Answer:
$85,931.40
Explanation:
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator:
Cash flow in year 0 = $20,000
Cash flow in year 1 = $35,000
Cash flow in year 2 = 0
Cash flow in year 3 = $45,000
Discount rate = $85,931.40
I hope my answer helps you
Answer:
The answer to this question is E.database.
Explanation:
Answer:
If it was likely or probable that the farm co-op would meet the benchmark and get the discount (or rebate), then the journal entry should recognize that. But since it is very doubtful that the benchmark will be met, then the journal entry should be made without considering any type of discount.
I looked for a similar question in order to find the missing numbers:
each trencher is sold at $3,600 and costs $2,000
August 10, 2019, 16 mini trenchers sold to farm co-op
Dr Accounts receivable 57,600
Cr Sales revenue 57,600
Dr Cost of goods sold 32,000
Cr Inventory 32,000
Answer:
$4,200,000
Explanation:
Given :
Annual interest payment = $20 million
Tax rate = 21%
Cost of debt = 6%
The value of the interest rate tax shield is given by :
The tax rate * annual interest payment
Tax rate = 21% = 21/100 = 0.21
Annual interest payment = $20,000,000
The value of interest rate tax shield = (0.21 * $20,000,000) = $4,200,000