The correct answer to this question is this one: "D. The federal government did not levy any taxes on the TVA." The reason why the electricity generated by the TVA cheaper than that generated by private power companies is because the federal government did not levy any taxes on the TVA.
Answer:
Profitability index for Project 1 is 3.17
Profitability index for Project 2 is 1.75
The company should prefer project 1 based on the profitability index.
Explanation:
We calculate the profitability index by dividing the present value of future cash flows by the initial investment. So the profitability index for project 1 will be its future cash flows divided by the initial investment.
1,300,000/410,000=3
Profitability index for Project 1 is 3.17
We will do the same to calculate the profitability index for Project 2
7,000,000/4,000,000=1.75
Profitability index for Project 2 is 1.75
Answer:
immune to liability
Explanation:
Based on the information provided within the question it can be said that the Under federal law, Broadband is immune to liability. This means that they are not obligated to take responsibility for the consequences that may arise from the information that they have provided. Similar to the The Whistleblower Protection Act of 1989 which protects employees from liability when providing information about the illegal actions of their employer.
Answer:
Bond discount of $800
Explanation:
The computation of the credit amount of bond discount is shown below
= (Amount × effective interest rate) - (Face amount × interest rate)
= ($195,000 × 4%) - ($200,000 × 3.5%)
= $7,800 - $7,000
= $800
Since it is on semi annual interest rate so the interest rate by 2
Hence, the company should credit the bond discount for $800
