Answer:
What Jason Jennings and Mary Scott did with there firm is called merger.
Explanation:
Merger is when two existing independent business entities come together to become one entity. Some of the possible reasons Jason Jennings and Mary Scott decided to merge are:
To enjoy the economy of large scale production
The take advantage of synergy associated with merger
To reduce fixed cost
To make their business more competitive e.t.c.
Answer:
$11000
Explanation:
Depreciation is the reduction in the value of an asset over time due to regular wear and tear. Straight - line depreciation is where the same amount is reduced every year over the life of the asset. It is calculated as (Cost of asset - residual value) / number of useful life years
= ($60000 - $5000) / 5 = $11000
Answer:
8%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
The IRR can be calculated using a financial calculator.
Cash flow in year zero = $-165,000
Cash flow each year from year one to seven = $31,692
IRR = 8%
To find the IRR 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 IRR button and then press the compute button.
I hope my answer helps you
There is no data shown, so we can not figure the 1 year cash flow
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