Answer: $7924. 5
Explanation:
Given the following :
Cost of new equipment and timbers - $275,000
Working capital required - $100,000
Annual net cash receipts - $120,000
Cost to construct new roads in year three - $40,000
Salvage value of equipment in four years - $65,000
Kindly check attached picture for Explanation
Answer: Restructuring cost
Explanation:
Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.
Answer:
11 years
Explanation:
For computing, the number of years or the account will be fully depleted we need to apply the NPER formula i.e to be shown in the attachment below:
Given that,
Present value = $100,000
Future value = $0
PMT = $12,000
Rate of interest = 5%
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years in which the account is depleted is 11 years