Answer:
cash flow used by financing activities (92,600)
Explanation:
<u>Financing activities:</u> loan taken and principal payment. It also includes stock transactions.
proceeds from issuance of common stock 151,300
purchase of treasury stock (47,300)
dividends payment (89,800)
redemption of bonds <u> (106,800) </u>
cash flow used by financing activities (92,600)
The land and building transaction represent investing activities. So we ignore them from the calculation.
Answer: $4,000
Explanation:
The house is worth $200,000 in the present when you bought it.
When you sell it in a year, it would have appreciated by 2% over the capital that you invested as per the expected increase in Real Estate rates.
Your capital gain therefore is that 2%;
= 2% * 200,000
= $4,000
A debt-free firm has a net income of $71,600, taxes of $31,500, and depreciation of $11,000 so the net cash flow is $78400
Depreciation refers to two aspects of the same concept: first, the actual decrease in the fair value of the asset, such as the decrease in the value of plant equipment each year as it is used. and depreciation, and secondly, the allocation on the statement of the historical cost of the asset over the useful life of the asset (allocation according to the principle of attachment).
Thus, depreciation is the decrease in value of an asset and the method used to reallocate or "depreciate" the cost of a tangible asset (such as equipment) over its useful life. its use. Companies depreciate long-lived assets for accounting and tax purposes.
learn more about depreciation here; brainly.com/question/25806993
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Answer: A. He will quite certainly gain approval since the project has a positive net present value.
Explanation:
The options are:
A. He will quite certainly gain approval since the project has a positive net present value.
B. Approval is probable but not likely as he failed to account for the time value of money.
C. He will not gain approval as he failed to consider whether the project is leading edge or not.
D. Approval is probable but not likely as the project has been constructed on estimates instead of facts.
Capital budgeting is used to know whether the long term investment for a particular organization's is actually worth investing in or not by the company.
Based on the scenario in the question, since the present value of the estimated future cash flows is greater than the cost of the project, Ashton will quite certainly gain approval since the project has a positive net present value.