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Nutka1998 [239]
3 years ago
15

A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6

0 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years. The investment has zero salvage value. QS 24-15 Net present value LO P3 The company requires an 8% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Should the project be accepted?
Business
1 answer:
tatyana61 [14]3 years ago
4 0

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80  

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20  

The investment has a positive NPV,hence should be accepted

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Answer:

What is allowance for doubtful debt?

This represents management's estimate of the amount of accounts receivable that will not be paid by customers. They are amount owed by debtors, whose likelihood of collection is not certain.

1 Bad debts expense Dr   ($18,000 × 0.25%)  $45  

              To Allowance for Doubtful Accounts $45

(Being the bad debt expense is recorded)

2.  Bad debts expense $45        

          ($72 - $27)

              To Allowance for Doubtful Accounts   $45

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3 Bad debts expense    $105      

           ($72 + $33)

           To Allowance for Doubtful Accounts $105

(Being the bad debt expense is recorded)

4 Allowance for Doubtful Accounts $15  

           To Accounts Receivable  $15

(Being the allowance for doubtful accounts is recorded)

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Explanation:

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2 years ago
Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and
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Answer:

1. d. Both a and c.

2. True.

Explanation:

Marsha and Shelby both are U.S. citizen. Marsha can claim Income credit once she is 25 years older up to 65 years of age. The individual below 25 years of age cannot claim income credit according to the tax law prevailing in U.S.

8 0
3 years ago
If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected in
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Boom general operating profits in all four geographic areas -- the resulting growth in working earnings will improve general net income and assist increase the EPS, using the business enterprise's stock fee upward.

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The inventory price is a relative and proportional price of an organization's worth. consequently, it only represents a percent alternate in an organization's market cap at any given factor in time. Any percentage adjustments in an inventory fee will bring about the same percent trade in a company's marketplace cap.

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5 0
1 year ago
Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sol
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Answer:

Charu Khanna

The Net capital loss is:

= $2,000.

Explanation:

a) Stock Transactions and Data during 2019:

Stock                                  Date      Date Sold  Sales Price ($) Cost Basis ($)

                                      Purchased

4,000 shares Green Co. 06/04/07 08/05/19       12,000              3,000

500 shares Gold Co.        02/12/17 09/05/19      54,000            62,000

5,000 shares Blue Co.   02/04/08  10/08/19       18,000            22,000

100 shares Orange Co.     11/15/18   07/12/19       19,000            18,000

Total                                                                   $103,000       $105,000

Net capital loss:

Long-term capital loss = $3,000

Short-term capital gain = $1,000

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3 years ago
Suppose the price of tablets increases by 8 percent and producers respond by increasing the quantity supplied by 20 percent. The
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Answer:

The answer is: C) 2.5 and producers are very responsive to the price change.

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The price elasticity of supply refers to what percentage does the quantity supplied change when the price of the good changes in 1%. It is calculated using the following formula:

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Price elasticity of supply of tablets = 20% / 8% = 2.5

For every 1% that the price increases, the quantity supplied will increase by 2.5%.

Since PES > 1, the supply is very price elastic.

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