What is business office ? why is it established . Give 8 reason

The term ____ refers to tangible choices such as - in the case of a new venture - investing in research and development for new

Verdich [7]

The answer in the space provided is real options. Real options are the choices in which are present or available in terms of opportunities in the business investments. The reason that is termed as real is because it is not considered to be financial instrument but rather as a tangible asset.

8 0

3 years ago

Cash Payback Period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM

sashaice [31]

Answer:

Location 1 = 5 years

Location 2 = 4 years

Explanation:

The period in which initial investment is recovered by a business is known as payapack period.

Location 1

Net cash flow = $320,000

Cash Flow per year = $320,000 / 8 = $40,000

Payback period = Initial Investment / Yearly cash flow = $200,000 / $40,000 per year = 5 years

Location 2

As per given Data

Cash Flows

Year1 $60,000 Year2 $50,000

Year3 $50,000 Year4 $40,000

Year5 $30,000 Year6 $30,000

Year7 $30,000 Year8 $30,000

Payback period Balance

Year0 ($200,000) ($200,000)

Year1 $60,000 ($140,000)

Year2 $50,000 ($90,000)

Year3 $50,000 ($40,000)

Year4 $40,000 ($0)

It took 4 year to recoveer the initial investment, so the payaback period is 4 years.

4 0

3 years ago

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Y

nordsb [41]

Answer:

The payback period of the investment is 6.5 years

Explanation:

1. In order to calculate the payback period of the investment we would have to make the following calculation:

payback period of the investment=Year before full recovery+(Unrecovered cost at the start/cash flow during the year )

payback period of the investment=6+ ($23,000−$20,500) /$5,000

payback period of the investment=6.5 Years

The payback period of the investment is 6.5 years

5 0

3 years ago

On January 1, 2019, Park Company accepted a $36,000, non-interest-bearing, 3-year note from a major customer in exchange for use

Darya [45]

Answer:

$28,560

Explanation:

Calculation for the carrying value of the note receivable on Park’s December 31, 2019, balance sheet

Using this formula

Carrying value of note receivable =Present value of the note +(Imputed interest rate ×Present value of the note )

Let plug in the formula

Carrying value of note receivable=$25,500+(12%×$25,500)

Carrying value of note receivable=$25,500+$3,060

Carrying value of note receivable=$28,560

Therefore the carrying value of the note receivable on Park’s December 31, 2019, balance sheet will be $28,560

7 0

4 years ago

Swifty Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and

Roman55 [17]

Answer:

Swifty Company

a) Issuance of the bonds:

Debit Cash Account $460,560

Credit Bonds Payable $456,000

Credit Bonds Premium Amortization $4,560

To record the bonds issue and related premium.

b) Payment of interest and related amortization on July 1, 2020:

Debit Interest on Bonds $22,686

Debit Bonds Premium Amortization $114

Credit Cash Account $22,800

c) Accrual of interest and the related amortization on December 31, 2020:

Debit Interest on Bonds $22,686

Debit Bonds Premium Amortization $114

Credit Cash Account $22,800

Explanation:

The total cash received from the bonds issuance is $456,000 x 101% = $460,560. This amount includes the bonds premium amounting to $4,560, which is the difference between the amount received and the actual value of the bonds. This amount will be amortized on a straight-line basis over 20 years, semi-annually at $114.

8 0

3 years ago

What is business office ? why is it established . Give 8 reason​

What is business office ? why is it established . Give 8 reason