Answer:
Explanation:
Given that :
Project A will produce annual cash flows of $42,000 at the beginning of each year for eight years.
Project B will produce cash flows of $48,000 at the end of each year for seven years.
Return rate = 12% = 0.12
a) Which project should the company select and why?
To determine the project which the company should select; let find the PV of cash flow:
For project A; PV of cash flows at the beginning of the each year is determined with the use of the expression:
PV = $233,677.77
For project B , the PV of cash flows at the end of the each year is determined with the use of the expression:
PV = $219,060.31
Hence, the company should select project A due to the fact that the cashflow is higher.
b) Which project should the company select if the interest rate is 14% at the cash flows in Project B is also at the beginning of each year?
Given that : the new interest rate = 14%;
then :
PV of cahflow for project A is:
PV = $222,108.80
PV cashflow for project B is:
PV = $ 234656.04
Here, PV of Cash flow is greater in project B, As such it is best for the company to select Project B
Answer:
B) As a gain on retirement of the bonds
Explanation:
A corporation should record a gain on retirement of bonds when it buys back bonds that it has issued before at a lower price than the recorded liability (par value).
Since the parent company consolidated its financial records with the subsidiary, any bond issued by the subsidiary is considered as being issued by the parent company.
The example of the app market with hundreds of new applications introduced every day shows that <u>b. </u><u>cell phone use</u> has created a large enough market to make app development profitable.
<h3>What is the app market?</h3>
The app market refers to the market of computer applications or apps. Apps are used on various mobile devices used by billions of people.
App marketing today attracts the largest possible number of users for an app or widget, generating revenue in billions of dollars.
Thus, the correct answer is <u>Option B.</u>
Learn more about computer apps at brainly.com/question/1538272
Answer:
1.2%
Explanation:
The increase in wages must be bench-marked with the rate of inflation because the increase in wages does not determine your purchasing power, If the rate of inflation exceeds the percentage increase wages, your purchasing power is is declining all things being equal..
The real increase in wages = Percentage increase in wages - Inflation rate
= 4.80 percent - 3.60 percent
= 4.80% - 3.60%
= 1.2%
Therefore the approximate real increase in wages is 1.2%
Answer:
No, Anne can't do this.
Explanation:
Anne is acting as an agent which means there's a principal -agency binding contract and underlies the laws and duties that Anne has to perform keeping in her mind. Anne's duty is to act for the benefit of the principal i.e. owner of Marshall mechanical contractors ,such a duty is called fiduciary duty. A duty based on trust and loyalty.
So if Anne were to go and buy the land using confidential information and acting against her duties levied on her by law ,it would be a violation of fiduciary duty .