2042 will be the year the fund drys up, based on its current level.
Answer:
a. Equity alliance
Explanation:
Equity alliance -
It is the process , in which one of the company take the equity stake of the other company and vice versa , is referred to as equity alliance .
Due to this , the company becomes shareholder and stakeholder of each other .
The share acquired is the minor one , so that the company still have the power of decision making .
Hence , same case is shown in the question ,where the Moon Star Products Inc.buys the 40 % of the stock of Gold Logistics .
Answer:
false
Explanation:
Capital budgeting is the process taken to evaluate and determine the profitability of an investment. capital budgeting can be done for projects that have cash flows of more than one year
capital budgeting methods include :
Net present value
internal rate of return
accounting rate of return
payback period
To solve this problem, first, we must know the formula to get the current ratio.
Currents Assets
Current Ratio= -------------------------
Current Liabilities
So in this problem the current assets and current liabilities are given which are the following:
CA= $593,000,000
CL= $316,000,000
Let's now solve $593,000,000 / $316,000,000 = 1.88
Answer:
The alternative that should be chosen assuming identical replacement is:
Alternative B.
Explanation:
a) Data and Calculations:
Alternatives:
A B
First Cost $5,000 $9,200
Uniform Annual Benefit $1,750 $1,850
Useful life, in years 4 8
Rate of return 7% 7%
Annuity factor 3.387 5.971
Present value of annuity $5,927.25 $11,046.35
Net cash flow $927.25 $1,846.35
b) Alternative B yields a higher return than Alternative A. Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.
