Answer:
$17.1 million
Explanation:
The proper cash flow amount to use as the initial investment in fixed assets when evaluating this project can be calculated as follows
DATA
Fair value of land = 4.6 million
Cost to build a plant = 11.8 million
Grading cost = 0.7 million
Solution
Initial investment = Fair value of land + Cost to build a plant + Grading cost
Initial investment = $4.6 million + $11.8 million + $0.7 million
Initial investment = $17.1 million
Answer:
$86,166.31
Explanation:
We use future value (FV) formula as follows:
Step 1: Calculation of amount to have after five years:
Five years FV = $10,000 × (1 + 0.1)^5
= $10,000 × (1.01)^5
= $10,000 × 1.61051
Five years FV = $16,105.10
Therefore, $16,105.10 will be realized after five years.
Step 2: Calculation of amount to have after twelve years:
Twelve years FV = $16,105.10 × (1 + 0.15)^12
= $16,105.10 × (1.15)^12
= $16,105.10 × 5.35025010547371
Twelve years FV = $86,166.31
Therefore, you will have $86,166.31 after 17 years.
Depreciation expenses should be added to after-tax ebit to get operating cash flows because it is a non-cash charge deducted from revenue in the net income calculation.
Cash flow is the movement of money, real or virtual. Strictly speaking, cash flows are specifically payments from one central bank account to another. The term "cash flow" is most commonly used to describe cash flow. Cash flow refers to the net balance of cash entering or exiting a company at a particular point in time.
Cash flows in and out of business all the time. For example, when a retailer purchases inventory, money flows from the store to the supplier.
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Answer:
d. is the amount of consideration that a company expects to receive from a customer.
Explanation:
The price of the transaction is the expected amount that the customer receives to transfer the goods and services. This transaction price depends on the project being completed.
The transaction price plays a major role in recognizing the revenue as it specifies the contract with the customer, performance obligations, after which only the transaction price is evaluated, then the allocation is done and finally revenue is recognized
The types of companies that make particularly attractive acquisition targets would be financially distressed companies with good turnaround potential, undervalued companies that can be acquired at a bargain price, and companies that have bright growth prospects but are short on investment capital.
Acquisition Target
Target acquisition is the detection and identification of a target's position in sufficient detail to allow the efficient use of lethal and non-lethal measures. The phrase refers to a wide range of uses.
A "target" is an entity or object that is being considered for possible engagement or other action (see Targeting). Targets include mobile and stationary units, forces, equipment, capabilities, facilities, people, and functions that an enemy commander can utilise to execute operations. It could include things like target acquisition, joint targeting, or information operations.
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