Answer:
Correct option is A 5.01%
Explanation:
Let irr be x%
At irr,present value of inflows=present value of outflows.
1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4
Hence x=irr=5.01%(Approx).
Answer:
$3,762
Explanation:
The computation is as seen below
Total cost when the production is 9,900 units
Direct materials $8,316
Direct labor $11,187
Variable overhead $12,474
Total $31,977
But,
Their new cost on supplier offer is
= $2.85 × 9,900 units
= $28,215
In the case when the order is accepted, the net income would increase by
= $31,977 - $28,215
= $3,762
This type of demand is classified as autonomous demand. Autonomous demand does not depend on other products but is due to increase in consumer usage by natural desire. This type of demand is relative to the needs of the consumer.
Answer: Interest expense=$108
Explanation:
Interest expense =Principal x Rate x Time ( Period)
Where
Principal = $16,200
Rate =, 8%
TIme ( Period ) = From December 1st to 31`st = 30 days
Interest expense= P x R x T
= $16,200 X 0.08 X 30/360
=$108
The amount of interest expense accrued at December 31 on the note is $108
