tanning company analyzes its receivables to estimate uncollectible accounts. the accounts receivable balance is $338,000 and credit sales are $1,000,000. an aging of accounts receivable estimates that $13,520 of the outstanding receivables will be uncollectible. what adjusting entry will tanning company make if allowance for doubtful accounts has a credit balance of $1,800 before adjustment? a. account debit credit bad debt expense 45,960 allowance for doubtful accounts 45,960 b. account debit credit bad debt expense 11,720 allowance for doubtful accounts 11,720 c. account debit credit bad debt expense 13,520 allowance for doubtful accounts 13,520 d. account debit credit bad debt expense 15,320 allowance for doubtful accounts 15,320

Answers

Answer 1

The adjusting entry if the allowance for doubtful accounts has a credit balance of $1,800 before adjustment will include:

Debit to Bad Debt Expenses $11,450Credit to Allowance for Doubtful Accounts $11,450.

How do we calculate the adjusting entry?

Data

Accounts receivable balance = $338,000

Credit sales = $1,000,000

Estimated uncollectible = $13,520

Allowance for doubtful accounts balance = $1,800 (credit)

Date   Account titles                      Debit         Credit

           Bad Debt Expense             $11,450

                 Allowance for Doubtful Accounts $11,450

                 [$13,250 - $1,800]

(To record bad debt expense and adjust the allowance for doubtful accounts)

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Related Questions

Which three components are characteristic of a Pitch Deck? (Choose three) Question 34 options: Highly Visual 10-100 pages Highly Text-Based 10-20 slides Used to Get Investors Attention Used to Get Investor Buy-In

Answers

Based on marketing strategy, the three characteristics of a Pitch Deck include Highly Visual 10-100 pages.

What is Pitch Deck?

Pitch Deck is a marketing term used to describe the presentation to sell firms or business ideas to targeted audiences, who are expected, investors.

Other characteristics of a Pitch Deck include the following:

Used to Get Investors Attention Used to Get Investor Buy-In

Hence, in this case, it is concluded that the correct answer is options A, C, and D.

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Answer: The answer should be 10-20 slides, used to get investors attention, and highly visual. Please let me know know if i am wrong  

Explanation:

what is the factored form of x^2-11x+24=0

Answers

Answer:

(x - 8)(x - 3) = 0

Explanation:

Use the AC method, multiplying the a by c, or the coefficient of x (which is 1) and the last term, 24.

1 x 24 = 24

Now list factors of 24:

1 x 24

-1 x -24
2 x 12
-2 x -12
3 x 8
-3 x -8
4 x 6
-4 x -6

Which of these factor's sums would equal -11 (the middle term)?

-3 + (-8) = -11

So replace -11x with -3 and -8:
x^2 - 3x - 8x + 24 = 0

Now factor by separating into two groups:
x^2 -3x and -8x + 24

GCF between x^2 and -3x is x. So factor x out.
x(x - 3)

GCF between -8x and 24 is 8. So factor 8 out.
-8(x - 3)

Now we have x(x - 3) - 8(x - 3)

(x - 8)(x - 3)

2. The first draft of the project charter is as follows:
Project Manager
Project Sponsor
Start Date
Project Mission
PROJECT CHARTER
Annual Clothing Drive
Talar Adams
Activities Committee
April 21
Deliver clothes to local shelters
a. Does this charter contain enough information for Talar to get started? Why or why
not?

2. The first draft of the project charter is as follows:Project ManagerProject SponsorStart DateProject

Answers

Answer:

The charter provides some basic information about the project, such as the project manager, sponsor, start date, and mission. However, it does not provide enough details about the project's scope, objectives, budget, timeline, stakeholders, and risks. Talar needs more information to understand the project's requirements, constraints, and expectations. She also needs to define the project's deliverables, milestones, and success criteria. Without a clear and comprehensive project charter, Talar may face difficulties in planning, executing, and controlling the project, as well as communicating with stakeholders and managing their expectations. Therefore, Talar should revise the project charter to include all the necessary information and obtain approval from the project sponsor before proceeding with the project.

