*matches pairs to respective categories*
Answer:
The second project should be chosen. Because the present value of the second project is greater than that of the first project.
Explanation:
The project that should be chosen can be determined by comparing the present value of both projects.
Present value is the cash flows from a project discounted at the discount rate.
Present value can be found using a financial calculator;
For project 1,
Cash flow each year from year one to six is $52,000
Discount rate = 15%
Present value =$196,793.10
For project 2,
Cash flow each year from year one to eight is $48,000
Discount rate = 15%
Present value =$215,391.43
The second project would be chosen because its present value is greater than that of the first project.
I hope my answer helps you
Answer:
option (A) $212.97
Explanation:
Data provided in the question:
Gross earnings for the pay period ending 10/15/16 = $5,835
Total gross earnings as of 9/30/16 = $104,400
Social Security tax rate = 6.2%
Now,
Total earnings
= Gross earnings for the pay period ending 10/15/16 + Total gross earnings as of 9/30/16
= $5,835 + $104,400
= $110,235
since,The Social Security taxes are on a maximum earnings of $106,800 per year
therefore,
Sabrina's Social Security withheld from her 10/15/16 paycheck will be
= ( Total earnings - $106,800 ) × Social Security tax rate
= ( $110,235 - $106,800 ) × 0.062
= $3,435 × 0.062
= $212.97
Hence,
The answer is option (A) $212.97
Answer:
B. First-in, first-out (FIFO)
Explanation:
First-in, first-out (FIFO) is an accounting principle which refers to a process whereby assets that are purchased first are sold first. In this situation, the cost in which the particular inventory was purchased is still the same cost with which it is sold out.
First-in, first-out principle can be used to determine the profitability of a merchandise with its associated cost taken into consideration.
