Answer:
A. 1,406
Explanation:
Double-declining balance formula = 2 X Cost of the asset X Depreciation rate
The cost of asset = $7,500
salvage value = $500
estimated useful life = 8years
To calculate the depreciation value using Double-declining balance formula = 2 X Cost of the asset X Depreciation rate
Depreciation rate = 1/useful life *100 = (1/8) * 100 = 12.5%
Therefore
2 x $7500 x 12.5% = $1,875 - year 1
for the second year the cost of asset will be$ 7,500 - $1,875 = $5625
2 x $5625 x 12.5% = $1,406.25
Therefore the answer is $1,406
Answer: best case Nvp $2,943,304,509.57
Worse case NVP
-$2, 601,609,39
Answer:
a. Borrow using short-term notes payable and use the cash to increase inventories.
Explanation:
The formula to compute the current ratio is shown below:
Current ratio = Total Current assets ÷ total current liabilities
where,
The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets
And, current liabilities would be
= Short-term obligations + Accounts payable
If the current ratio is 0.5 which means that the current asset is 1 and the current liabilities are 2 so the most appropriate option is a.
Answer:
The total corporate value of the firm is $3,000,000
Explanation:
The total corporate value of the firm is computed as:
Total corporate value = FCF1 / (average cost of capital - Growth rate)
Where
FCF1 is $150,000
Growth rate is 6.5%
average cost of capital is 11.5%
Putting the values :
= $150,000 / (11.5% - 6.5%)
= $150,000 / 5%
= $3,000,000
Answer:
A.
Explanation:
Based on the information provided within the question it can be said that this is many times a necessary part of strategy implementation. This term refers to the process which a company undergoes in order to begin putting the chosen plans and strategies into action with the hopes of achieving the desired goal. This process many times requires situations like the one in question to be handled.
