Answer:
The answer and procedures of the exercise are attached in the following archives.
Explanation:
Consider this explanation too
The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.
Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.
Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.
Answer: Option (d)
Explanation:
Under this case the write off will be as follow:
Debit Credit
Allowance for doubtful accounts 25,200
Accounts receivables 25,200
Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.
<span>The person most qualified to assess the overall risk in a work package activity in a project is the team member and / or line manager.
The team member cannot be the only one who will assess such risks - he will need to be accompanied by the line manager, or the manager can do it on his own. PR and sponsors do not deal with such actions - PR deals with public relations, and sponsors with giving money.
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Some people might reject the gospel message because they have a different opinion on the matter, they have a different religion, or they simply don't understand. People tend to reject things they don't understand.
