Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from ins
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Answer:
Explanation:
Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value
Cash Investment at F0: <em>230,000/2 = 115,000</em>
present value of 7,500 salvage value:
Maturity 7,500.00
time 7 years
MARR: 10% = 0.1
PV <em> 3,848.69 </em>
<u>Then, we need to calculate the present value of the loan discounted at 10%</u>
half the investment is finance: 230,000 / 2 = <em>115,000</em>
Then, this capitalize 2 year at 8% before the first payment:
Principal 115,000.00
time 2 year
MARR: 10% = 0.08000
Amount 134,136.00
Now we need to discount this loan at 10% which is our rate of return:
Maturity 134,136.00
time 2.00
MARR: 10% = 0.1
PV <em>110,856.20 </em>
Finally: we add this values to get the resent worth:
<em>115,000 + 110,856.20 - 3,848.69 = </em><em>222,007.51</em>
<em />
Last step, we calculate the PMT of the present worth:
PV 222,007.51
time 7 years
MARR: 10% = 0.1
C $ 45,601.564
<em />
Answer:
I could not find the exact details related to this question so here is a similar question to guide you.
Goodwill = Acquisition Price - Net book value (Investee)
= 75,000 - ( Assets - Liabilities)
= 75,000 - ( 90,000 - 40,000)
= $25,000
Identifiable noncurrent assets is overstated by $10,000 however. This will have to be adjusted for tax and then removed from Goodwill to find the Net goodwill that should be reported in the investor's consolidated balance sheet prepared immediately after this business combination.
= 10,000 ( 1 - 40%)
= $6,000
Net Goodwill = 25,000 - 6,000
<h2>= $19,000</h2>