I am pretty sure it's to decide if the applicant is creditworthy. ( Makes most sense. Did research too.) :)
Answer:
$170,000.00
Explanation:
The amount of $170,000.00 will still be recorded as the value of the building, before considering accumulated depreciation.
<em>Fair value</em> of $1,000,000.00 or <em>selling price</em> of $900,000.00 does not affect the original value of the building in the company's balance sheet.
Answer:
a concept that explains how a customer’s choices affect which products a business should continue to supply in the market
Explanation:
In simple words, Dollar voting relates to the example used only to relate to the effect of consumer demand on the behavior of suppliers via the stream of consumer purchases for their commodities to the suppliers.
In the potential, goods which people purchase will continue to be made. Throughout the future, product lines which are not selling as well as anticipated will probably have fewer productive assets. Efficiently, customers vote for "finalists" as well as "whiners" with their transactions as per this metaphor.
Answer:
Realized gain is $297,144
Recognized gain is $47,144
Adjusted basis for new residence is $175,000
Explanation:
•Ted's Realized gain:
Sales price $368,000 - basis $48,776 - expenses $22,080 = $297,144.
• Ted's Recognized gain:
Realized gain $297,144 - exclusion upto $250,000 = $47,144.
• Ted's basis of the new residence is its cost of $175,000.
Answer:
The projects net present value = −$1,104,607
Explanation:
The net present value is the sum of the present values of all expected cash-flows from t=0 to t=n
The equal cash-flows of $500,000 expected at the end of each year from year 1 to year 5 are an annuity whose present value is calculated as follows:
PV of An Ordinary Annuity= ![\frac{PMT[1-(1+i)^{-n} ] }{i}](https://tex.z-dn.net/?f=%5Cfrac%7BPMT%5B1-%281%2Bi%29%5E%7B-n%7D%20%5D%20%7D%7Bi%7D)
where PMT is the the equal payment cash inflow received at the end of each period
i is the project's cost of capital and
n is the number of periods making the annuity
Therefore: Net Present value of this investment given a 10% project cost of capital is calculated as follows:
NPV=![-$3million + \frac{($500,000*[1-(1+0.1)^{-5} ]) }{0.1}](https://tex.z-dn.net/?f=-%243million%20%2B%20%5Cfrac%7B%28%24500%2C000%2A%5B1-%281%2B0.1%29%5E%7B-5%7D%20%5D%29%20%7D%7B0.1%7D)
=-$1,104,606