The amount of money a college student spends on text books annually is known to follow a normal distribution with a mean of $925 and a standard deviation of $45. what is the 80th percentile of this distribution?

Answers

The 80th percentile of the distribution corresponds to a textbook cost of approximately $888.8. This means that 80% of college students spend $888.8 or less on textbooks annually.

To find the 80th percentile of the distribution, we can use the Z-score formula and standard normal distribution tables. The Z-score measures the number of standard deviations a data point is from the mean.

First, we need to calculate the Z-score corresponding to the 80th percentile. Since the normal distribution is symmetrical, we can find the Z-score associated with the 80th percentile by subtracting it from 1 (100% - 80% = 20%). Using a standard normal distribution table or calculator, we can find that the Z-score corresponding to the 20th percentile is approximately -0.84.

Next, we can use the Z-score formula to find the actual textbook cost value at the 80th percentile. The Z-score formula is:

Z = (X - μ) / σ

where Z is the Z-score, X is the value we want to find, μ is the mean, and σ is the standard deviation.

Rearranging the formula, we have:

X = Z * σ + μ

Plugging in the values, we get:

X = (-0.84) * $45 + $925

X ≈ $888.8

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review of the nigerian economy​

Answers

Answer:

amazing

Explanation:


Nigeria's economic freedom score is 57.2, making its economy the 116th freest in the 2020 Index. Its overall score has decreased by 0.1 point, reflecting a decline in the fiscal health score.

Peyton Corporation and Rogers Corporation operate in the same industry. Peyton uses the straight-line method to account for depreciation, whereas Rogers uses an accelerated method. Explain what complications might arise in trying to compare the results of these two companies.

Answers

Answer:

If both firms have a lot of depreciable fixed assets, using the MACRS depreciation schedule or some other type of accelerated depreciation method will increase their expenses during the first years resulting in lower operating income. This situation reverses in the later years when the depreciation expense becomes much lower, resulting in higher operating income. On the other hand, using straight line depreciation makes your depreciation expense more stable and sometimes even more realistic.

Companies use MACRS depreciation to lower their tax liabilities by lowering their income. Remember that $1 saved today is worth more than $1 saved tomorrow.

In this case, Rogers Corporation might yield a lower income during the first years that it depreciates its assets, but then it will show much higher income (during the last years). Peyton Corporation should show more stable income.

Sara wants to purchase new equipment for her home office. The sales tax rate that will apply when she makes her purchase is 6%. Here is a list of items she wants to purchase:

keyboard, $9.99
mouse, $14.99
22-inch monitor, $99.99
chair, $129.99
If Sara has $275 to spend on new equipment for her home office, she ____
be able to purchase all of the items on her list because the total of her purchase after applying sales tax is ____
BLANK ONE:
Will
Will not

BLANK TWO:
$254.96
$270.26
$272.81
$277.91

$

Answers

Answers:

Blank One: WillBlank Two:  $270.26 (choice B)

=========================================================

Explanation:

Add up the prices given to get

9.99+14.99+99.99+129.99 = 254.96

This is the total amount before tax.

Now let's calculate the tax based on this subtotal.

6% of 254.96 = 0.06*254.96 = 15.2976 which rounds to 15.30. So the sales tax is $15.30 which is added on top of the previous subtotal which gets us 254.96+15.30 = 270.26

A different way to get this is to multiply 254.96 by 1.06 and you should get 270.2576 which rounds to 270.26

Assuming there are no other taxes, fees or surcharges, the value $270.26 is the grand total that Sara will have to pay if she wants all of those items.

Since $270.26 is smaller than $275, this means she will be able to purchase all of the items. Her change will be 275-270.26 = 4.47 dollars.

