<span>Given that,
Promissory note A = 5,500
Discount rate i = 12%
i = 12/100
Term n= 5 months
we know that,
1 year = 12 months
5 months= 5/12
So we get,
A = 5,500
i = 12/100
n= 5/12
To find the ada's proceeds on the loan formula is,
Proceeds=A(1+i)^n ........... (1)
Put the value of A,i,n in equ (1)
Proceeds=5500(1+12/100)^5/12
=5500(1+0.12)^0.417
=5500(1.12)^0.41667
=5500(1.04835)
Proceeds=5765.94
Therefore $5765.94 Proceeds on the loan</span>
Asset debits are recorded in the left debits column.
Answer: C. $0
Explanation:
When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.
Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.
Procrastinating
Procrastination is the avoidance of doing a task which needs to be accomplished. It is the practice of doing more pleasurable things in place of less pleasurable ones, or carrying out less urgent tasks instead of more urgent ones, thus putting off impending tasks to a later time.
