Answer:
"Pension fund" is the appropriate solution.
Explanation:
The term "pension plan" for employers would be a recognized plan or organization which offers an amount of livelihood throughout pensions.
- Sometimes staff, potential employees, or sometimes both pay toward funding or contributions.
- Governments around the world throughout all concentrations give retirement compensation.
Thus the above is the correct answer.
Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer and Explanation:
Debit bad debt expense for $40,000 and credit allowance for uncollectible accounts for $40,000
