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Over [174]
3 years ago
7

A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and

it will produce a cash flow of $15,000 two years from now. The firm has a required return of 11%. You are the manager of the advertising department and you estimate that the cost of this project is $13,000 today. Do you recommend that the firm accept this project
Business
1 answer:
timofeeve [1]3 years ago
6 0

Answer:

The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding

Explanation:

We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.

Present value=future cash flow/(1+required rate of return)^n

n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow

NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000

NPV=$75.24

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Which action is specifically recommended to enhance your credibility in the field of accounting?
LenaWriter [7]

Answer:

I'm pretty sure it's A, "complete a certification or qualification program offered by a professional association."

Explanation:

I believe this as it makes sense and I've had a question similar to this and got it right as the question and options where quite the same.

6 0
3 years ago
Read 2 more answers
Elmer’s utility function is U(x, y) = min{x, y2}. If the price of x is $25 and the price of y is $15 and if Elmer chooses to con
Arte-miy333 [17]

Answer:

the income is $1,330

Explanation:

The computation of the income is shown below;

Given that

U(x, y) = min{x, y2}

Price of x is $25

ANd, the prcie of Y is $15

So,

25X + 15Y = M

if Y = 7,

So,  

At eqm, X = Y^​​​​​​2 = 49

Then ,

M = 25 × 49 + 15 × 7

= 1225 + 105

= 1330

Hence, the income is $1,330

The same should be relevant and considered too

6 0
3 years ago
Which one of the following items would you be most likely to keep in a database ?
ser-zykov [4K]
Payroll records would most likely to keep in a database. It keeps it more safer for the future use.
7 0
3 years ago
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Wiley company purchased new equipment for $60,000. wiley paid cash for the equipment. other costs associated with the equipment
Colt1911 [192]
The total cost of equipment that should be recorded is calculated by adding up all the given values in this item. The costs include equipment cost, transportation cost, tax, and installation cost. Adding up all the values,

     TC = ($60,000) + ($1,000) + ($3,000) + ($2,500)
               TC = $66,500

ANSWER: TC = $66,500
6 0
3 years ago
A firm purchased a three-year insurance policy for $5,760 on July 1, 2019. The $5,760 was debited to the Prepaid Insurance 2. On
Andrej [43]

Answer:

The journal entries are as follows:

(i) Insurance expense A/c Dr. $160

        To prepaid insurance             $160

(To record the insurance expense)

Workings:

Insurance expense = cost of insurance policy ÷ 36 months

                                = $5,760 ÷ 36 months

                                = $160

(ii) Advertising expense A/c Dr. $1,160

           To prepaid advertising             $1,160

(To record the advertising expense)

Workings:

Advertising expense = cost of advertisement ÷ 24 months

                                   = $27,840 ÷ 24 months

                                   = $1,160

4 0
3 years ago
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