<u>Solution and Explanation:</u>
(a)-<u>NPV if the Discount Rate is Zero
</u>
If the Discount Rate is Zero, the NPV of the Project is the sum of the Future cash flows deducted by Initial Investment
Net Present Value (NPV) 
= $256,430
If the Discount Rate is Zero, The NPV will be $256,430”
(b)-<u> NPV If the discount rate is infinite
</u>
If the Discount Rate is Infinite, the NPV of the Project is the Initial Investment
NPV = -$534,800 (Negative)
- Here are five examples of South Africa's successful competition policy: 1) Consumers were given a variety of product options as well as affordable pricing. 2) In 1984, horizontal collusion and resale price maintenance were ruled illegal.
Answer:
the actual worth today is $5,124,150.29
Explanation:
The computation of the actual worth today is as follows:
= (Year end annual payments) ÷ (rate of interest) × (1 - (1 + rate of interest)^-time period
= ($333,333.33) ÷0.05 × (1 - (1 + 0.05)^-30
= $5,124,150.29
hence, the actual worth today is $5,124,150.29
The above formula should be applied
Cost of good sold; average inventory
Answer:
$510,000
Explanation:
No.of bonds issued = $600,000 / $1000 = 600
Total no. of stock warrants = 600 x 50 = 30,000
Market Value of stock warrants = 30,000 x $4 = $120,000
Issue price of bonds = $600,000 x 1.05 = $630,000
Amount to be recorded as increase in liabilities = Issue price of bonds - Value of stock warrants
= $630,000 - $120,000
= $510,000