<u>Solution and Explanation:</u>
(a)-<u>NPV if the Discount Rate is Zero
</u>
If the Discount Rate is Zero, the NPV of the Project is the sum of the Future cash flows deducted by Initial Investment
Net Present Value (NPV) 
= $256,430
If the Discount Rate is Zero, The NPV will be $256,430”
(b)-<u> NPV If the discount rate is infinite
</u>
If the Discount Rate is Infinite, the NPV of the Project is the Initial Investment
NPV = -$534,800 (Negative)
Answer:
$208
Explanation:
Using the FIFO Inventory method, inventory items are assumed to be sold in the order in which they were purchased from the earliest to the latest.
The order of purchase of the inventory items are.
Jun. 1, DVD Player 1012, $113
Nov. 1, DVD Player 1045, $95
Nov. 31, DVD Player 1056, $88
Therefore, if two of the three items are sold, the cost of goods sold is the cost of the first two items purchased
= 113 + 95 = $208.
Answer:
Engineering Wonders' net cash flows from operating activities are $61.8 million
Explanation:
Net income from operating activities = net income - gain on the sale of land + building depreciation expense = $56.0 - $1.4 + $4.6 = $59.2 million
Engineering Wonders' net cash flows from operating activities = Net Income from operating activities + Decrease in Accounts Receivable + Decrease in Inventory - Decrease in accounts payable = $59.2 + $1.6 + $3.6 - $2.6 = $61.8 million
Answer:
Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2
Explanation:
The Coupon payment = 0.08 * 1000 = 80
The Payment at EOY 1 = 80
The Payment at EOY 2 = 80 + 1000 = 1080
market interest rate = 4%
Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2
Answer:
Rita's basis in her partnership interest is $35000
Explanation:
given data
cash = $10,000
fair market value = $150,000
adjusted basis = $55,000
liability = $60,000
to find out
Rita's basis in her partnership interest
solution
we know both Rita and Gerry half of total liability
we get here 50% share on debt that is
50% share on debt = 50% × liability
50% share on debt = 0.50 × $60,000
50% share on debt = $30000
so basis on interest is here as
basis on interest = cash + adjusted basis - 50% share on debt
basis on interest = $10000 + $55000 - $30000
basis on interest = $35000