Tim is 16 years old,a high school student, and lives with hi parents.He earned $5,200 and his part-time job. Select the best possible answer.(Only 1 answer)

Tim is 16 years old,a high school student, and lives with hi parents.He earned $5,200 and his part-time

Answers

Answer:

the second one

Explanation:

prettyu sure,

only can claim is tim parents and he has no other choice but to return the file tax return

Current tax laws allow Tim's parents to claim Tim as a dependent; Tim has the option to file a tax return

According to the IRS, Tim can be claimed as a dependent by his parents because:

He is their son He is a student who is younger than 23 He lives with his parents

He also has the option but not the obligation to file a tax return because his gross income is less than $12,200 as a dependent.

In conclusion, Tim can be claimed as a dependent by his parents but he does not have to file a tax return.

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according to organizational theory, conflict stems from a mismatch of any of the following agency bases except

Answers

According to organizational theory, conflict stems from a mismatch of any of the following agency bases except

Conflict is a natural occurrence in organizational settings, but it can be managed through effective communication, conflict resolution strategies, and clear agency bases to ensure all parties involved have a clear understanding of their roles and responsibilities.

The organizational theory explains conflict as a disagreement between individuals or groups within a business setting. The main reason for conflict is due to a mismatch of agency bases.

Agency theory explains the relationship between the owner (principal) and the agent (employee). When this relationship is not clearly defined, it leads to conflicts. Below are the types of agency bases that contribute to conflict;

Role conflicts refer to the conflicting expectations of different roles that the employee holds in the organization. These expectations cause stress, confusion, and ambiguity, which leads to conflict.

Role conflict may arise when an employee is given two or more assignments that require different skills and abilities, and the employee is not sure which one to prioritize and focus on.

Goal conflicts occur when employees are assigned different goals that are in contradiction with each other. For example, the sales team may have a target to sell a specific product in a particular region, while the production team may have a target to reduce costs.

This can lead to conflicts because the two teams have different goals that do not support each other. Resource conflict This is a situation where there is a limited resources such as money, time, and space. In most cases, this type of conflict arises when employees compete for resources that are not enough to satisfy their needs.

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Should a business email contain a salutation?

Answers

Answer:

A business email is meant in a professional way. It can be sought out as multiple different approaches, one of them, in this case, can include a friendly and welcoming business approach, including a salutation. All in all, it is up to the writer, there is no fully correct answer. Hope this helps :)

How long after taxes are accepted will they be deposited?.

Answers

Most taxpayers who file electronically will get deposited within 21 days. Hope that helps have a good day :)

What is the output that a system is capable of achieving over a period of time?

Answers

The output that a system is capable of achieving over a period of time is called the system's capacity.

What is capacity?

Capacity is the maximum level of output that a system can sustain over a given period of time, given its available resources and the constraints under which it operates. Capacity can be measured in a variety of ways, depending on the nature of the system and the specific outputs being produced.

For example, in a manufacturing plant, capacity might be measured in terms of the number of units of a product that can be produced per hour or per day. In a service industry, capacity might be measured in terms of the number of customers that can be served in a given time period.

Capacity planning is an important aspect of operations management, as it involves forecasting future demand for a product or service and ensuring that the system has the necessary resources and capabilities to meet that demand.

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according to the kaldor-hicks principle, when should a project or policy be implemented?

Answers

According to the Kaldor-Hicks principle, a project or policy should be implemented if the winners could compensate the losers and still be better off.

The Kaldor-Hicks principle is an economic theory that states that a project or policy should be implemented if the overall benefits to society outweigh the costs, and if those who benefit from the project or policy could compensate those who are negatively affected and still be better off. In other words, the gains to the winners must be larger than the losses to the losers, and the winners should be willing to compensate the losers in order to make the change happen. This principle is often used in cost-benefit analysis and is intended to ensure that projects and policies are implemented in a way that maximizes overall societal welfare.

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a moving sidewalk in an airport moves people between gates. it takes jason's 9 year old daughter 56 sec to travel 171 fit walking with the sidewalk. It takes her 35 sec to walk 70 ft against the moving sidewalk (in the opposite direction). Find the speed of the sidewalk and find Josie's speed walking on non-moving ground. Part 1 of 2 The sidewalk moves at 2.5 ftsec. Part: 1/2 Part 2 of 2 Josle walks moves It sec.

