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tensa zangetsu [6.8K]
3 years ago
14

A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $4

80 and cash inflows of $350 a year for three years. If the start is delayed one year, the initial cost will rise to $520 and the cash flows will increase to $385 a year for three years. What is the value of the option to wait?a. $.70b. $1.08c. $1.67d. $2.20e. $.20
Business
1 answer:
victus00 [196]3 years ago
7 0

Answer:

The value of the option to wait is $0.70,option A.

Explanation:

In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.

Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.

The formula used in the calculating present value is PV=FV(1+r)^n

Where PV=present value

FV=future value

r=rate of interest

n=number of year

Find attached spreadsheet for detailed calculations.

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QS 7-13 Note receivable interest and maturity LO P4 On December 1, Daw Co. accepts a $36,000, 45-day, 10% note from a customer.
asambeis [7]

Answer and Explanation:

The journal entries are shown below:

1. Interest Receivable $300($36,000 ×  10% x 30 ÷ 360)  

         To Interest Revenue $300

(Being accrued interest revenue is recorded)

2. Cash $36,450

          To Interest Receivable A/c $300

          To Interest Revenue A/c $150 ($36,000 ×  10% x 15 ÷ 360)    

          To Notes Receivable A/c $36000

(Being note maturity date it is honoured is recorded)

6 0
3 years ago
In response to threats from such companies as Amazon, established manufacturers and retailers became "brick-and-click" oriented
docker41 [41]

Answer:

Re-intermediation

Explanation:

Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.

So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.

6 0
3 years ago
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
CaHeK987 [17]

Answer:

Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best

described as  an Executive Administrative Assistant

Liz responds to people who contact a company. She deals with people who visit the office in person and people who

call or email the company. Her job title is best described as  a Receptionist

Neil handles important paperwork that his office needs to keep track of. He sorts paperwork and keeps it handy so he

can retrieve information whenever it is needed. His job title is best described as  a File Clerk.

Salvador organizes information and appointments for a department manager. He also reviews and sorts e-mail for his

boss. His job title is best described as an Administrative Assistant.

Explanation:

The administrative assistants, receptionists, and file clerks perform important functions.  In their various capacities and roles, they help their bosses to function more efficiently and effectively by relieving them of routine tasks.  As they perform these duties, their bosses are enabled to concentrate their efforts and time in managing their assigned responsibilities.  However, these job titles are not universally uniform, as it depends on the organization.

4 0
4 years ago
What cortex is the decision-making and planning center of consciousness
adelina 88 [10]

Prefrontal cortex is the decision-making and planning center of consciousness.

<h3>What is prefrontal cortex?</h3>

The prefrontal cortex is said to be the seat of planning.

The cortex is a part of the brain which is the control of all mind activity. The prefrontal is located at the front of the brain and it helps planning of activities.

Therefore, prefrontal cortex is the decision-making and planning center of consciousness.

Learn more on planning below,

brainly.com/question/25453419

#SPJ12

3 0
2 years ago
At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000
erik [133]
I would say alot of money
7 0
3 years ago
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