<span>The amount of interest expense recognized by Congo Express Airways would be $199,334 after one year of being issued. This is calculated by finding 6% of the $3,700,000 which is $222,000. Then subtracting the amortized amount of $22,666 per annum, which was found by doubling the 6 month rate of $11,333. This gives you a total of $199,334.</span>
Answer:
$172.25
Explanation:
initial outlay for the project = -$350
cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80
using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:
=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25
we can also do it manually:
NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25
The profit motive
Hope this helped!
STSN
Answer:
increase in the market value per share
Explanation:
Market value per share is the price that the share of a company can be traded if it is to be sold to a willing investor in a stock market.
The market value per share is determined by the company's financial performance, favorable market information concerning the enterprise, perceived future prospects plus investors or public confidence.
One of the goals of financial management is the maximization of the shareholders wealth, this will find expression in how the business actions or inaction of the management has enriched the shareholders.
