Answer:
option (A) 12%
Explanation:
Data provided :
Purchasing cost of the machine = $ 22,712
Useful life of the machine = 5 years
Net annual cash inflow generated per year = $ 6,300
Now,
at for the value for internal rate of return,
the present value of inflow = Present value of the outflow for the 5 years
let the internal rate of return be r%
thus,
$ 22,712 = 
on solving the above relation, we get
r ≈ 12%
Hence, option A is correct
Answer:
Present Value= $1,772.115
Explanation:
Giving the following information:
You have won the $3 million first prize in the Centennial Lottery.
However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.
We need to use the following formula:
PV= FV/[(1+i)^n]
PV= present value
FV= final value
PV= 3000000/(1.10^78)= $1,772.115
Explanation:
The Journal Entry is given below:-
a. Cash Dr, 8400
Accounts receivable 8400
(Being the Cash received)
b. Supplies Dr, 2500
Office equipment 2500
(Being the reserve entry is recorded)
Supplies Dr, 2500
Accounts payable 2500
(Being the supply is purchased)
Raw materials transform finished goods into cash.
