Answer:
NPV = $49,234.16
Explanation:
The Net present value (NPV) is the difference between the Present value (PV) of cash inflows and the PV of cash outflows. A positive NPV implies a good investment project and a negative figure implies the opposite.
NPV of an investment:
NPV = PV of Cash inflows - PV of cash outflow
<em>Present value of cash inflows:</em>
A × 1-(1+r)^(-n)/r
A- annual cash inflow-20,000 r-rate of return-10%, n-number of years-6
PV of cash flow = 20,000 × (1.1)^(-6)/0.1 = 87,105.21399
<em>PV of scrap value</em>
F× (1+r)^(-n)
F- scrap value
= 2,000× 1.1^(-6)= 1,128.94
Initial cost = $39,000
NPV = 87,105.21399 + 1,128.94 -39,000= $49,234.16
NPV = $49,234.16
Answer:
$17.80 per labor-hour
Explanation:
Predetermined overhead rate = Budgeted Fixed Overheads ÷ Budgeted Activity
= $961,200 ÷ 54,000 labor-hours
= $17.80 per labor-hour
Predetermined overhead rate for the recently completed year is $17.80 per labor-hour.
Answer:
Unearned Fees A/c Dr. $8,370;
Fees Earned A/c Cr. , $8,370.
Explanation:
The amount of $33,480 paid is for 36 months. Subscription per months will be $33,480 divided by 36 months
=$33,480 / 12
=$930
The subscription was paid on April 1st. Between April 1st and December 31st, there were 9 months.
The subscriptions for that year will be
= $930 x 9
=$8,370
The journal entries will be as follow
Unearned Fees A/c Dr. $8,370;
Fees Earned A/c Cr. , $8,370.
The answer is letter a, cosigner. Mark is a cosigner is someone who is in charged of the other person's debt when that person he's in signed with wasn't able to meet the requirements or fail to pay or comply. That is why Mark is considered to be a cosigner of Gabriel if Gabriel fails to comply to pay the loan and Mark is in charged to settle it if Gabriel fails to do so.
