Answer:
The appropriate answer is "$9,300".
Explanation:
The given values are:
FMV,
= $31,000
Adjusted basis,
= $15,500
Encumbered mortgage,
= $9,300
Now,
The Gerald's outside basis will be:
= 
On substituting the given values, we get
= 
= 
= 
= 
($)
Answer:
1,875,000 Economic Value Added
Explanation:
Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added
This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.
3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes
18,000,000 x 5% = (900,000) Required Return
1,875,000 Economic Value Added
Answer:
B. If the building could be sold, then the after-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.
Explanation:
The proceeds from a potential sale are the opportunity cost of using the building for a given project instead of selling to a third party. Not including any cost will lead to project not recovering the entire capital used in it.
Is important to notice this is the after-tax proceeds from the sale of the building.
Answer:
The required cycle time for this assembly line is 2 minutes. The rigtht answer is c.
Explanation:
Acording to the data, we have the following:
Daily operating time= factory operates 1000 minutes per day
Scheduled output=make 500 El-More dolls per day
Therefore, to calculate the required cycle time for this assembly line we have to use the following formula:
Cycle time = daily operating time divided by the scheduled output
= 1000 / 500 = 2 minutes
The required cycle time for this assembly line is 2 minutes.
According to the "Discounted Payback Period Rule," a business will approve a project if the calculated payback is shorter than a predetermined period of years.
Definition of Period of Repayment
The number of years required to recover the initial financial investment is referred to as "payback time." In other words, it measures how long a machine, facility, or other investment has produced enough net income to cover its costs.
<h3>
What are NPV and payback period?</h3>
While NPV (Net Present Value) is calculated in terms of money, payback technique refers to the length of time required for a return on investment to equal the initial investment. Payback, NPV, and countless more metrics are examples of approaches to measure the worth of a project.
To learn more about Payback period visit:
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