Answer:
B. The amount paid 4 years ago for an existing building to be used in the project
Explanation:
As this value is sunk it should be ignored. The company should think on project for the building considering his market value.
Also, the amount of working capital (used in the project in form of accounts receivable, account payable, prepaid and others) is important as this release increase the cash flow of the project.
The salvage value is also important as will provide cash flow as well.
As general rule, always look into the future to evaluate the projects never at historic cost.
The type of share owns by Mark is COMMON STOCK. Common stock is a security that represent ownership in a corporation.Owners of common stock have the right to elect board of directors, to vote on corporate policy and to receive in form of dividends part of the corporation's profits.
Answer:
these are skills that we learn from others
Answer:
The net income amount is $101250
The income statement is made in the explanation part.
Explanation:
<u>Income Statement</u>
$ $
Sales 950000
Less:COGS <u>(400000)</u>
Gross profit 550000
<u>Less:Expenses</u>
Selling &Marketing expenses 160000
General & Admin expenses 200000
Depreciation <u>30000 </u> <u>(390000)</u>
Operating Profit 160000
less: Interest expense <u>(25000)</u>
Earnings before tax 135000
less: Tax (at 25%) <u>(33750)</u>
Net Income <u>101250</u>
Answer:
$90,119.405
Explanation:
Given:
Periodic payment (p) = $25,000
Number of payment (n) = 5
Interest rate (r) = 12% = 12 / 100 = 0.12
Present value = ?
Computation of Present value :
![Present\ Value = PMT [\frac{1-(1+i)^{-n}}{i}] \\\\ Present\ Value= 25,000 [\frac{1-(1+0.12)^{-5}}{0.12}]\\\\Present\ Value= 25,000 [\frac{1-(1.12)^{-5}}{0.12}]\\\\Present\ Value= 25,000 [\frac{1-0.567426856}{0.12}]\\\\Present\ Value= 25,000 [\frac{0.432573144}{0.12}]\\\\Present\ Value= 25,000 [3.6047762]\\\\Present\ Value= 90,119.405](https://tex.z-dn.net/?f=Present%5C%20Value%20%3D%20PMT%20%5B%5Cfrac%7B1-%281%2Bi%29%5E%7B-n%7D%7D%7Bi%7D%5D%20%5C%5C%5C%5C%20Present%5C%20Value%3D%2025%2C000%20%5B%5Cfrac%7B1-%281%2B0.12%29%5E%7B-5%7D%7D%7B0.12%7D%5D%5C%5C%5C%5CPresent%5C%20Value%3D%2025%2C000%20%5B%5Cfrac%7B1-%281.12%29%5E%7B-5%7D%7D%7B0.12%7D%5D%5C%5C%5C%5CPresent%5C%20Value%3D%2025%2C000%20%5B%5Cfrac%7B1-0.567426856%7D%7B0.12%7D%5D%5C%5C%5C%5CPresent%5C%20Value%3D%2025%2C000%20%5B%5Cfrac%7B0.432573144%7D%7B0.12%7D%5D%5C%5C%5C%5CPresent%5C%20Value%3D%2025%2C000%20%5B3.6047762%5D%5C%5C%5C%5CPresent%5C%20Value%3D%2090%2C119.405)
We be will invest $90,119.405 (approx).
