Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
Accounting, Binder Ready Version: Tools for Business Decision Making - Standalone book
6th Edition
ISBN: 9781119191674
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
Question
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Chapter H, Problem 7Q

(a)

To determine

 
Explain the accounting treatment of long-term investment in common stock.

(b)

To determine

Explain the recognition of revenue under equity method.

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You invest $1,500 today to purchase a new machine that is expected to generate the following revenues over the next 4 years:   Year 0 1 2 3 4 Cash flow -1500 300 475 680 490   Find the internal rate of return (IRR) from this investment. What would be the net present value (NPV) if the interest rate is 10%?   An investment project provides cash inflows of $560 per year for 10 years. What is the project’s payback period if the initial cost is $2,500? What if the initial cost is $3,250?
Please help me with this question general Accounting
Answer? ? Financial accounting
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