Answer:
NPV = 1,003,046
Explanation:
NPV = Present value of income - investment
investment 8,000,000
1,490,000 income per year during 8 years at rate x
We need to calculate the WACC so we can know the rate
equity-ratio = 0.40
debt-equity ratio = 0.6
WACC 6.69590%
Now that we achieve the rate we solve for the present value of the cash flow
PV 9,003,046
And finally get the answer
NPV 9,003,046 - 8,000,000 = 1,003,046
“it is free” is the false statement
Answer:
Etter capital $83,000
Lonnie Davis capital $83,000
Explanation:
Data provided in the question:
Capital balance of Myles Etter = $249,000
Capital balance of Crystal Santori = $105,000
Amount of interest sold by the Etter to Lonnie Davis = one-third
Sales price = $70,000
Now,
Required entry will be as follows
Etter capital $83,000
Lonnie Davis capital $83,000
Here,
the cash will be directly received by the Etter not by the partnership
Hence,
It will have not effect on the entry.
Answer to this question is all of above. D.
Answer:
Inelastic
Explanation:
Inelastic demand is when the buyer's demand does not change as much as the price changes. When price increases by 20% and demand decreases by only 1%, demand is said to be inelastic.
Inelastic demand in economics is when people buy about the same amount, whether the price drops or rises. This situation happens with things that people must have, like gasoline and food. Drivers must purchase the same amount even when the price increases.
