Answer:
What is the initial cost of the project?
the initial cost or initial outlay = $100
how much value is created?
the NPV of the project = -$100 + $50/1.1 + $50/1.1² + $50/1.1³ = $24.34
the NPV basically gives us how much value or wealth is created by the project
and what would you be willing to sell the project for?
selling price = $124.34 (= initial outlay + NPV)
Answer:
D. Guaranteed minimum withdrawal benefit
Explanation:
In the case of the guaranteed minimum withdrawal benefit, the benefit is available for fixed annuity and for a variable annuity.
When the market is down, the policyholder can withdraw the maximum percentage of the annuity value unless the amount of initial investment recouped.
Withdrawal amount should be between of five percent to ten percent of the initial investment held.
Answer and Explanation:
The journal entries required to adjust the balance of cash as follows:
1. Cash Dr $1,128
To Notes receivable $1,100
To Interest revenue $28
(Being the cash is recorded)
Here cash is debited as it increased the assets and credited the notes receivable and interest revenue as it decreased the assets and revenue
2. Service expense Dr $78
Account receivable Dr $280
To cash $358
(being the cash paid is recorded)
here service expense and account receivable is debited as it increased the expenses and assets and credited the cash as it decreased the assets