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Softa [21]
3 years ago
13

Sam Weller is thinking of investing $70,000 to start a bookstore. Sam plans to withdraw $15,000 from the business at the end of

each year for the next five years. At the end of the fifth year, Sam plans to sell the business for $110,000 cash. At a 12% discount rate, what is the net present value of the investment?A. $54,075B. $62,370C. $46,445D. $70,000
Business
1 answer:
Norma-Jean [14]3 years ago
8 0

Answer:

C. $46,445

Explanation:

The net present value is the value of the after tax cash flows when the amount invested is substracted from it.

Using the financial calculator to find the NPV:

Cash flow for year zero =$ -70,000

Cash flow for each year from year 1 - 4= $15,000

Cash flow for year 5 = $125,000

I = 12 %

NPV = $46,445

I hope my answer helps you.

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A buyer of a manufactured good not only obtains the good itself, amenity, or awareness, but also receives good after-sales services that aid in handling and increasing products efficiently. Providing this kind of services are important to the capability of the business to uphold fruitful relations as well as marketing mixes by creating continuous growth in products and over market research. Providing excellence after-sale deal encourages the goodwill of the business. This competence lets customers not to use money for maintenances for 1 or 2 years of warranty period.

8 0
3 years ago
Read 2 more answers
Glavine Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of it
almond37 [142]

Answer:

                                                                                        $

Market value of common stocks   (6,000 x $25)  = 150,000

Market value of preferred stocks (9,000 x   $20) = 180,000

Market value of the company                                    330,000

Proceeds allocated to common stocks

= $150,000/$330,000 x $312,000

= $141,818

The correct answer is B

Explanation:

The market value of the company is the aggregate of market value of common stocks and market value of preferred stocks.The market value of each stock is equal to number of each stock outstanding multiplied by market price per share. Thus, the proceeds allocated to common stock equals the market value of equity divided by market value of the company multiplied by the lump sum.

4 0
3 years ago
On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $672,000 conside
bogdanovich [222]

Answer:

Question a:

The non-controlling interest of Rockne´s 2018 net income is $111,000.- calculated by taking 30% of Rockne´s net income of $370,000.-  

Question B:

There are 3 entries required to eliminate te sale of goods form rochne to doone.  

The first entry eliminates the sales recorded by rockne against te inventory or cost of goods sold by recorded by doone.  To consider, the 60% of the purchases went trhough cost of good sol d and 40% of the purchases remain in inventory until the following year.  Here is the engru:

Debit/sales/$530

Credit/COGS/ ($318) 60%

Credit inventory ($212) 40%

The next entry has to do with the amount of inventory that remained from the last intercompany transaction.  This is caclulated usin 40% of 2017 sales, which were $430.   So:

Debit inventory $172

Credit Cogs  ($172)

The last part is to eliminate the recievable on the book of rockne when they made te sale

Debit Payable $530

Credit receivable ($530)

6 0
3 years ago
Wade made a fairly serious error at work, causing his work group to miss an important deadline. Wade was personally called into
Nookie1986 [14]

Answer: <em>Individualistic culture </em>

Explanation:

Individualistic culture is referred to as the society that is mostly typified by the factors of individualism, that is computation or the prominence of the individual over an entire organization or group. The individualistic cultures are most often adjusted around oneself, being the independent body rather than identifying oneself with the group mentality.

8 0
3 years ago
Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's
Rom4ik [11]

Answer: $87780

Explanation:

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Less Cost:

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Total cost = $207240

Financial Advantage = $295020 - $207240

= $87780

3 0
3 years ago
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