise Inventory Account and Credit Cash Account.
Hence:
Journal entry
Dr Merchandise Inventory
Cr Cash
