Project a Requires an Original Investment of $50,000 Below Is a Table for the Present Value of an Will

question 82

Essay

Project A requires an original investment of $50,000. The project will yield cash flows of $15,000 per year for 7 years. Project B has a calculated net present value of $13,500 over a 4-year life. Project A could be sold at the end of 4 years for $25,000. a) Using the table below, determine the net present value of Project A over a 4-year life with salvage value assuming a minimum rate of return of 12%. b) Which project provides the greatest net present value?
Below is a table for the present value of $1 at compound interest. $$\begin{array} { l l l l } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636 \\5 & 0.747 & 0.621 & 0.567\end{array}$$ Below is a table for the present value of an annuity of $1 at compound interest. $$\begin{array} { l l l l } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 1.833 & 1.736 & 1.690 \\3 & 2.673 & 2.487 & 2.402 \\4 & 3.465 & 3.170 & 3.037 \\5 & 4.212 & 3.791 & 3.605\end{array}$$

Understand and apply terms related to receivables and interest calculations.

Utilize the direct write-off and allowance methods for accounting for uncollectible receivables.

Journalize transactions involving the write-off and recovery of uncollectible receivables.

Estimate bad debt expense and understand its impact on financial statements.

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School Segregation

The practice of separating students in educational institutions based on race, often resulting in unequal resources and opportunities.

Housing Patterns

Refers to the distribution and arrangement of where people live, often influenced by factors like socioeconomic status, race, and urban planning.

Racial Mandates

Policies or directives that are enforced based on race, often leading to discrimination or segregation.

Americans with Disabilities Act

A landmark civil rights law passed in 1990 in the United States that prohibits discrimination against individuals with disabilities in all areas of public life.