1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maru [420]
3 years ago
8

NDS Industries is evaluating a project with an initial investment at Time 0 of $640,000. The present value of the levered cash f

lows is $729,400 and the net present value of the project is $157,000. Using the flow-to-equity method of valuation determine the amount borrowed.
Business
1 answer:
RoseWind [281]3 years ago
3 0

Answer: $67600

Explanation:

Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:

NPV = $157000

Add : Initial investment = $640000

Present value of cash inflow = $797000

Less : Present value of Levered cash flow = $729400

Amount borrowed = $67600

Therefore, the amount borrowed is $67600.

You might be interested in
The government accounting office (gao) announces deep cuts to social security, medicare, and welfare programs. aggregate demand
Alborosie
Aggregate demand will REMAIN THE SAME. Aggregate demand refers to the total demand for goods and services within a particular market in an economy. Social security, medicare and welfare programs are examples of government transfer payments; transfer payments are not meant to be purchased, therefore they have no influence whatsoever on aggregate demand. 
4 0
3 years ago
Read 2 more answers
Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $816,0
irina [24]

Answer:

Effects on Accounting Equation: Assets = Liabilities + Equity

April 30 - Assets (Cash at bank) are increased and Liabilities (Notes Payable) are increased with $814,000.

June 30 - Assets (Inventory) are increased and Liabilities (Accounts Payable) are increased with $93,000.

July 15 - Assets (Cash) are decreased and Liabilities (Accounts Payable) are decreased with $93,000.

August 31 - Assets (Cash) are increased and Liabilities (Deferred Revenue) are increased by $33,000 for security service received in advance.

Dec 31 - Liabilities (Wages Unpaid) are increased and Equity (Retained Earnings) is decreased by $58,000 for unpaid wages.

Dec 31 - Liabilities (Interests Accrued) are increased and Equity (Retained Earnings) is decreased by $32,640 for accrued interests for 8 months.

Dec 31 - Liabilities (Deferred Revenue) are reduced and Equity (Retained Earnings) is increased by $22,000 for 4/6 months security service revenue received in advance and now adjusted based on the accruals concept.

Explanation:

Effect on Debt-to-Assets Ratio:

a) no change as assets and liabilities are increased by the same amount.

b) no change as assets and liabilities are increased by the same amount.

c) no change as assets and liabilities are decreased by the same amount.

d) no change as assets and liabilities are increased by the same amount.

e) debt-to-asset ratio is increased with unpaid wages.

f) debt-to-asset ratio is increased with accrued interests at 6% of $816,000 x 8/12 = $32,640.  The note was collected on April 30 with 8 months to year-end.

g) debt-to-asset ratio is decreased with the adjustment of security service received for 4 months out of 6 months based on the accruals concept.

4 0
3 years ago
Martin, a senior manager in a company, bribes a government officer to secure a government contract.
Likurg_2 [28]

Answer:

a. rationalization

Explanation:

He justifies his actions stating that he acted in the best interests of the company and nobody stopped him. In the given scenario, Martin is justifying his actions by resorting to rationalization. As we can see that Martin in this scenario is trying to justify his actions which means that he is making excuses to defend himself which is non professional as to avoid the truth from the company.

3 0
3 years ago
The marginal cost faced by the producer of a movie includes the cost of ________.
iragen [17]

The marginal cost faced by the producer of a movie includes the cost of Hiring the crew for the additional day.

<h3>What is marginal cost?</h3>

Marginal cost  can be described as the increase or decrease in the cost when carrying out the  production of one more unit or serving one more customer.

This can be regarded as the   incremental cost, it should be noted that the marginal cost faced by the producer of a movie includes the cost of Hiring the crew for the additional day.

Learn more on marginal cost at:

brainly.com/question/3200587

#SPJ1

3 0
2 years ago
Rainey Enterprises loaned $45,000 to Small Co. on June 1, Year 1, for one year at 6 percent interest. Required a. Record these g
Sedaia [141]

Answer:

Journal entries

Explanation:

The journal entries are as follows

On June 1

Note receivable $45,000

    To Cash $45,000

(Being the issuance of note receivable is recorded)

On December 31

Interest receivable A/c Dr $1,575

                 To Interest revenue A/c $1,575

(Being accrued interest is recorded)

The computation of accrued interest is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $45,000 × 6% × (7 months ÷ 12 months)

= $1,575

The 7 months is calculated from June 1 to December 31

On June 1

Interest receivable A/c Dr $1,125

                 To Interest revenue A/c $1,125

(Being accrued interest is recorded)

The computation of accrued interest is shown below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)  

= $45,000 × 6% × (5 months ÷ 12 months)

= $1,125

The 5 months is calculated from January 1 to May 31

On June 1

Cash A/c Dr $47,700

          To Note receivable $45,000

          To Interest receivable $2,700

(Being the maturity of note receivable is recorded)

3 0
3 years ago
Other questions:
  • While other suppliers bidding for the contract brought bids with lower per unit costs, Orchard wanted to take delivery based on
    8·2 answers
  • Guatemala is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Guatemalan
    7·1 answer
  • Managers organize information about a given job by performing a job analysis to determine the following with regard to that job:
    12·1 answer
  • Crane Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During
    14·1 answer
  • A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expecte
    8·1 answer
  • An advantage of a corporation is that
    12·1 answer
  • A company reported the following financial information: Taxable income for current year $120,000 Deferred income tax liability,
    8·1 answer
  • Tony borrows $1400 at an annual interest rate of 6.0%. He receives the loan on the first day of the current month and will make
    12·1 answer
  • Help <br> Need for a test
    6·1 answer
  • Poppy most likely qualified for a zero interest auto loan because:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!