Answer:
$298,206
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $1,500,000
All yearly cash flows would be
= Annual net operating cash inflows × PVIFA for 20 years at 17%
= $319,522 × 5.6278
= $1,798,206
Refer to the PVIFA table
Now put these values to the above formula
So, the value would equal to
= $1,798,206 - $1,500,000
= $298,206
Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the <u>Domestic</u> model
Explanation:
In Domestic Model the products and services of the company are customized as per the requirement of the domestic environment, Thus the customers may prefer domestic companies over other foreign companies.
For example : The American theme parks.The company customized the rides, attractions, and food offerings based on the location (like in Florida ,Europe they all have different themes)of the theme park.Thus giving the the park a local reception from the public.
Hence we can say that Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the <u>Domestic</u> model
Answer: Assets are listed in descending order of liquidity
Explanation:
According to accountant principles, the assets are always listed starting with the most liquid asset. It has the special purpose of helping to the shareholders and company owners to know what assets are easily sold and become in cash flow. The most liquid asset is always the cash, it is the first in the list. Commonly the second asset listed is the inventory, then we have ththe realizable value ( it includes bonds, stocks and other stock market elements), followed by the elements available for sell, at the end we can find listed long term resources including fixed assets and intangible assets.
Answer:
1. T
2. T
3. F
4. T
5. T
Explanation:
Cost of equipment usually contains the cost in acquiring the equipment and the cost accumulated in putting the equipment into work( such include installation and an repairs done during that).
Sale tax is a part of acquisition cost.
item are usually capitalized when it is recorded as an asset, instead of an expense. What this shows is that expenditure would be in the balance sheet, instead on the income statement.