They are prone to corrosion and are not as strong
Answer: $115998
Explanation:
Based on the information given, we can calculate the NOI from the 6th year which will be:
= $80,000 × (100% + 15%)
= $80,000 × 115%
= $80,000 × 1.15
= $92,000
Therefore, the net present value of the property based on the 10-year holding period and a discount rate of 9.5% will be:
= 80000(PVAF, 5 year) + 92000[PVAF,(10-5),9.5%] + 830000/(1.095)10-750000
= (80000 × 3.839) + (92000 × 2.439) + (830000 × 0.403) - 750000
= 307120 + 224388 + 334490 - 750000
= 865998 - 750000
= $115998
Therefore, the net present value is $115998
Answer:
a. Utilities Expense 500
Cash 500
Explanation:
Given: Consulting immediately paid $500 cash for utilities.
As $500 cash been paid for utility expenses.
We know the golden rule of accounting transaction:
- Personal accounts: Debit the receiver, credit the giver.
- Impersonal real account: Debit what comes in, credit what goes out.
- Impersonal Nominal account: Debit all expenses and losses, credit all profit and gains.
Paid for utility expense of firm is not the personal account, however, it is impersonal account. In the given case, cash is going out of business.
Therefore, Debit all expense and losses and credit what goes out of business.
Journal Entry of the transaction:
Debit utility expenses account--- $500
Credit cash account--- $500
First we find out how many weeks are in 1 year:
1 year = 52.1429 weeks
Then we find out how many hours he worked in a year by multiplying the number of hours he worked by the number of weeks there are in a year:
40 hrs/week x 52.1429 hrs/year = 2,085.716 hrs
Finally we divide:
27,040 dollars/year by 2,085.716 hrs
Afterwards we get 12.964372906, or to make it simpler we would round and get 12.96 dollars/hour
So your answer is $12.96 per hour.
