Using the straight line method
Depreciation per year
295,000÷5=59,000
Accumulated depreciation for 3 years
59,000×3=177,000
Book value of the equipment
295,000−177,000
=118,000
English:
Small businesses usually deal with known and established products and services, while entrepreneurial ventures focus on new, innovative offerings. Because of this, small business owners tend to deal with known risks and entrepreneurs face unknown risks.
Español:
Las pequeñas empresas generalmente se ocupan de productos y servicios conocidos y establecidos, mientras que las empresas empresariales se centran en ofertas nuevas e innovadoras. Debido a esto, los propietarios de pequeñas empresas tienden a lidiar con riesgos conocidos y los empresarios enfrentan riesgos desconocidos.
Answer:
present value = $12811.98
present value = $11428.17
present value = $9964.92
Explanation:
given data
injury settlement = $14,000
time = 3 year
opportunity cost = 3%
opportunity cost = 7%
opportunity cost = 12%
solution
we will apply here Present value formula that is
present value = 
..............................1
put here value of opportunity cost rate we get
present value = 
present value = $12811.98
and
present value = 
present value = $11428.17
and
present value = 
present value = $9964.92
Answer:
Explanation:
a. The synergy will be the present value of the incremental cash flows of the proposed purchase.
Since the cash flows are perpetual, this amount is $370,000/.08
=$370000/.08
=$4,625,000
b
The value of Flash-in-the-Pan to Fly-by-Night is the synergy plus the current market value of Flash-in-the-Pan
= $4625000+9000000
=$13625000
c
stocked acquired = percentage age of ownership x value of merged firm
0.35 (13625000 + 23000000)
= $12818750
d
NPVs = Value of Flash-in-the-Pan to Fly-by-Night – (equivalent) cash offer =synergy – cost:
NPV of cash alternative = 13625000 – 13000000 = $625,000
NPV of stock alternative = 13625000 - 12818750 = $806,250
e
Use the Stock Alternative, Because NPV is better