Answers

The speed of the moving sidewalk is 2.5 ft/sec. Josie's speed walking on non-moving ground is 4.5 ft/sec.

Part 1 of 2:

To find the speed of the moving sidewalk, we can use the formula:

distance = rate x time

When Jason's daughter walks with the moving sidewalk, her effective speed is the sum of her walking speed and the speed of the sidewalk. We can set up an equation for this:

171 = (walking speed + 2.5) x 56

Simplifying this equation:

171 = 56walking speed + 140

31 = 56walking speed

walking speed = 31/56 ft/sec

Therefore, the speed of the moving sidewalk is 2.5 ft/sec.

Part 2 of 2:

To find Josie's speed walking on non-moving ground, we can use the same formula:

distance = rate x time

When Josie walks against the moving sidewalk, her effective speed is the difference between her walking speed and the speed of the sidewalk. We can set up an equation for this:

70 = (walking speed - 2.5) x 35

Simplifying this equation:

70 = 35walking speed - 87.5

157.5 = 35walking speed

walking speed = 4.5 ft/sec

Therefore, Josie's speed walking on non-moving ground is 4.5 ft/sec.

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Flintstone Enterprises prepared the following cash budget for June: Cash receipts: $312,000 Cash disbursements: $274,000 Short-term financing: $2,000 What amount will Flintstone Enterprises report for cash on the June balance sheet

Answers

$588000 will Flintstone Enterprises report for cash on the June balance sheet

What is balance sheet?

A balance sheet is a summary of an individual's or organization's financial balances, whether it is a sole proprietorship, a business partnership, a corporation, a private limited company, or another organization such as a government or not-for-profit entity.

A balance sheet provides a snapshot of your company's financial position at any given time. A balance sheet, along with an income statement and a cash flow statement, can assist business owners in evaluating their company's financial standing.

The balance sheet's basic equation is Assets = Liabilities + Equity. Analysts should be aware that various assets and liabilities may be measured differently. Some items, for example, are measured at historical cost or a variation thereof, while others are measured at fair value.

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If the value of the goods and services a country produces increases while its
population stays the same, which statement must be true?
A. The country's unemployment rate has decreased.
B. The country's total GDP has decreased.
C. The country's per capita GDP has increased.
D. The country's rate of inflation has increased.

Answers

If the value of the goods and services a country produces increases while its population stays the same, "the country's per capita GDP has increased."

This is based on the idea that per capita GDP is a form of GDP measure that divides the total GDP, particularly a country with the population or number of people living in that country.

Therefore, when the value of the goods and services a country produces increases while its population stays the same, "the country's per capita GDP has increased."

Hence, in this case, the correct answer is option C. "the country's per capita GDP has increased."

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Answer: The country's per capita GDP has increased. So "C" is right.

Explanation: Just took the quiz

As Lululemon is traditionally a yoga apparel company and Lululemon educators are viewed as educators, performance of yoga poses are included in the selection process. This is an example of




a. Reference checking



b. Application



c. Training



d. Recruitment



e. Testing

Answers

The process of checking for the performance of yoga poses by Lululemon is known as e. Testing.

What is testing?

This is a process by which a prospective employer checks to make sure that a prospective employee can do the job.

In checking the yoga poses of people they want to hire, Lululemon is testing to see if the person can be a good educator that would represent the company well.

In conclusion, option E is correct.

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This is so true don’t you think so ???

This is so true dont you think so ???

Answers

Answer:

yup

Explanation:

Sales taxes collected by a retailer are recorded by.

Answers

Answer:

There recorded by sales

Explanation:

Sales taxes collected by a retailer are recorded as credit to sales taxes payable under the current liabilities section on the balance sheet.

Sales taxes collected by a retailer are typically recorded by the retailer themselves for accounting and reporting purposes.

