Answer:
The correct net present value of the machine would be $86,400
Explanation:
For computing the net present value, the discount factor, yearly cash inflows are required.
In the question, it is already mentioned that Carlin ignores income taxes, and for depreciation, income tax is to be considered. So, automatically the depreciation is also not be considered in calculating part which means that the net present value would remain the same.
Answer:
D) $27, 200
Explanation:
Cash in the checking account and petty cash are considered cash directly. Cash equivalents are securities that can be converted into cash within a 90 day period.
cash and cash equivalents are = checking account + petty cash + commercial paper = $20,000 + $200 + $7,000 = $27,200
Answer: $3.38
Explanation:
Dividend Yield of a stock refers to the dividend paid by the company expressed in terms of a percentage of the current value of the company's stock.
The Dividend therefore is;
= 75 * 4.5%
= $3.375
= $3.38
Answer:
B) the sale of goods to a customer.
Explanation:
When goods are sold to a customer, the cost of goods sold account is debited by the same value that the finished goods inventory is credited.
For example, suppose a company sells $1,000 worth of goods to a customer, and the sales price is $1,200. The customer pays by cash the full value of the goods. The journal entry would be:
Account Debit Credit
Cash $1,200
Sales Revenue $1,200
Cost of Goods Sold $1,000
Finished Goods Inventory $1,000
Answer:
<u> C. The firm likes its workers and doesn’t want to replace some jobs with machinery.</u>
Explanation:
Optimal level of capital simply refers to an ideal strategy used by a firm to raise capital. For example, a firm may decide between debt financing or equity financing, depending on the company's desired level of capital.
So, an already operational firm with that likes its workers and doesn’t want to replace some jobs with machinery has no direct relationship with its level of capital.
