Answer:
D.)
the highest IRR
Explanation:
Here are the options to the question :
A.)
the IRR that is closest to zero
B.)
a negative IRR
C.)
the lowest IRR
D.)
the highest IRR
IRR is a capital budgeting method.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The higher the IRR, the more profitable the project is.
In the absence of certain restrictions, the project with the highest IRR should be chosen
Answer:
Stated yield is 11.04%
expected yield is 5.78%
Explanation:
The expected yield to maturity can be computed using the rate formula in excel which is given below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay which is 13
pmt is the amount of coupon interest the bond pays which is $1000*10%=$100
pv is the current price of the bond which is $930
fv is the face value of $1000
=rate(13,100,-930,1000)=11.04%
However the expected yield has the coupon interest reduced to one -half as calculated below:
=rate(13,100*0.5,-930,1000)=5.78%
Answer:
I think is b.
Explanation:
or d but double check just from background i eliminate a and c
Answer:
How will this purchase impact the accounting equation of Perfect Printers at the time of the purchase?
An increase in the assets by $200,000 and a similar increase in liability by $200,000
Explanation:
The accounting equation is the foundation for the double enter system of account balancing. In this system, the amount of debits are entered on one side as the corresponding credit is entered on the other side. Then the total credits are added and compared to the sum of the debit. When the credit equals the debit, the accounts balance. The accounting equation can be expressed as;
A=L+E
where;
A=assets
L=liabilities
E=owner's equity
Lets enter the transaction as shown;
Account type Asset Liability
Printing machine $200,000
Cash $200,000
Total $200,000 $200,000
An increase in the assets by $200,000 and a similar increase in liability by $200,000
Answer:
Value of closing inventory = $25771.04
Explanation:
To calculate the value of ending inventory under a periodic average cost method, we will calculate the average price per unit of inventory at the end of the month. To calculate the average price per unit, we simply divide the total cost of the inventory by the total number of units for the month.
Average cost per unit = Total cost of all units for the month / Total units available for the month
<u />
<u>Total cost of all units:</u>
Beginning inventory (485 * 66) 32010
Purchase 1 (725 * 69) 50025
Purchase 2 (364 * 71) <u> 25844</u>
Total 107879
<u>Total Units</u>
Beginning Inventory 485
Purchase 1 725
Purchase 2 <u>364</u>
Total 1574
Average cost per unit = 107879 / 1574
Average cost per unit = $68.54
Units of closing inventory = 1574 - 1198 = 376 units
Value of closing inventory = 376 * 68.54
Value of closing inventory = $25771.04