How is the sales tax collected

This is done to ensure compliance with tax regulations and to accurately track the amount of sales tax owed to the appropriate tax authority.

Retailers usually use point-of-sale (POS) systems or specialized accounting software to record sales transactions and calculate the sales tax amount. These systems are programmed to apply the appropriate tax rate based on the location of the sale and the type of product or service being sold.

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Estelle is a recent accounting graduate, and while she likes the idea raised by her fellow graduate Fernando to set up business in a partnership together, she has always wanted to go into business for herself. Before Estelle makes a decision, her instructor tells her it would be a good idea to consider the effect of different tax structures on each type of business, just in case she favors one situation more than the other. Compare and contrast how partnerships and sole proprietorships differ in terms of their tax requirements.

Sanjay was recently alerted to the fact that his business will be audited by the IRS. What are some possible causes for Sanjay’s business being selected for audit? What will this audit likely entail? How can Sanjay prepare?

After getting his first paycheck, Marlon is incredulous at the amount of money that goes to FICA. “Who in the world is FICA?” he asks his mother. How does she reply?

Eloise has exactly $300 to spend on an airline ticket. Assuming that she will need to pay the passenger ticket tax, the passenger facility charge, and the Sept. 11th fee, what is the maximum base ticket price Eloise can still afford to pay, knowing that she has all these additional fees and taxes to pay? Explain.

Sloan has always been pretty lax about preparing her taxes, and she doesn't pay too much attention to the rules. However, after taking a class on tax fraud, she is a bit concerned that some of the information in her past tax returns may be questionable. Sloan should only be worried about tax fraud if she’s made certain mistakes in the past. What kind of mistakes should Sloan be concerned about? Explain.

Answers

#2 should be $250 not including taxes and fees

Suppose an economy begins in steady state. if the depreciation rate drops by 10%, by what?

Answers


If the depreciation rate drops by 10%, the economy will experience a decrease in the annual reduction of its capital stock by 10%.


Depreciation refers to the decrease in the value of physical capital over time due to wear and tear, obsolescence, and other factors. In a steady state economy, the capital stock remains constant over time as investment and depreciation are equal.

When the depreciation rate drops by 10%, it means that the annual reduction in the value of the capital stock decreases by 10%. This implies that the physical capital is experiencing less wear and tear or becoming obsolete at a slower rate.

For example, let's assume the initial depreciation rate is 5%. If the depreciation rate drops by 10%, it would be reduced to 4.5%. This means that for every $100 worth of capital, instead of losing $5 in value, the economy would only lose $4.50.

This decrease in the depreciation rate can have several effects on the economy. It can increase the longevity of physical capital, allowing it to be used for a longer period before it needs to be replaced. This can lead to cost savings for businesses and potentially higher productivity if the capital is used more efficiently.

Overall, a decrease in the depreciation rate means that the economy can maintain its capital stock for a longer period, potentially contributing to long-term economic growth and stability.

Tagging:

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Select the correct answer.
Which of the following jobs would require good physical health and strength?
A.
Lawyer
B.
Health inspector
C.
Firefighter
D.
City planner

Answers

Answer:

firefighter would require a good psychical health and strength. answer is C

This is for the Globalization Trend Quick Check. (Economics B, Lighthouse Connections)
1) Which of the following correctly describes globalization?(1 point)
A) Globalization is the increase in income inequality within developed countries.
B) Globalization is the process of decreasing per-unit costs with increasing production.
C) Globalization is the process of integration among individuals, businesses, and governments.
D) Globalization is the increase in the value of knowledge and information within an economy.

2) Which of the following is an example of economies of scale?(1 point)
A) A business increases its production of widgets, and the cost of producing each widget decreases.
B) A business increases its production of widgets, and the total cost of production decreases.
C) A business decreases its production of widgets, and the total cost of production decreases.
D) A business decreases its production of widgets, and the cost of producing each widget decreases.

