Prepare a three column cash book from de following information

Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 68,000 −$ 68,00

den301095 [7]

Answer:

IRR for A= 35.33%

IRR for B = 31.88%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a finacial calculator :

IRR for cash flow A

Cash flow in year 0 = −$ 68,000

Cash flow in year 1 = $44,000

Cash flow in year 2 = $38,000

Cash flow in year 3 = $25,000

Cash flow in year 4 = $15,600

IRR = 35.33%

IRR for cash flow A

Cash flow in year 0 = −$ 68,000

Cash flow in year 1 = $30,200

Cash flow in year 2 = 34,200

Cash flow in year 3 = $40,000

Cash flow in year 4 = $24,200

IRR = 31.88%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

7 0

3 years ago

In which instance will total revenues decline? Multiple Choice price increases and Ed equals -.41 price increases and demand is

liraira [26]

Answer:

price increases and Ed equals -2.47

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is inelastic if a change in price has little or no effect on quantity demanded. The absolute value of the coefficient for inelastic demand is less than 1.

If price increases and demand is inelastic, total revenue would increase because there would-be little or no change in quantity demanded as a result of the price increase.

Demand is elastic if a small change in price has a greater effect on the quantity demanded.

The absolute value of the coefficient for elastic demand is greater than 1.

If demand is elastic and price is increased, revenue would fall because of the decease in quantity demanded.

If demand is elastic and price is deceased, revenue would rise because of the increase in Quanitity demanded as a result of the fall in price.

Demand is unit elastic if a change in price has the same proportional effect on quantity demanded. The absolute value of the coefficient for unit elastic demand is one.

I hope my answer helps you

8 0

3 years ago

The debt created by a business when it borrows from a vendor or supplier is called a(n):

Tatiana [17]

Answer: Account payable

Explanation:

The account payable is one of the type of department which track all the expenditures, purchasing order statement and the payment.

The main responsibility of the account payable is that it maintain all the historical records of the payment and also balance all the debt system. It is the process of recording all the important information or the data.

According to the given question, the debt basically created by the business during the process of borrows from the supplier or the vendors is known as the account payable.

3 0

2 years ago

Read 2 more answers

If gdp is $20 trillon, how many years will it take for gdp to increase to $40 trillion if annual growth is 10 percent?

ElenaW [278]

It will take 7 years.

Given GDP is $20 trillion and increased GDP is $40 trillion.

Gross domestic product (GDP) is the standard measure of value added generated by the country's production of goods and services over a certain time period. GDP is the total monetary or market worth of all completed products and services produced within a country's boundaries in a certain time period.

As such, it also accounts for the money generated by such output, as well as the overall amount spent on final products and services (less imports).

Time take to reach $40 trillion is to be found.

Formula to find the time taken to reach $40 trillion is given below:

F = P *(1+i) ^t

Here,

F = 40,

P = 20,

I = 10%

Now put the values in the formula given above.

F = 0.1040 = 20 × (1+0.10) ^t(1.10)^t

= 40 / 20

= 2

Taking log both sides t = log 2 / log 1.10

= 7.27 yrs or 7 yrs

Therefore, it will take 7 years.

To know more about GDP click here:

brainly.com/question/1383956

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8 0

1 year ago

At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The

Zepler [3.9K]

Answer:

The multiple choices are:

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

The correct option is A,$200 million

Explanation:

The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:

Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities

increase in cash in the year=$325+($500-$100)-$600=$125 million

cash at the end of the year=$125 +$75=$200 million

6 0

3 years ago