Answer:
C. Accrued expense
Explanation:
Because the expense has already been incurred, but not yet paid, it is an accrued expense.
Answer:
Desing A is a better deal as the equivalent annual cost is lower than desing B
Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes
Explanation:
<em><u>Desing A </u></em>
F0 405,000
operating and maintenance cost 51,000 for 14 years
Present value of the operating and maintenance cost:
C = $ 51,000.00
time = 14 years
rate = 0.07
PV $446,018.8673
net worth: $ 851,081.87
equivalent annual cost:
PV 851,082
time 14
rate 0.07
C $ 97,316.904
<u><em>Desing B</em></u>
F0 251,000
operating and maintenance cost 89,000 for 14 years
C 89,000.00
time 14
rate 0.07
PV $778,346.6507
net worth: $ 1,029,346.65
equivalent annual cost:
C $ 117,700.580
Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
For a promise or order to be considered negotiable, it must
of a necessity be an unconditional order for payment. Unlike deals where satisfaction
with the goods being purchased is prerequisite for payment, for a negotiable
promise or order, payment cannot depend upon any condition or contract.