What is the difference between PV Value (Present Values) of offer A and B at 12%?

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Journal Entry – Accounting
Ms Novelty Ice-cream was started by Raman Sharma who conducted the following transaction in the next ten days. Help Raman in preparing a journal entry
Note: (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
• He invested an amount of Rs 100,000 cash in the business on 01/04/2019.
o Out of the total invested, he keeps Rs 25,000 cash and rest Rs75,000 is deposit in the Bank account 04/04/2019
• He purchased ice-cream making machine for Rs35,000 and paid cheque on 06/04/2019
• Raw material was purchased for Rs 3,000 on 09/04/2019
• He Sold ice-cream for Rs 5,200 on 10/04/2019
Question 1. The following accounts are involved in the transaction done on 09/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Purchase Account
B) Purchase and Raw Material Account
C) Cash and Sales Account
D) Cash and Business Account
Question 2. The following accounts are involved in the transaction done on 01/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Business Account
B) Cash and Capital Account
C) Capital and Business Account
D) None of the above
Question 3. The following accounts are involved in the transaction done on 10/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Ice-Cream account
B) Bank and Sales Account
C) Cash and Sales Account
D) Cash and Raman’s Account
Question 4. The following accounts are involved in the transaction done on 6/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Cash and Machinery Account
B) Cheque and Machinery Account
C) Cash and Cheque Account
D) Machinery and Bank Account
Question 5. The following accounts are involved in the transaction done on 04/04/2019 (pick from the multiple choice and explain Which one is Debit and Which one is Credit)
A) Bank and Capital Account
B) Cash and Capital Account
C) Cash and Bank Account
D) Bank and Business Account
Time Value of Money
You have been hired as a financial advisor to Mr Sam. He has received two offers for playing for IPL and wants to select the best offer, based on consideration of money only. What will be your advice? (Hint: Compare the Present Value of each offer by assuming a range of interest, say 8% – 14%)
Note: Please show the formula and calculation for the answer selected
Offer:
A) Offer A is a $10million offer for $2million a year for 5 years
B) Offer B is a $11million offer of $1million a year for four years and $7million in year 5th
Question 1. What is the difference between PV Value (Present Values) of offer A and B at 12%?
A) $0.1 million
B) $0.2 million
C) $0.7 million
D) $0.8 Million
Question 2. At 8% interest rate what would be the PV (Present Value) for Offer A
A) $8.1 Million
B) $8.4 Million
C) $8.3 Million
D) $7.9 Million
Question 3. At 10% interest rate what would be the PV (Present Value) for Offer B
A) $7.5 Million
B) $8.1 Million
C) $8.9 Million
D) $8.5 Million
Question 4. At 14% interest rate what would be the PV (Present Value) for Offer B
A) $6.5 Million
B) $8.2 Million
C) $8.3 Million
D) $8.5 Million
Question 5. What is the difference between PV values (Present Values) of offer A and Offer B at 10%?
A) $0.05 Million
B) $0.06 Million
C) $0.07 Million
D) $0.08 Million

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