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makvit [3.9K]
3 years ago
14

If $ 12 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 3 comma 600 at the en

d of each of the next four years. What is the present value of this business opportunity if the interest rate is 3​% per​ year? A. $ 2 comma 210
Business
1 answer:
Sliva [168]3 years ago
4 0

Answer:

PV of business opportunity = $1,381.55

Explanation:

<em>The present value of the business opportunity is the difference between the present value of the streams  cash inflow and the initial investment cost </em>

PV of streams of cash inflows:

PV of cash flow =A ×  (1- (1+r)^(-n) )/r

A- 3,600, r- 3%, n- 4

= 3,600 × (1 -(1.03^(-4) )/0.03

=$13,381.55

PV of the business opportunity

= $13,381.55 - 12,000

= $1,381.55

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Which of the following transactions will REDUCE your checking account balance immediately?
tino4ka555 [31]

Answer:

the answer B

Explanation:

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3 years ago
Assume that at December 31, 2015, management determined that it will be unable to collect $1,200 owed to it by its customer Acme
garik1379 [7]

Answer:

account receivables 600 debit

    allowance for doubful account 600 credit

--to revert the write-off--

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We use the allowance account as previously the company did as follows:

allowance for doubful account 1,200 debit

  account receivables                   1,200 credit

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We reverse this by the amount paid by Acme which is 600

Then, we record receiving the cash (debit) and decreasing the account receivable (credit)

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3 years ago
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Ket [755]

Answer:

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