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Fofino [41]
3 years ago
15

Giancarlo has received an inheritance from his rich uncle and is contemplating the purchase of a Suzuki XL7. In an attempt to ma

ke a rational decision, Giancarlo has identified the following cash flow estimates: Negotiated price of new Suzuki XL 7 $24,675 Taxes and fees on a new car purchase $1,732 Proceeds from the trade-in of old car $9,285 Estimated value of the Suzuki XL7 in 5 years $7,285 Estimated value of old car in 5 years $3,572 Estimated annual repair cost on Suzuki XL7 $350 Estimated annual repair cost on old car $925 What would be Giancarlo’s initial investment in the Suzuki XL7?
Business
1 answer:
Effectus [21]3 years ago
8 0

Answer:

Giancarlo’s initial investment in the Suzuki XL7 is $17,122

Explanation:

The computation of the initial investment is shown below:

= Negotiated price of new Suzuki + Taxes and fees charges on purchase of a new car -  proceeds from the old car

= $24,675 + $1,732 - $9,285

= $17,122

The estimated value of the old, new car and the annual repair cost is not relevant for computing the initial investment. Hence, we ignore it and not considered this cost.

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Healthy Foods has a book value per share of $32.68, earnings per share of $3.09, and a price-earnings ratio of 16.8. What is the
hammer [34]

The market-to-book ratio is 1.59%

<h3>How does market to book ratio work?</h3>

A financial valuation statistic called the Market to Book Ratio, commonly known as the Price to Book Ratio, is used to assess how a company's current market value compares to its book value. The current stock price of all outstanding shares represents the market value (i.e. the price that the market believes the company is worth).

<h3>How do you interpret a high market to book ratio?</h3>

A high book-to-market ratio could indicate that the stock of the company is being valued by the market below its book value. The price-to-book ratio, which is only the opposite of the book-to-market ratio formula, is well-known to investors.

learn more about market-to-book ratio here <u>brainly.com/question/14616549</u>

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8 0
2 years ago
When a company records depreciation it debits:_____.
Svetlanka [38]

Answer: A. Depreciation Expense and credits a contra-asset account.

Explanation:

Depreciation is an expense which means that when it is incurred, it will be debited because expenses are debited to show that they have increased.

Depreciation reduces the value of an asset so the asset needs to be credited which is what is done when an asset reduces. The full entry would therefore involved a debit to the Depreciation account and a credit to the asset account that is being depreciated.

4 0
3 years ago
The goal in marketing is to ____.
vaieri [72.5K]
The answer you are looking for is C. meet the needs and wants of the customer.
6 0
4 years ago
Litigation, arbitration and mediation are
GalinKa [24]

Answer:

all binding forms of dispute resolution

Explanation:

Resolution of disputes has 2 types of processes.

<u><em>Adjudicative processes</em></u>, such as litigation or arbitration, in which a judge, jury or arbitrator determines the outcome.

<u><em>Consensual processes, </em></u>such as collaborative law, mediation, conciliation, or negotiation, in which the parties attempt to reach agreement.

In both of the above processes the parties most bind to the final decision conceived.

7 0
3 years ago
Which assertion relates to the following statement? "Assets, liabilities, and equity interests are included in the financial sta
KengaRu [80]

Answer: Valuation

Explanation:

The assertion that assertion relates to the statement that Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts is the valuation assertion.

According to the assertion of accuracy and valuation, it simply means that all the figures that are presented in a financial statement are known to be accurate and are based on proper valuation of the assets, the liabilities and the equity balances

3 0
2 years ago
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