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AlexFokin [52]
3 years ago
5

A 4-year project has an annual operating cash flow of $51,000. At the beginning of the project, $4,200 in net working capital wa

s required, which will be recovered at the end of the project. The firm also spent $22,300 on equipment to start the project. This equipment will have a book value of $4,620 at the end of the project, but can be sold for $5,640. The tax rate is 40 percent. What is the Year 4 cash flow
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer: $60,432‬

Explanation:

The equipment can be sold for $5,640 yet the book value is $4,620. The gain is therefore;

= 5,640 - 4,620

= $1,020

After tax cashflow from sale

= Sales price - tax on gain

= 5,640 - (1,020 * 40%)

= $5,232

Cash-flow in 4th year = Annual Cash flow + after-tax cash-flow from sales + net working capital recovered

= 51,000 + 5,232 + 4,200

= $60,432‬

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The unemployment due to changes in the types of skills employers require is called
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Answer: "structural unemployment".
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3 years ago
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Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a
Nikolay [14]

Complete question:

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

a. 150,000

b. 250,000

c. 0

d. 120,000

e. 170,000

Answer:

150,000 of goodwill should be attributed to the non-controlling interest at the date of acquisition

Solution:

A non-controlling interest (NCI) is a role in which a owner holds less than 50% of remaining and has little control over decisions. A minority ownership is often known as the minority interest. Non-controlling interests are calculated by their net worth and are not eligible for future right to vote.

Now , Calculate the amount

Cost(PP) - 1,600/0.8 = 2,000

FV - 1,850

GW = 1,850 - 2,000

     = 150,000

8 0
3 years ago
As a birthday gift, you are mailing a new personal digital assistant (PDA) to your cousin in Toledo. The PDA cost $250. There is
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Answer:

Yes, it is worth $4 to insure a Personal Digital Assistant

Explanation:

Eery action has its benefits and disadvantage. The benefits of sending your cousins a Personal Digital Assistant mail is of great benefit to him. Therefore, if the chances of losing it to damage or lost is two percent, whereas with four percent, the damage or lost is covered and insured. Then the later becomes inevitable.

Evaluating it further it is better to lose additional charges for a set purpose, than to lose its capita l values .

3 0
3 years ago
When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application o
Dima020 [189]

Answer: collaborative filtering

Explanation:

Collaborative filtering is a technique thta helps to filter out the things that a user can like base on how other identical users react. Here, a small sample of the people with similar taste will be chosen from a larger group.

When you view a selection at Amazon and see "Customers who bought this (item) also bought ...," you are seeing the application of collaborative filtering.

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3 years ago
Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00
stich3 [128]

Answer:

a. $12.40

Explanation:

EBIT stands for earnings before interest and taxes; therefore, interest and taxes rates should not be considered. The EBIT is determined as the amount from sales deducted by operating costs and depreciation. The EBIT is:

EBIT = \$28.00-\$12.60-\$3.00\\EBIT=\$12.40

The answer is alternative a. $12.40.

6 0
3 years ago
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