Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.
Answer:
Please find attached detailed solution to the above question.
Explanation:
Please as attached detailed solution.
Answer:
a. an invitation to submit offers, not an offer itself.
Explanation:
When a property is to be sold at an auction it involves an invitation for interested buyers to submit offers to the seller. The seller will now consider the offers and see the best one for him.
There is usually no price stated for the auction and seller goes for the highest bid.
If however if the seller says that there is no reserve price or that the reserve price was met, it can now be considered an offer in itself.
In this case Owen is offering the property at a live auction and does not state requirements for a reserve price
Answer:
Explanation:
The stockholder's equity statement is composed of common stock and retained earnings. The ending balance shown in the attached spreadsheet, after modification.
The Ending balance of earnings retained = Starting balance of earnings retained + net income - dividend paid
And, Ending balance of common stock = Starting balance of common stock + issued stock
The preparation of the stockholders ' equity statement for the year ended December 31, 20Y7 is provided in the spreadsheet. The attachment below is:
Answer:
this is easy just follow the steps and youl be done in no time
Explanation:
