Answer:
e. The NPV method assumes that cash flows will be reinvested at the cost of capital, while the IRR method assumes reinvestment at the IRR. Explanation:
Under the NPV method that is the Net Present Value method, discount rate used is cost of capital of a company, that is Weighted Average Cost of Capital. This is to ensure that the company is able to meet its current financing cost.
Under the IRR method the rate is calculated at which the return of investment and cost of such project or investment is equal, if it is more than cost of capital the project is acceptable.
Therefore, statement e stating that the NPV method uses the cost of capital and IRR uses the IRR rate is correct.
The answer is "-4.85%".
Year Output Input Productivity
in Packages in Drivers (Output/Input)
last year 103,000 <span>84 1226.2
this year </span><span> 112,000 96 1166.7
Percentage change = (</span>1166.7 - 1226.2) = <span> -59.5/1226.2 = 0.0485
=0.0485 x 100 = -4.85%</span>
Sanitization or cleaning wiping down the counter
Answer:
the monetary base is $150 billion
Explanation:
The computation of the monetary base is shown below:
Monetary base is
= Currency held by the public + reserve held by the banks
= $100 billion + $50 billion
= $150 billion
Hence, the monetary base is $150 billion
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts
Explanation:
The journal entry needed to record the adjusting entry by using the allowance method is given below:
Bad debt expense
To Allowance for doubtful debts
(Being bad debt expense is recorded)
Here the bad debt expense is debited as it increased the expense and credit the allowance as it decreased the assets
