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Mrac [35]
3 years ago
14

You own a business which generates $200,000 in profit per year. Someone has offered to buy it from you. Based on a 5 year projec

tion and a belief that you could earn 9% annually if you had the money today, how much do you believe the business is worth today?
Business
1 answer:
cluponka [151]3 years ago
6 0

Answer:

The Present worth is $777930.25

Explanation:

FInd the NPV of the cashflows

NPV = 200000/(1+0.09)^1 + 200000/(1+0.09)^2 + 200000/(1+0.09)^3 + 200000/(1+0.09)^4 + 200000/(1+0.09)^5

= $777930.25

Therefore, The Present worth is $777930.25

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a simplified alternative to capitalization of net income that does not take into account bad debts or expenses is called?
mestny [16]

<u>Answer:</u>

The correct answer for this is: Gross Rent Multiplier.

<u>Explanation:</u>

The type of a simplified alternative to capitalization of net income that does not take into account bad debts or expenses is called Gross Rent Multiplier (GMR).

Gross Rent Multiplier is used to find the approximate net incomes that does not include any bad debts or expenses.

Also, it is considered as the quickest tool to estimate the values, such as of a building.

6 0
3 years ago
Supplies are an example of a(n)
maxonik [38]

Answer:

Supply is an example of a none of the above

Explanation:

fixed cost, opportunity cost, and variable cost are not examples of supply

7 0
3 years ago
primary authoritative body for determining the measurement focus and basis of accounting standards for governmental fund operati
wlad13 [49]

Answer: Governmental accounting standards board (GASB)

Explanation: GASB is a non governmental organization that helps to develop generally accepted accounting principles for Government (Federal, states and Local).

It was established in the year 1984, it operates an independent, transparent and participatory system with all stakeholders adequately involved in the discharge of its responsibilities. GASB is funded through the accounting supports that it renders to both the brokers and dealers who buy and sell municipal bonds. This supports attracts a certain amount of money which is utilized to run its operations.

5 0
4 years ago
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs t
Masteriza [31]

Answer:

55,000 Credit balance

Explanation:

Mango Company

Predetermined overhead rate /Estimated overhead cost

= $600,000 / $300,000

Estimated direct labor cost = 200%

Applied overhead :

=Actual direct labor cost of $335,000 × 200%

= $670,000

Overhead incurred-Overhead applied

$615000 – $670,000

=$55,000

Therefore At year-end, the balance in the Factory Overhead account is a: credit of $55,000

8 0
3 years ago
Read 2 more answers
Which of the following is a common way to describe a product that is being offered for sale? (Select the best answer.)
hammer [34]

Answer:

On the market

Explanation:

On the market is the phrase that refers to items that have been offered to the market for sale. When an item has been labeled 'on the market,' it means the item is available for sale. Buyers are invited or welcomed to buy.

In the market is when a buyer is shopping for an item to buy. In the market for a car mean they are looking for a car to buy.

5 0
3 years ago
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