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Gnom [1K]
3 years ago
15

When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected ho

lding period. This price is referred to as the property's
Business
1 answer:
EastWind [94]3 years ago
5 0

Complete Question:

When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected holding period. This price (assuming selling expenses have yet to be accounted for) is referred to as the property's:

Group of answer choices

A. net sale proceeds

B. selling expenses

C. terminal value

D. current market value

Answer:

C. Terminal value.

Explanation:

When using discounted cash flow analysis for valuation, the appraiser must estimate the sale price at the end of the expected holding period. This price (assuming selling expenses have yet to be accounted for) is referred to as the property's terminal value.

Terminal value can be defined as the discounted value of all cash flows for a property after its forecast period or investment time in discounted cash flow analysis.

<em>This ultimately implies that, the property's terminal value is primarily used for the estimation or determination of its value based on future cash inflow. </em>

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Explanation:

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3 years ago
because research is blank______, it is important to figure out beforehand exactly what problem needs to be solved.
KonstantinChe [14]

Expensive and time consuming, it is important to figure out beforehand exactly what problem needs to be solved.

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7 0
2 years ago
PackMan Corporation has semiannual bonds outstanding with nine years to maturity and are currently priced at $754.08. If the bon
Ann [662]

Answer:

b. 8.225%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $754.08

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 7.25% ÷ 2 = $36.25

NPER = 9 years × 2 = 18 years

The formula is shown below:  

= Rate(NPER,PMT,-PV,FV,type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 11.75%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 11.75% × ( 1 - 0.30)

= 8.225%

8 0
3 years ago
Division A offers its product to outside markets for $30. It incurs variable costs of $11 per unit and fixed costs of $75,000 pe
olga55 [171]

Answer:

a. See part a below for the analysis.

b. We have:

1. Division A total cost = $1,131,000

2. Division A total profit or benefit = $1,509,000

3. Division B total cost = $1,320,000

4. Division A total profit or benefit = $44,000

Explanation:

Note: See the attached excel file for the calculation of calculation of costs and benefits of options available to Divisions A and B.

a. What are the costs and benefits of the alternatives available to Division A and Division B with respect to the transfer of Division A's product? Assume that Division A can market all that it can produce.

Under this condition, each analysis is based on the condition that either Division A or Division B will pay for the transportation cost.

From part a the attached excel file, we have:

1. Division A will incur a total cost of of $559,000 and gets a profit or benefit of $761,000 if it sells to the outside market.

2. Division A will incur a total cost of of $647,000 and gets a profit or benefit of $673,000 if it sells to Division B.

3. Division B will incur a total cost of $1,408,000 if it buys from Division A.

4. Division B will incur a total cost of $1,364,000 if it buys alternate supplier. It thereby saves the transportation cost of $88,000 of buying from A as a benefit.

b. How would your answer change if Division A had idle capacity sufficient to cover all of Division B's needs?

Under this condition, it is assumed that Division A will pay for the transportation cost. Therefore, Division A will sell to both the outside market and Division B.

From part b of the attached excel file, we will have the following based on this condition:

1. Division A total cost = Total cost of selling to the outside market + Total cost of selling to Division B = $559,000 + $572,000 = $1,131,000

2. Division A profit or benefit cost = Total profit or benefits of selling to the outside market + Total profit or benefits of selling to Division B = $761,000 + $748,000 = $1,509,000

3.  Division B will incur a total cost of $1,320,000 by buying from Division A. It thereby saves $44,000 (i.e. $1,364,000 - $1,320,000 = $44,000) as a benefit for not buying from alternate supplier.

Download xlsx
3 0
3 years ago
Hitachi, Ltd., reports total revenues of ¥9,616,202 million for its current fiscal year, and its current fiscal year-end unadjus
BartSMP [9]

Answer:

a.

Debit Bad debts expense:¥28,464,808,000

Credit Allowance for doubtful account:¥28,464,808,000

b.

Debit Bad debts expense: ¥45,958,700,000

Credit Allowance for doubtful account: ¥45,958,700,000

Explanation:

a. The amount of bad debts expense assuming uncollectibles:

0.4%x¥9,616,202,000,000=¥38,464,808,000

Unadjusted trial balance reports a credit balance of ¥10,000 million for the allowance for doubtful accounts, Hitachi must recording the difference amount: ¥38,464,808,000-¥10,000,000,000=¥28,464,808,000

b.The amount of bad debts expense assuming uncollectibles:

2.0%x¥2,797,935,000,000=¥55,958,700,000

Unadjusted trial balance reports a credit balance of ¥10,000 million for the allowance for doubtful accounts, Hitachi must recording the difference amount: ¥55,958,700,000-¥10,000,000,000=¥45,958,700,000

6 0
3 years ago
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