sold 500 tickets therefore it is not economically efficient
Answer:
NPV = $-42,124.72
Explanation:
The new present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-54,000
Cash flow each year in year 1 and 2 = $2,600
Cash flow in year 3 = $2,600 + $7,200 = $9,800
I = 10%
NPV = $-42,124.72
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
The correct answer is A.
Explanation:
Giving the following information:
On October 1, 2014, Mann Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= 60,000/5=12,000
3 months depreciation= 12,000/12*3= 3,000
Answer:
Invalid
Explanation:
Since it is stated in the will, that upon his death should the assets be transferred, it means that Silvia doesn't get anything until Mr Jacob ceases to be alive.
With the new development as regards Mr Jacob living for 6 more months before dying, Silvia has no assets yet and as such cannot transfer anything to Jacob Jnr.
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