3) Which of the following explains why many small businesses struggle to compete with larger firms?(1 point)
A)Small businesses are unable to offer the same variety of products that larger firms are able to produce.
B) Small businesses are unable to specialize to the degree that larger firms are able to.
C) Small businesses are unable to provide the kinds of products that consumers want.
D) Small businesses are unable to sell their goods at the higher prices set by larger firms.

4) Which of the following is true of a market economy?(1 point)

A) There are no forms of government control or intervention.
B) It inhibits the influence of free trade and exchange on the free market.
C) There are no countries in the world currently transitioning to a market economy.
D) It opens the country's markets to international importing and exporting.

5) Which of the following is true of the economic transition process from a command economy to a market economy?(1 point)
A) The nation changes its fundamental economic organization and begins to minimize the amount of entirely new free market institutions.
B) The nation will attempt to stabilize its economy by establishing various monetary and fiscal policies, reducing market volatility and stimulating economic growth.
C) Individuals and institutions rely more and more on the instruction of and distribution by other people and organizations.
D) The country's markets become less open to international importing and exporting.

Answers

Based on the trends of globalization, the following are true:

C) Globalization is the process of integration among individuals, businesses, and governments.A) A business increases its production of widgets, and the cost of producing each widget decreases.A)Small businesses are unable to offer the same variety of products that larger firms are able to produce.A) There are no forms of government control or intervention.B) The nation will attempt to stabilize its economy by establishing various monetary and fiscal policies, reducing market volatility and stimulating economic growth.

What does globalization mean?

Globalization refers to the tendency of the world to become increasingly integrated across borders.

This means that individuals, businesses and governments, begin to work together more often in order to increase production and market reach.

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Resources that are held by the public are said to be resources in the
A. joint.
B. sharing.
C. common.
D. domain.

Answers

Resources that are held by the public and can be accessed and used by anyone are known as common resources. The correct answer is C. common.

These resources are typically available for public use and are not privately owned or controlled. Examples of common resources include air, water, public parks, and public roads. The concept of common resources is important in environmental and natural resource management, as it raises questions about how to ensure that these resources are used sustainably and equitably.

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What is mobile banking

Answers

Answer:

Mobile banking is the act of making financial transactions on a mobile device.

Explanation:

This activity can be as simple as a bank sending fraud or usage activity to a client's cell phone or as complex as a client paying bills or sending money abroad.

What is the W-4 form used for?
filing taxes with the federal government
determining the amount of money an employee has paid out in taxes
calculating how much tax should be withheld from a person's paycheck
calculating how much income was paid in the previous year

Answers

Answer:

C. calculating how much tax should be withheld from a person's paycheck

Explanation:

In order to ensure that, all employees pay taxes on the income earned throughout the year, the internal revenue service (IRS) has made it compulsory and mandatory for all employers to make available a W-4 Form to all their employees, so as to enable these employees fill out how much income tax is to be withheld from their respective paycheck in relation to their filing status.

Hence, a W-4 form is used for calculating how much tax should be withheld from a person's paycheck and submitted to the internal revenue service (IRS).

Additionally, any employee who defaults in the payment of his or her income tax would be faced with stiff penalties such as failure-to-file, paying a fine etc.

Answer:

its c

Explanation:

just took the unit test on edge

Who carries the animal from the farm to the market or packer?
A. Producer
B. Proccessor
C. Transporter
D. Consumer

Answers

Answer:

was it a passage u had to read?

Explanation:

Answer:

Transporter

Explanation:

You are transferring the animal to the market from the farm.

