Elburn supply co. has the following transactions related to notes receivable during the last 2 months of 2017. the company does not make entries to accrue interest except at december 31. nov. 1 loaned $18,600 cash to manny lopez on a 12-month, 10% note. dec. 11 sold goods to ralph kremer, inc., receiving a $47,250, 90-day, 8% note. dec. 16 received a $58,200, 180 day, 8% note in exchange for joe fernetti’s outstanding accounts receivable. dec. 31 accrued interest revenue on all notes receivable. a. journalize the transactions for elburn supply co. (use 360 days for calculation. record journal entries in the order presented in the problem.)b. record the collection of the lopez note at its maturity in 2018.

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.