Answer:
New Current ratio will be 1.82
Explanation:
Current assets = $1,490,000
Current liabilities = $820,000
New stock issued = $175000
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $1,490,000 / $820,000
Current Ratio = 1.8171 = 1.82
New Stock issue will not effect the current ratio as current ratio only deals the current assets and current liabilities ( as given in formula above ). Any equity transaction will not effect this ratio.
Answer and Explanation:
Year Cash Inflow Discounting factor 9%, 12 Years Present Value
0 -$8,200 1 -$8,200.00
1 $1,350 0.8929 $1,205.42
2 $1,295 0.7972 $1,032.37
3 $1,240 0.7118 $882.63
4 $1,185 0.6355 $753.07
5 $1,130 0.5674 $641.16
6 $1,075 0.5066 $544.60
7 $1,020 0.4523 $461.35
8 $965 0.4039 $389.76
9 $910 0.3606 $328.15
10 $855 0.322 $275.31
11 $800 0.2875 $230.00
12 $745 0.2567 $191.24
Net Present Value -$1,264.95
Since the net presnet value comes in negative so it is not beneficial for a company as it is not able to cover the initial investment
Answer:
the company should buy and install the press because the NPV of the project is positive ($73,133.75)
Explanation:
the MACRS 5 year depreciation:
- $375,000 x 20% = $75,000
- $375,000 x 32% = $120,000
- $375,000 x 19.2% = $72,000
- $375,000 x 11.52% = $43,200
- $19,800, since salvage value at year 5 is $45,000
- $0 x 5.76% = $0
salvage value $45,000
total initial investment = $375,000, discount rate = 11%
- cash flow year 1 = {($142,000 - $15,000 - $75,000) x (1 - 34%)} + $75,000 = $109,320
- cash flow year 2 = {($142,000 - $2,000 - $120,000) x (1 - 34%)} + $120,000 = $133,200
- cash flow year 3 = {($142,000 - $2,000 - $72,000) x (1 - 34%)} + $72,000 = $116,880
- cash flow year 4 = {($142,000 - $2,000 - $43,200) x (1 - 34%)} + $43,200 = $107,088
- cash flow year 5 = {($142,000 - $2,000 - $19,800) x (1 - 34%)} + $19,800 + $45,000 = $144,132
the NPV of the project = -$375,000 + $109,320/1.11 + $133,200/1.11² + $116,880/1.11³ + $107,088/1.11⁴ + $144,132/1.11⁵ = $73,133.75
I believe the answer is: it gives a special tax break to employees who are saving primarily for retirement.
This make the taxpayers able to maxmize their purchasing power prior to their retirement. Which allow them to do things such as putting more money down on their mortrage, improve their standard of living, increasing their life saving, or putting of some of their income in various type of investments.
Answer: M2
Explanation: M2 is the most commonly quoted monetary aggregate as it includes all the component of M1 plus assets that are not directly accepted as a means of payment.
This monetary aggregate includes small denomination time deposits, shares in mutual funds and other money market securities. Thus, it is also called broad money.
