Martinez Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. Aug. 2 Invested $11,440 cash and $2,350 of equipment in the business.
7 Purchased supplies on account for $490. (Debit asset account.)
12 Performed services for clients, for which $1,380 was collected in cash and $640 was billed to the clients.
15 Paid August rent $555.
19 Counted supplies and determined that only $245 of the supplies purchased on August 7 are still on hand.

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.