Answer:
No, because the planned sale to the private developer to increase the tourist trade qualifies as a public use.
Explanation:
Eminent domain is the provision that gives a government the ability to take a private property and convert it to public use. The owner of the property is however required to be compensated adequately.
In this instance the city filed eminent domain proceedings in order to obtain 40 beach houses as part of an elaborate plan to increase the city's tourist trade and revive the local economy.
Since this is for public gain the city has a legal right to file for an eminent domain here.
So the owners will most likely not prevail in this situation
Answer:
$34,310.45
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
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-200,000
Cash flow in year 1 - 5 = 65,000
I = 12%
NPV = $34,310.45
To find the NPV 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
Answer:
B. Investment Y has a higher present value.
Explanation:
The cash inflows are given in the question for Investment X and Investment Y
Plus we know that the cash inflows and the number of years has an indirect relation
That means if the cash flows are the same for year 1 and 2 and in year 3 and year 4 so year 1 and year 2 present value would be higher as compared with the last year present value
Since in the question Investment Y has higher cash inflows in starting year but in Investment X has higher cash inflows in last year that interprets Investment Y has a higher present value
Answer: C. II and III
Explanation:
Under the Security Act of 1933, new corporate bond issues of such high amounts are not exempt from the Act and so need to be registered with the Securities and Exchange Commission (SEC).
Also, as the amount exceeds $50,000,000, the issue is subject to the Trust Indenture Act of 1939 which states that the issuer should include certain protective provisions that are recommended by the SEC in order to protect bondholders. The adherence to these covenants will then be monitored by an independent trustee that is to be appointed by the Issuer.
