The answer is sunk cost
This incurred cost usually could not be recovered in any way.
For example, let's say for the business operation, you make a prepaid rent for a building for the whole year.
In this situation, the prepaid rent could be considered as a sunk cost because it's already incurred and not recoverable anymore
Answer:
d. no one.
Explanation:
Since the issuer of the promissory note was originally Jake, he was the only responsible for the payment of the note. Once he dishonoured it, the note lost its value and no one can be responsible for it. A promissory note is an asset created as a counterpart liability of Jake wealth. If the note is exchanged many times, only the last holder will suffer jake's action
Answer:
the options are missing:
- Always accept Project A.
-
Accept Project B if the required return is less than 13.1 percent.
- Be indifferent to the projects at any discount rate above 13.1 percent.
- Accept Project B only when the required return is equal to the crossover rate.
- Always accept Project A if the required return exceeds the crossover rate.
the answer is:
5. Always accept Project A if the required return exceeds the crossover rate.
The crossover point tells us that one project must be chosen if the IRR is higher than the cross over point, but if the IRR is lower, then the other alternative should be selected.
In this case, the cross over point is 12.3% and we are told that project A should be selected if the required IRR is 13.1%. That tells us that the alternative that we must choose above 12.3% is project A. Project B should be selected if the IRR is less than 12.3%.
Answer:
C) $130,000
Explanation:
Based on the lower of cost or market rule, the valued of the inventory would be
Replacement cost = $130,000
Selling price = $150,000 - $150,000 × 10% = $135,000
After considering the normal gross profit ratio, the value would be
= $135,000 - $150,000 × 20%
= $105,000
If we compare the cost and replacement value, then the less value would be considered i.e $130,000
C.
A Forward Rate Agreement (FRA) is an OTC rate derivative in which the buyer will pay or receive at maturity the difference between a fixed rate and a reference interest rate applied onto either a borrowing or lending (the notional is never exchanged), for a specific period of time.
