Which of the following

Lambert Manufacturing has $120,000 to invest in either Project A or Project B. The following data are available on these project

Angelina_Jolie [31]

Answer:

c. $74,450

Explanation:

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment

where,

The Initial investment is $120,000

All yearly cash flows would be

= Annual net operating cash inflows × PVIFA for 6 years at 14%

= $50,000 × 3.8887

= $194,435

Refer to the PVIFA table

Now put these values to the above formula

So, the value would equal to

= $194,435 - $120,000

= $74,435 approx

6 0

3 years ago

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

joja [24]

Answer & Explanation:

Account Type of Account Increase side

Supplies Asset Debit

Retained Earnings Capital Credit

Fees Earned Revenue Credit

Accounts Payable Liability Credit

Salary Expense Debit

Common Stock Asset Debit

Account Receivable Asset Debit

Equipment Asset Debit

Notes Payable Liability Credit

8 0

2 years ago

For which market structure do economists have the least precise model of price determination?

sasho [114]

The market structure for which economists have the least precise model of price determination is oligopoly.

Oligopoly is a market structure in which a small number of firms has the large majority of market share.

4 0

2 years ago

Martinez Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $

Artemon [7]

Answer:

Martinez Company

a) Journal Entries

Jan. 2, 2020:

Debit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

Credit Sales Revenue $639,100

To record the sale of goods on account, with trade terms, 5 days $9,100, net 30.

Debit Cost of goods sold $480,000

Credit Inventory $480,000

To record the cost of goods sold.

Jan. 28, 2020:

Debit Cash $639,100

Credit Accounts Receivable (Danone Inc.) $630,000

Credit Cash Discounts $9,100

To record the full receipt of cash on account and the revision of the cash discounts not taken.

Explanation:

a) Data and Analysis:

Jan. 2, 2020:

Accounts Receivable $630,000 Cash Discounts $9,100 Sales Revenue $639,100, terms, 5 days $9,100, net 30.

Cost of goods sold $480,000 Inventory $480,000

Jan. 28, 2020:

Cash $639,100 Accounts Receivable $630,000 Cash Discounts $9,100

7 0

3 years ago

Adams Bautista needs $26,700 in 8 years. Click here to view factor tables

alexandr1967 [171]

Answer:

a. $10,783.68

b. $10,510.36 semi annual compounding

Explanation:

a. This question requires the present value of $26,700 given 8 years and compounded annually at 12%.

Present Value = $\frac{Future Value}{ ( 1 + interest)^{number of periods} }$

Present Value = $\frac{26,700}{ 1.12^{8} }$

Present Value = $10,783.68

He would need to invest $10,783.68 today.

b. This is a duplicate of question 1 but I will solve it assuming semi-annual compounding just in case.

12% per annum would become = 12/2 = 6% per semi annum

Number of periods would become = 8 * 2 = 16 periods

Present Value = $\frac{Future Value}{ ( 1 + interest)^{number of periods} }$

Present Value = $\frac{26,700}{ 1.06^{16} }$

Present Value = $10,510.36

He would need to invest $10,510.36 today.

4 0

3 years ago