Answer:
Dr. Account Payable $5,700
Cr. Discount Income $114
Cr. Cash $5,586
Explanation:
Term 2/10, net/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after purchase and net credit period of 30 days.
According to given data
Purchases = $5,700
As the payment is made within discount period, so discount will be availed
Discount = $5,700 x 2% = $114
Amount to be paid = $5,700 - $114 = $5,586
Answer: A -Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace.
Explanation: An offer is a legal term used in a contract. An offer is made by an intending buyer to an intending seller regarding a product or service.
The offer is a legal question that is asked by a willing buyer if the seller of the product would consider selling it or not.
An offer can be accepted or declined by the person being made the offer.
Answer:
The correct answer is Reinstatement.
Explanation:
The Reinstatement provision specifies what an insured must do, if a policy has lapsed, in order to put it back in force.
A reinstatement clause is a clause in insurance policy which grants the policy owner the right to reinstate a lapsed policy for specified reasons, such as non-payment of premiums, by furnishing satisfactory evidence of insurability and paying all unpaid premiums.which grants the policy owner the right to reinstate a lapsed policy for specified reasons, such as non-payment of premiums, by furnishing satisfactory evidence of insurability and paying all unpaid premiums.
Borrowed money obtained through loans of various types is
called debt capital. capital is a loan made to a company that is normally
repaid at some future date. Debt capital is the loan that a business raises by
taking out a loan.
Answer:
Year Cash Flow (A) Cash Flow (B)
0 -37,500 -37,500
1 17,300 5,700
2 16,200 12,900
3 13,800 16,300
4 7,600 27,500
1) Using an excel spreadsheet and the IRR function:
IRR project A = 20%
IRR project B = 19%
2) Using the IRR decision rule, Bruin should choose project A.
3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.
4) Again using an excel spreadsheet and the NPV function:
NPV project A = $6,331
NPV project B = $8,139
5) first we must subtract cash flows from A by the cash flows from B:
1 $11,600
2 $3,300
3 -$2,500
4 -$19,900
then we calculate the IRR = 16%
Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B
