Answer:
The Present worth is $777930.25
Explanation:
FInd the NPV of the cashflows
NPV = 200000/(1+0.09)^1 + 200000/(1+0.09)^2 + 200000/(1+0.09)^3 + 200000/(1+0.09)^4 + 200000/(1+0.09)^5
= $777930.25
Therefore, The Present worth is $777930.25
The answer for this question is: C. <span>Payment of interest and expenses
In reporting cash flow, an indirect method will use accrual method to present cash from the operation on the cash flow statement
Which means that the rate of interest and expense will be added together over period of time.</span>
Answer:
More than in year 8
Explanation:
A capital lease is a type of lease in which the lesser financed only the asset and all other ownership rights would be transferred to the lessee
In the given situation, the 12-year capital lease is equivalent to the annual lease payment at minimum cost
This payment involves the interest and the reduction amount
Now in the year 10 the reduction made to the lease liability should be more than in the year 8
Answer:
May accrued revenue:
0 units delivered
April accrued revenue
166 units delivered at $15: 2,490
Explanation:
Cash proceeds:
March Request 166 units at $15 = 2,490
April Request 42 units at $15 = 630
<u>Accrual method:</u>
the accrual method will recognize revenue when it is earned, which in this case is represent by the delivery of the goods.
May accrued revenue:
0 units delivered
April accrued revenue
166 units delivered at $15: 2,490
