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1.In 2013, the internal auditors of Development Technologies, Inc., discovered that
(a) 2012 accrued wages of $2 million were not recognized until they were paid in 2013 and
(b) A $3 million purchase of merchandise in 2013 was recorded in 2012 instead. The physical inventory count at the end of 2012 was correct. Ignoring income taxes, what journal entries are needed in 2013 to correct each error? Also, briefly describe any other measures Development Technologies would take in connection with correcting the errors.
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This would mean that in year six, the cash flow would be $800,000. However, it is also projected for Project B that in years three and four there will be an additional capital outlay of $100,000 for each year. Compute the NPV, IRR, Payback for bot..
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