Confused? What is the problem at hand?
Answer:
Creditor beneficiary
Explanation:
The first contract is between Claudia and Clifford, in which Clifford is the debtor to the creditor Claudia.
This means that Claudia holds a legal contractual right to receive a payment from Clifford.
Now there is a second contract between Claudia and Friendly Paving Co. this is basically the agreement to install driveway. For this Claudia has to pay to Friendly Paving Co.
For this if she transfers her right of receiving the payment from Clifford towards Friendly Paving co. then she announces Friendly Paving Co. to be a creditor beneficiary.
Answer:
NPV = $40,952.46
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-28,000
Cash flow in year 1 to 3 = $32,500 - $2,800 = $29,700
I =14%
NPV = $40,952.46
To find the NPV using a financial calacutor:
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
I hope my answer helps you
Answer:
Consider the following calculations
Explanation:
Step 1. Given information.
Asset Cost Adjusted Basis
--------------------------------------------------
Skidder 230,000 40,000
Driller 120,000 60,000
Platform 620,000 0
-------------------------------------------------
Total 970,000 100,000
Step 2. Formulas needed to solve the exercise.
Allocation for each asset = value sold * (adjusted basis / total)
Gain on sale = Sales price - Adjusted basis amount
Step 3. Calculation and Step 4. Solution.
Sales price is allocated on the basis of adjusted value.
- Skidder = 300.000 * 40.000/100.000 = 120.000
- Driller = 300.000*60.000/100.000 = 180.000
- Platform = 300.000*0/100.000 = 0
Gain on sale = Sales price - Adjusted basis amount
= 300.000 - (40.000 + 60.000 + 0)
= 200.000
