Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
Risk tolerance gets lower and lower as you get closer to needing the money from your investment.
If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.
Answer:
The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%
Explanation:
Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:
funds raised=$500,000/0.96=$520,833.33
Annual return on investment=cash inflow-initial cash outflow
cash inflow is $600,000
cash outflow is $520,833.33
annual return on investment=$600,000-$520,833.33=$79166.67
rate of return on project=annual return on investment/initial investment
=$79,166.67
/$520,833.33*100=15.20%
The rate of return that Cold Goose Metal Works Inc is 15.20%
Answer:
will probably indicate less than $2 million in merchandise on hand.
Explanation:
Perpetual inventory system is when information regarding quantity and availability in inventory of a business is continuously updated. Sale or purchase big inventory is recorded immediately with the use of computerised point of sale systems.
The department store uses a perpetual inventory system. At year-end, it shows a balance in the merchandise inventory account of $2 million. The physical inventory will probably be less than $2 million because it adjust its records to make the recorded inventory amount agree with the actual inventory on hand at end of year.
