Ontario resources, a natural energy supplier, borrowed $80 million cash on nov 1, 2006 to fund geological survey. the loan was made by quebec banque under a short-term credit line. ontario resources issues a 9 month, 12% promissory note with interest payable at maturity. ontario resources' fiscal period is the calendar year. 1)prepare the journal entry for the issuance of the note by ontario resources 2) prepare the appropiate adjusting entry for the note by ontario resources on dec. 31, 2006. (show calculations) 3)prepare the journal entry for the payment of the note at maturity. (show calculations)

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is: