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Ksenya-84 [330]
3 years ago
12

Perit Industries has $190,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat

ives are: Project A Project B Cost of equipment required $ 190,000 $ 0 Working capital investment required $ 0 $ 190,000 Annual cash inflows $ 28,000 $ 48,000 Salvage value of equipment in six years $ 8,900 $ 0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:

1. Compute the net present value of Project A. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.)

2. Compute the net present value of Project B. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.)

3. Which investment alternative (if either) would you recommend that the company accept?

Business
1 answer:
Wewaii [24]3 years ago
3 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Lori contracts to buy coffee beans for her store from Mike. The contract price is $7.50 per pound of Costa Rican coffee. Mike br
Ksju [112]

Answer:

the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee

Explanation:

Lori wanted to buy coffee beans for that she paid the contract price of $7.50 per pounds to mike. Mike has breached the contract which is why Lori has lost $7.50.  Now to buy coffee beans she will contact some other supplier and pay them to secure alternative coffee. So, in total Lori's damages are the contract price of coffee and what she will pay some other vendor to secure coffee beans.

4 0
3 years ago
When the government implements programs such as progressive income tax rates, which of the following is likely to occur? a. equa
kozerog [31]

Answer:

The correct answer is b. equality is increased and efficiency is decreased.

Explanation:

Progressive taxes are considered those in which the economic capacity of the person or the company is taken into account, that is: the higher the economic capacity the value to be paid for the tax increases. The objective of this type of taxes is that the payments made by people or companies are made proportionally to their income. Direct taxes are usually progressive.

An example of a progressive tax is the income tax, in the case of natural persons the value to be paid for this concept depends on the taxable liquid income.

8 0
3 years ago
Identify the difference, advantages and disadvantages between Intuition Assessment and Structured Analytical Techniques (SAT).
Oduvanchick [21]

Answer:

Structured analytic techniques (SATs) are the ways which coherent thought are analysed in a systematic and transparent way so as to share and be critiqued by others.

Intuition Assessment on the other hand, is the way a person reacts to his Intuition and chooses to act on them.

SATs are more useful when it comes to analytical or logical decisions while IA is useful in making in the spot decision based on gut feelings.

8 0
2 years ago
On January ​1, 2018​, the Cook​'s Restaurant decides to invest in Lake Topsey bonds. The bonds mature on December​ 31, 2021​, an
charle [14.2K]

Answer and Explanation:

The Journal Entry is shown below:-

Investment in bonds is at face value, no question about discount or premium.

Investment is rendered from the time the bonds mature before 2023. Hence, it is an investment as Working for Profit "Held until maturity"

Jan 1, 2018

Bonds receivables  Dr, $140,000

      To Cash  $140,000

(Being Investment in bonds is recorded)

30 June 2018

Cash Dr, $2,400

       To interest income $2,400

(Being six months interest received is recorded)

31 Dec 2018

3. Cash Dr, $2,400

       To interest income $2,400

(Being six months interest received is recorded)

Working note:-

Bond Value                         $140,000

Interest rate                          4%  

Interest earned half

yearly, effective rate

(4% × 6 ÷ 12)                            2%

Half Yearly interest amount

($140,000 × 2%)                     $2,800

3 0
3 years ago
Terri, age 16, is a dependent of her parents in 2020. During the year, Terri earned $5,000 in interest income and $3,000 from pa
aleksandrvk [35]

Answer:

A. $4,650

B. $1,750

C. $2,900

Explanation:

A. Calculation to determine Terri's taxable income

TAXABLE INCOME

Earned income $3,000

Add Unearned income $5,000

Gross income & AGI $8,000

($3,000+$5,000)

Less: Standard deduction ($3,350)

(Greater of either $3,000 or $1,050 income earned +$350)

Taxable income $4,650

($8,000-$3,350)

Therefore Terri's taxable income is $4,650

b. Calculation to determine How much of Terri's income is taxed at her rate

TAXED AT TERRI'S RATE​

Taxable income $4,650

($8,000-$3,350)

Less: amount taxed at parents' rate ($2,900)

($5,000-$2,100)

Taxed at Terri's rate​ $1,750

Therefore The amount of Terri's income that is taxed at her rate is $1,750

c. Calculation to determine How much is taxed at her parent's rate

TAXED AT PARENTS' RATE:

Net unearned income=$5,000-$2,100

Net unearned income= $2,900

($5,000-$2,100)

Therefore The amount of Terri's income that is taxed at her parent's rate is $2,900

6 0
3 years ago
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