Answer:
Opportunity 1 results in a greater NPV.
Explanation:
NPV of Opportunity 1 = (Cash received in Year 5 / (100% + Discount rate)^Number of years) - Cash payment now = ($14,000 / (100% + 6%)^5) - $4,000 = $10,461.61 - $4,000 = $6,461.61
NPV of Opportunity 2 = (Cash received in Year 3 / (100% + Discount rate)^Number of years) + (Cash received in Year 5 / (100% + Discount rate)^Number of years) = ($3,500 / (100% + 6%)^3) + ($3,500 / (100% + 6%)^5) = $2,938.67 + $2,615.40 = $5,554.07
Since NPV of Opportunity 1 which is $6,461.61 is greater than NPV of Opportunity 2 which is $5,554.07, this implies that Opportunity 1 results in a greater NPV.
Answer:
The Company's cash cycle is 17.3 days
Explanation:
The cash cycle is computed by the following formula:
Receivable No of days+ Inventory No of days- Payables No of days
31.4 days + 22.4 days - 36.5 days = 17.3 days
In the above question, Ives Corp is making an efficient operation of its cash resources. The payables are more than inventory, so the payables are financing the inventory as well as partly the receivables.
Answer:
Par value of the stock
Explanation:
Par value is per share amount that will show up on some stock declarations and in the enterprise's articles of fuse.
On account of regular stock the standard worth per share is normally a limited quantity, for example, $0.10 or $0.01 and it has no association with the market estimation of the portion of stock.
Par value is the assumed worth of a security, Par an incentive for an offer alludes to the stock worth expressed in the corporate contract. Offers for the most part have no standard esteem or exceptionally low standard worth, for example, one penny for each offer. On account of value, standard worth has almost no connection to the offers' market cost.
Answer: capitalism
Explanation: Capitalism defines a socio-economic system that is based on private property rights, including the private ownership of resources or capital, with economic decisions made largely through the operation of a market unregulated by the state. The ever constant revolutionizing of production, the uninterrupted disturbance of all social condition, uncertainty amongst others have been pivotal in setting is apart from other economic systems. It respects the conditions necessary for humanity to succeed as well as propelling innovation and prosperity in modern societies.
Answer:
2019 Amortization =$1,540
2019 Book Value=$13,860
2019 Amortization =$2,440
2019 Book Value=$19,520
Explanation:
Computation for 2019 amortization, 12/31/19 book value, 2020 amortization, and 12/31/20 book value if the company amortizes the trade name over 10 years.
Calculation for 2019 Amortization (15,400 ÷ 10)
= 1,540
Calculation for Book Value of December 31, 2019
= 15,400 – 1,540
= 13,860
Calculation for 2020 Amortization will be:
(13,860 + legal fees 8,100) ÷ 9)
= 21,960÷9
= 2,440
Calculation for the Book Value of December 31, 2020
13,860 -2,440
=11,420
= 11,420+8,100
=$19,520