Answer:
closest to: B) $7777
Explanation:
NPV ( net presetn value) cashflow - investment
<u>cost savings present value (ordinary annuity):</u>
C $8,500
time 5 years
rate 0.12
PV $30,640.5977
salvage value present value:
Salvage $2,000
time 5
rate 0.12
PV 1,134.85
NPV: 30,640.60 + 1,134.85 - 24,000 = 7,775.45
The normal rate of return on equity capital is also known as the opportunity cost of capital
Answer:
a) Property
Explanation:
A property right is the exclusive or sole authority which determines the legal ownership of tangible and intangible resources and how these resources are to be used, whether by individuals or government.
Basically, properties can either be owned by the government, an individual or business entity. Some examples of a property include cars, land, houses, machines, books, inventions, mobile phones, ideas, birds, etc.
Hence, property rights refers to a set of rights to control a tangible or intangible thing.
Answer:
$35,000
Explanation:
According to accounting standard IFRS 16 Property, Plant and Equipment is initially recorded at its cost. Estimated market value and offer price will not be considered to record this transaction. Cost incurred for this equipment is as follow:
Cash payment = $15,000
Note payable = $20,000
Total Cost = $15,000 + $20,000 = $35,000
