Answer:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.
Explanation:
Proper year zero cash flow to use in evaluating this project = After-tax value of the land + Cost of manufacturing new plant + Grading Expenses
= $10,100,000 + $21,300,000 + $880,000
= $32,280,000
Therefore, The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project will be $32,280,000.
NOTE
:
- The after-tax value of the land of $10,100,000 should be considered since it is an opportunity cost of capital if the land is used rather than sold.
- The cash outlay of $21,300,000 for the plant cost and the $880,000 for the grading costs are the part of the initial investment in year 0.
Answer:
The amount to be deposited today is: $211, 562.44
Explanation:
Compound interest is interest that is reinvested to the initial amount that was loaned or deposited in a bank account. This means that the next interest will be calculated using the principal amount (initial amount deposited) plus the interest that is reinvested in the current period. Compound interest is calculated as follows:
FV = PV/ ((1 + (i/n))^(nT)
FV = Future value
PV = Present Value
i = interest rate
n = number of times interest rate is applied per period
T = number of periods
In this question, PV is required to determine how much money we need to deposit today. Therefore, PV is made the subject of the formula as follows:
PV = FV/((1 + (i/n))^(nT)
PV = $255,000/ (1+(0.011/4))^(4*17)
= $255000/(1.00275)^68
=$211,562.4443
Answer:
Technology, and williness to work at home. Many laptops have become viable options to complete your work. An increase in better internet and wi-fi also helps with keeping people on task. Many people as well have found it better to work from home, and studies show that productivity have risen
Explanation:
Answer:
The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.
Explanation:
A Contingent liability is recorded when the chances are probable and the amount can be reasonably estimated.
As in the given case it is not probable that the company will lose the case, no Contingent liability to be recorded.
Therefore, The Contingent liability to be recorded for this lawsuit on the current balance sheet is $0.
Answer: $1 million
Explanation:
From the question, we are informed that a country has been in existence for only two years and that in the first year, receipts were $1.0 million and outlays were $1.5 million. Since outlays us more than revenue, it shows that there's a debt of ($1.5m - $1.0m) = $0.5 million.
In the second year, receipts were $1.5 million and outlays were $2.0 million. This also shows that there is a debt of $0.5 million.
At the end of the second year, the government had issued debt worth:
= $0.5 million + $0.5 million
= $1 million
