Answer:
The gain/loss on the sale of the 15,000 shares is $20,000
Explanation:
The value of the investment as at the end of 2018 using the equity method is computed thus:
Note that 30% of 100,000 shares=30,000 shares
ending value =initial investment+share of profit-share of dividends
ending value =$1,500,000+($300,000*30%)-($100,000*30%)
ending value=$1560000
gain/(loss)=$800,000-($1560000
*15000/30000)
gain/(loss)=$20,000
Answer:
FV= $1,260,205.98
Explanation:
Giving the following information:
Annual deposit= $5,250
Number of years= 35 years
Annual interest rate= 0.0947
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,250*[(1.0947^35)-1] / 0.0947
FV= $1,260,205.98
Answer:
11400
the investment should be made because NPV is positive
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV =( Net annual cash flows x present value factor) - cost
(37300 x 5,02 ) - $175,846 = 11400