The demand curve and supply curve for one- year discount bonds with a face value of $1000 are as follows, respectively. Bd: P = 1200 - 0.5 Q Bs: P = 400 + 0.3 Q Where P = price and Q = quantity. a. What is the expected equilibrium price and quantity of bonds in this market? (2.5 marks) b. Given your answer to part (a), what is the expected interest rate in this market? (2.5 marks) As a monetary policy action, suppose the central bank purchases 100 of the bonds. Assuming the bond demand and money demand are held constant, answer the next two questions. c. How does the central bank's action affect the bond demand and supply equations? (2.5 marks) d. Calculate the effect on the equilibrium interest rate in this market as a result of the central bank's action. (2.5 marks)

Answers

Answer:

a. To find the equilibrium price and quantity, we need to set the demand and supply equations equal to each other and solve for Q:

1200 - 0.5Q = 400 + 0.3Q

800 = 0.8Q

Q = 1000

Then we can plug this value of Q into either the demand or supply equation to find the equilibrium price:

P = 1200 - 0.5(1000) = $700

So the expected equilibrium price is $700 and the expected equilibrium quantity is 1000 bonds.

b. To find the expected interest rate, we can use the formula:

Interest rate = (Face value - Price) / Price x (1 / Years to maturity)

Since these are one-year discount bonds with a face value of $1000, the years to maturity is 1. Plugging in the equilibrium price of $700, we get:

Interest rate = (1000 - 700) / 700 x (1/1) = 0.43 or 43%

So the expected interest rate in this market is 43%.

c. If the central bank purchases 100 of the bonds, this will decrease the quantity of bonds available in the market, shifting the supply curve to the left. The new supply equation will be:

P = 400 + 0.3(Q-100)

where Q is the total quantity of bonds available in the market.

d. To calculate the new equilibrium interest rate, we need to find the new equilibrium price and quantity. Setting the new supply equation equal to the demand equation, we get:

1200 - 0.5Q = 400 + 0.3(Q-100)

Simplifying this equation, we get:

Q = 940

P = 676

Plugging these values into the interest rate formula, we get:

Interest rate = (1000 - 676) / 676 x (1/1) = 0.48 or 48%

So the effect of the central bank's action is to increase the interest rate from 43% to 48%.

You are considering a safe investment opportunity that requires a $1,170 investment today, and will pay $790 two years from now and another $540 five years from now. a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain.

Answers

The Internal Rate of Return (IRR) of this investment is approximately 7.72%.

a. To calculate the Internal Rate of Return (IRR) of this investment, we need to find the discount rate that equates the present value of the cash inflows to the initial investment. In this case, the cash inflows are $790 in two years and $540 in five years.

Using the IRR formula, we set up the equation:
$1,170 = $790 / (1 + IRR)^2 + $540 / (1 + IRR)^5

Simplifying the equation, we get:
$1,170 = $790 / (1 + IRR)^2 + $540 / (1 + IRR)^5

We can solve this equation using trial and error, or by using financial calculators or Excel. The Internal Rate of Return of this investment is approximately 7.72%.

b. To compare the investment with a safe bank account that pays an Effective Annual Rate (EAR) of 5% per year, we need to consider the time horizon. The IRR of the investment represents the rate of return over the entire investment period. However, the EAR of the bank account represents the rate of return for each year.

To make an informed decision, we need to compare the IRR of the investment with the EAR of the bank account over the same time horizon. If the IRR is higher than the EAR, the investment would be more profitable. If the IRR is lower than the EAR, the bank account would be the better option.

Therefore, you cannot simply compare the EAR with the IRR to make a decision because they represent different time periods. You need to consider the time horizon and compare the rates of return over the same time frame to make an informed decision.

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1. what are the ways in which computer networks can help trendywidgets in its business? think of all the different ways in which the company can use computer networks at all its different offices.

Answers

Computer networks can help TrendyWidgets in its business by providing efficient communication, streamlined data sharing, and improved productivity across all its offices.

TrendyWidgets can use computer networks to enable video conferencing, instant messaging, and email communication between employees, clients, and partners. The company can use computer networks to store and share data, such as customer information, product details, and sales reports, between different departments and locations.

With computer networks, employees can access shared resources, such as printers, files, and databases, from any office location, which can increase productivity and reduce duplication of work. Computer networks can enable employees to work remotely, allowing for greater flexibility and reduced overhead costs.

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