What account is more likely to have penalties for frequent withdrawls?

Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR

PolarNik [594]

Answer:

a. 9.43%

Explanation:

IRR is the rate of return that makes initial investment equal to present value of cash inflows

Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r

1250 = 325 * [1 - 1 / (1 + r)^5] /r

Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%

1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943

1250 = 325 * 3.846639

1250 = 1,250

Therefore, The project IRR is 9.43%

3 0

2 years ago

Leno Company sells goods to the Fallon Company for $10,000. It offers credit terms of 2/10, n/30. If Fallon Company pays the i

Zinaida [17]

Answer:

Leno Company will record a debit to Cash in the amount of: D. $9,800

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Fallon Company pays the invoice within the discount period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.

On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800

Leno Company will record a debit to Cash in the amount of $9,800

6 0

2 years ago

You have a neighbor, Mr. Peterson, who comes to you for advice. He owns a fish and chips restaurant, "The Codfather, LLC" which

Vladimir [108]

The first advice I would give Mr. Peterson would be to formalize the transfer. So the first step in this situation would be to contact a good lawyer to see if the transfer of business to your child would be authorized. This is because the transfer of LLCs has rules that may differ from one location to another.

7 0

3 years ago

Read 2 more answers

At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $673,000. Chan records it

Rudiy27

Answer:

bad debt expense 2,019 debit

allowance for uncollectible amount 2,019 credit

--to record estimated bad debt expense--

allowance for uncollectible amount 337 debit

accounts receivables 337 credit

--to record write-off of P.Park Account--

accounts receivables 337 debit

allowance for uncollectible amount 337 credit

--to reverse write-off of P-Park account--

cash 337 debit

accounts receivables 337 credit

--to record collection of P-Park account--

Explanation:

bad debt expense 673,000 x 0.30% = 2,019‬

The write off decreases both, the allowance and accounts receivables

As Park pay up his old debt, the entry is reversed. Then we record the collection as normal.

6 0

2 years ago

On December 31, 2021, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, ex

ivanzaharov [21]

Answer:

$20,000

Explanation:

Calculation to determine by what amount will Perry's earnings increase due to this lease

Using this formula

Selling price=Fair value-Cost

Let plug in the formula

Selling price=$125,000-$105,000

Selling price=$20,000

Therefore The amount that Perry's earnings will increase due to this lease is $20,000

3 0

2 years ago

What account￼ is more likely to have penalties for frequent withdrawls￼?

What account is more likely to have penalties for frequent withdrawls?