Answer:
The correct answer is $1,370
Explanation:
The computation of net present value is shown below:-
For computing the net present value first we need to find out the present value of inflow
Present Value of Inflow of 3 Years at 9% = Net cash flow × Number of years
= $27,800 × 2.5313
= $70,370
Net Present Value = Present value of inflow - Initial Outflow
= $70,370 - $69,000
= $1,370
Therefore for computing the net present value we simply deduct the initial outflow from present value of inflow.
The correct option is C.
The entrepreneur is the one who brings together all the factors of production and organize them into a working business entity. The entrepreneur provides the capital needed for the business, hire laborers to work in the business and provide all the equipment and the raw materials that the business requires.
Answer:
$110,000 on maturity
Interest of $6,050 semiannually
Explanation:
Jordan will pay $110,000 at maturity date with 20 payments of $6050 as interest
11% bonds at par value = $110,000
Interest paid = Semiannually
Market rate = 10%
At maturity, the par value will be paid as the par value of Jordan issued bonds is 110,000, therefore, Jordan will pay 110,000 on the maturity date.
As the bonds are issued for 10 years with semiannual payments that will be like 20 payments of $6,050 (110,000 x 10% x 6/12)
<u>Calculation of amount of direct materials charged to job no. 173:</u>
It is given that the work in process inventory on December 31 consisted of job no. 173 with a balance of $66,200.
Job no. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. It means the direct labor cost would be 20,000/50% = $40,000
Now we can calculate the amount of direct materials charged to job no. 173 as follows:
Direct material Cost = Total Cost allocated to Job – Direct Labor Cost – Manufacturing Overhead Cost
= 66200-40000-20000
= 6200
Hence, the amount of direct materials charged to job no. 173 is <u>$6,200</u>
