Asset: 120,000
Year 1: estimated useful life of 10 years. residual value of 10,000
120,000 - 10,000 = 110,000 / 10 years = 11,000 annual depreciation.
Start of year 3.
estimated useful life of 4 years. residual value of 2,000
120,000 - 2,000 = 118,000 / 4 = 29,500 annual depreciation.
29,500 x 2 = 59,000
11,000 x 2 = 22,000
59,000 - 22,000 = 37,000
59,000 + 37,000 = 96,000 / 2 = 48,000 annual depreciation for year 3 and year 4.
Beginning Balance: 120,000
Less: Depreciation:
Year 1 11,000
Year 2 11,000
Year 3 48,000
Year 4 48,000 <u> (118,000)</u>
Residual Value 2,000
Answer:
False
Explanation:
Whenever, there will be reduced production costs, due to any reason in the economy, then the goods will be cheaper and accordingly the sale will be in abundance assuming other factors remain constant.
Thus, due to subsidies the cost to producers will be less and then exporters will not be able to get more share as domestic goods will cost cheaper.
Thus, there will not be any gain to foreign competitors in our domestic markets, as they will not get any share extra rather they will loose as a foreign competitor. In fact goods which are exported will also cost low, and therefore, will gain new customers.
Therefore, above stated statement is false.
Answer:
$6,694.56 million
Explanation:
EBIT = $800
corporate tax = 40%
the company's intrinsic value = FCF / (WACC - g)
since g = 0, then the intrinsic value = FCF / WACC
first we need to determine the free cash flow and then the WACC to determine the intrinsic value of the company:
- FCF = $800 x (1 - 40%) = $480
- WACC = (30% x 12%) + [70% x 8.5% x (1 - 40%)] = 3.6% + 3.57% = 7.17%
company's intrinsic value = $480 / 7.17% = $6,694.56
Answer:
consultation
Explanation:
From the question we are informed about Charlotte knows that John's support will be essential in having her proposal accepted by senior management, so she meets with him informally. "I'd like to get your thoughts on the best approach on getting the staff trained on the new software," she says. "What are your thoughts on the next steps I need to take to get management's approval?" In this case, influence tactic is Charlotte using consultation.
Consultation can be regarded as an influence agent's that seeks help from others by directly influencing another person or group. This tactic focuses on ways to gett others so they can participate in a particular planning process as well as making decisions. This tactic also encourage changes. In this tactic the person that is needed to make participation is first put in good mood before the making of a request, this could be through been friendly or being helpful to him or her.
Answer:
$63.56 million
Explanation:
We are to find the present value of the cash flows in order to determine the value of the contract today
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 0 = $4.00 million
Cash flow in year 1 = $12.09 million
Cash flow in year 2 = $13.36 million
Cash flow in year 3 = $14.17 million
Cash flow in year 4 = $15.26 million
Cash flow in year 5 = $16.43 million
I = 6%
Present value = $63.56 million
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute