Answer:
The correct solution is "$26,000".
Explanation:
The given values are:
Cost
= $1,750,000
Salvage value
= $150,000
First Year Extraction
= 6,500
Total Extraction
= 400,000
Now,
⇒ 
On putting the values, we get
⇒ = 
⇒ = 
⇒ = 
($)
Answer:
The vaule of technology in business is very important like the most important of the business because it help keeps tracks of things, save database, and it help the business grow.
Answer:
the second option
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
first option
Cash flow in year 1 and 2 - $85,000
1 = 7
PV = $153,681.54
Second option
Cash flow in year 0 = $20,000
Cash flow in year 1 and 2- $74,000
I = 7
PV = $153,793.34
the pv of the second payment is higher than the first so the seconf would be choosen
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
153,681.54
Answer:
Small individual investors will benefit the most.
Explanation:
From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.
Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.
From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.
