Answer:
A)Choose A B) Choose B C) 0.45
Explanation:
We will use the NPV formula to calculate the IRR and them choose investment opportunity with a high IRR
NPV (A)=CF/R -II
0 =2.4/r -10 m
r=0.24/24%
NPV(B)=1.8/r-0.045-10
0=1.8/r-0.045-10
r=0.135/13.5%
Therefore choose A
B)NPV (A)
=2.4/0.064-10
=$27.5 MIL
NPV (B)
=1.8/0.064-0.045 -10
=1.8/0.019-10
=$84.74 MIL
Therefore choose B as it has higher NPV
C) Equate the NPV to in order to calculate the cost of capital
2.4/r -10 =1.8/r-0.045 -10
2.4/r=1.8/r-0.045
1.8r=2.4r-0.108
0.6r=0.108
r=0.556/5.56%
=
Answer:
1. Compute the annual depreciation expense prior to the change in estimates.
annual depreciation = ($396,000 - $36,000) / 50 = $7,200 per year
2. Compute the annual depreciation expense after the change in estimates.
annual depreciation = ($324,000 - $30,000) / 20 = $14,700 per year
3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
Any changes in an asset's useful life are reported prospectively, this means that they do not affect any past records, only future records are affected. In this case, the depreciation expense per year will increase form $7,200 to $14,700, so net income will be negatively affected by it. Cash flows will not be affected, since depreciation expense is a non-cash expense. P,P&E on the balance sheet will be affected because the net value of the building will decrease faster.
Answer:
program goals, criteria for selection, a plan for onboarding and a plan for continued engagement
Answer:
The ending retained earning would be $2,400
Explanation:
For computing the ending retained earnings balance, we have to use the formula which is shown below:
Even in the question, the formula is given so we use it
Ending retained earnings = Beginning retained earnings + net income - dividend
Ending retained earnings = 0 + $6,000 - $3,600
In the question, the beginning retained earnings balance is not given so we assume zero balance
So, the ending retained earnings would be $2,400