The following information is taken from the records of Jasper Inc. at January 31, 2023, after its first month of operations. Assume no dividends were declared in January. Choose 8 steps for hiring the best employees Project B as it has the highest NPV.

## EXERCISE 1–8 (LO Net Income, Shares Issued

From another point 20 m away from this point on the line joining this point to the foot of the tower, the angle of elevation of the top of the tower is 30° (see Fig. 9.12). Find the height of the tower and the width of the canal. BC be the distance between the foot of the building and the tower. The elevation is 30 degrees and 60 degrees from the tower and the building, respectively. Thus, the distance boy walked towards the building is 57/√3 m.

This is the business’s second year of operations. As observed from the top of a 75 m high lighthouse from the sea level, the angles of depression of the two ships are 30° and 45°. If one ship is exactly behind the other on the same side of the notes payable vs accounts payable lighthouse, find the distance between the two ships.

We identify the size problem by looking for different initial investments. Projects AC, AD, BC, and BD all are pairs with different initial investments. However, we also want to find a pair of projects without the reinvestment rate problem. Since A and C are both frontloaded while B and D are both backloaded, they should not suffer from the reinvestment rate problem. Therefore, you could select either AC or BD as an answer for a pair of projects that could suffer from the size problem, but not the reinvestment rate problem. The final issue is why know about IRR given its flaws?

The higher IRR for project C is irrelevant and is caused by the different sizes of the projects. Again, when there are conflicts among the rules always follow NPV. A straight highway leads to the foot of a tower. A man standing at the top of the tower observes a car at an angle of depression of 30°, which is approaching the foot of the tower with a uniform speed. Six seconds later, the angle of depression of the car is found to be 60°.

LO 10.5Compute Westtown Company’s (A) inventory turnover ratio and (B) number of days’ sales in inventory ratio, using the following information. LO 10.2Complete the missing piece of information involving the changes in inventory, and their relationship to goods available for sale, for the two years shown. The angles of elevation of the top of a tower from two points at a distance of 4 m and 9 m from the base of the tower and in the same straight line with it are complementary. Prove that the height of the tower is 6 m. Here, the distance of BC is half of CD.

## PROBLEM 1–1 (LO4, Preparing Financial Statements

Because IRR and NPV make the same accept reject decision, either can be used for independent projects. It is only for mutually exclusive projects where we will have problems due to different rankings of which project is best. Since most of the cash flows in Project B are at the end of the time, they are not greatly affected by the reinvestment rate assumption. We know that this problem is due to reinvestment and not size as the initial investments are the same, but the timing of cash flows is different.

Therefore, you could select either AB or CD as an answer for a pair of projects that could suffer from the reinvestment rate problem, but not the size problem. LO 10.3Prepare journal entries to record the following transactions, assuming perpetual inventory updating and last-in, first-out (LIFO) cost allocation. LO 10.3Prepare journal entries to record the following transactions, assuming perpetual inventory updating and first-in, first-out (FIFO) cost allocation. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating.

## EXERCISE 1–12 (LO Correcting Financial Statements

Let the initial position of the balloon be A and the final position be B. A is the point from where the elevation of the tower is 60°, and the angle of depression of its foot is 45°. A TV tower stands vertically on a bank of a canal. From a point on the other bank directly opposite the tower, the angle of elevation of the top of the tower is 60°.

It helps the students to revise all the exercise solutions given in the chapter in an accessible format. The NCERT Solutions for Class 10 Maths consists of all solutions explained comprehensively, which is useful for the students to revise the concepts. Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Two poles of equal heights are standing opposite each other on either side of the road, which is 80 m wide. From a point between them on the road, the angles of elevation of the top of the poles are 60° and 30°, respectively. Find the height of the poles and the distances of the point from the poles. The angle of elevation of the top of a building from the foot of the tower is 30°, and the angle of elevation of the top of the tower from the foot of the building is 60°. If the tower is 50 m high, find the height of the building.

- Six seconds later, the angle of depression of the car is found to be 60°.
- The NCERT solutions are written as per the guidelines and recently revised syllabus of the CBSE board.
- Jan 1 Issued $100,000 in stock to owners in exchange for cash to start the business.
- So NPV is only needed when a problem exists.
- Thus, whenever the IRR is higher than the required return the NPV will be positive and whenever the IRR is less than the required return the NPV will be negative.

## EXERCISE 1–10 (LO Net Income, Dividends, Shares Issued

The second part of the question is why bother with PP since it has so many flaws? First, one recent survey estimates that over 50% of firms (see Ch. 8) use PP either always or often in their capital budgeting process. Since so many firms use this decision rule, it is important to know how to calculate PP and what it is telling us. It is also important to know its flaws so we know its limitations as a decision rule. The second reason to know PP is that there are two specific situations where PP can be useful. One is for extremely risky projects where there is a significant chance that the project life will be shorter than anticipated.

## License

Also, a decision rule that does not meet all four criteria is not necessarily worthless. Instead it means that it has some obvious flaws that must be recognized. From the top of a 7 m high building, the angle of elevation of the top of a cable tower is 60°, and the angle of depression of its foot is 45°. ➢ Give an example from your personal life that illustrates your use of accounting information in reaching a decision. Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______.

If any of the items are not to be recorded, leave the row blank.

The office manager, inexperienced in accounting, prepared the following statement for the business’s most recent month ended August 31, 2023. Choose Projects B and C as both have positive NPVs. While the PP exceeds T for project B, unless the company has significant financial problems and/or is severely concerned about the project lasting the four years. NPV is the best decision rule, so when the decision rules give conflicting results, go with NPV. The following list shows the various ways in which the accounting equation might be affected by financial transactions.