Answer:
The answer is
A. 26.46%
B. $5,958,354.88
Explanation:
A.
IRR = CFo/(1 + IRR)^0 + CF1/(1 + IRR)^1 + CF2/(1 + IRR)^2 + CF3/(1 + IRR)^3 + CF4/(1 + IRR)^4 + CF5/(1 + IRR)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
IRR = 26.46%
B.
NPV = -CFo + CF1/(1+ r)^1 + CF2/(1 +r)^2 + CF3/(1 + r)^3 + CF4/(1 + r)^4 + CF5/(1 + r)^5
CFo = -$10,000,000
CF1 = $3,000,000
CF2 = $3,500,000
CF3 = $4,000,000
CF4 = $4,900,000
CF5 = $5,000,000
Using a financial calculator;
NPV = $5,958,354.88
Answer:
$4,775
Explanation:
Given that,
Allowance for Uncollectible Accounts = $1,700
Write off in Accounts receivable during the year = $875
Allowance for Uncollectible Accounts required = $5,600
Closing Allowance for Uncollectible Accounts:
= Allowance for Uncollectible Accounts - Write off in Accounts receivable during the year
= $1,700 - $875
= $825
Bad debt expense for 2022:
= Allowance for Uncollectible Accounts required - Closing Allowance for Uncollectible Accounts
= $5,600 - $825
= $4,775
Answer:
A: Supply curve
Explanation:
The supply curve is a graphical illustration of the quantities of goods and services that firms are willing to sell in the market at different prices. As per the law of supply, the higher the price, the more quantities suppliers will be willing to produce. There exists a direct relationship between price and quantity supplied.
The supply curve is upward sloping. It illustrates how the quantity supplied changes at different prices. The supply curves can be described as the graphical presentation of the law of supply.
Answer:
2 transactions reduced ABC's total assets
Explanation:
First transaction that reduced ABC's total assets was the purchase of of equipment worth $1,200 for cash.This transaction drains cash to the tune of $1,200 since it was settled by a cash outflow of $1,200
The second transaction that negatively the business's total assets was the payment of salaries to employees to the tune of $10,000, this also was a cash outflow of $10,000 from the business .
The issue of shares increased the total assets since it was cash inflow.
The purchase of land implies an increase in asset land and an increase in liabilities notes payable.
The receipt of $14,000 cash increases total assets.
The purchase of office supplies on account did not reduce assets but increases it.
Answer:
The Net Present Value of the project is A) -$23,730.21. Since the project is not increasing the wealth of shareholders, and the NPV is negative so we should reject the Project.
Explanation:
If the company invest in the project, its shareholders' wealth will be reduced by $23,730.21. No management would do so because its objective is to increase Shareholders' wealth and not to reduce it.
I have attached an Excel File. Go through it. It will help you to understand the calculations.
Thanks!
