Carts. Inc. purchased new foming machinery five years ago for $5 million.The machinery can be sold to the Romulans today for $4.5 million.Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $750,000, and net working capital of $229,000.If all the current accounts were liquidated today, the company would receive $1.11 million cash.a) What is the book value of Klingon's total assets today?b) What is the sum of the market value of NWC and the market value of fixed assets?

Carts. Inc. purchased new foming machinery five years ago for $5 million.The machinery can be sold to the Romulans today for $4.5 million.Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities of $750,000, and net working capital of $229,000.If all the current accounts were liquidated today, the company would receive $1.11 million cash.a) What is the book value of Klingon's total assets today?b) What is the sum of the market value of NWC and the market value of fixed assets?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 22P: The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,...

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