Market Values and Book Values [L LO1] Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $6million. The machinery can be sold to the Romulans today for $5.4 million. Klingon's current balance sheet shows netfixed assets of $3.5 million, current liabilities of $945,000, and net working capital of $275,000. If the current assets andcurrent liabilities were liquidated today, the company would receive a total of $1.25 million cash. What is the book valueof Klingon's total assets today? What is the sum of the market value of NWC and the market value of fixed assets? 12Given Info.Machinery Cost6,000,000AgeSales Price3 yrs5,400,000Net Fixed Assets3,500,000BV Current Liab945,000BV NWC275,0001,250,000BV of current assets + BV of long-term assetsCA - CL = NWCBV of Total Assets =Find BV of current assetsBV of current assets - BV of NWC + BV of current liabBV of current assets=BV CAMV NWCBV NFAMV NFA10

Net Working Capital: It is the difference between the corporation's current assets and its current…

Answered: current liabilities were liquidated…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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3. Market Values and Book Values Benedict Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Allen Inc. today for $18 million. Benedict's current balance sheet shows net fixed assets of $15.5 million, current liabilities of $700,000, and net working capital of $226,000. If all the current accounts were liquidated today, the company would receive $1.08 million cash. a. What is the book value of Benedict's assets today? b. What is Benedict's market value of assets?
[EXCEL] Investment cash flows: Zippy Corporation just purchased computing equipment for $20,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $12,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent. Please use excel
Domestic
Vaibh Sub: acounting
10. Gringo Company
Gmail > docs.google.com a P Company is trying to decide whether to acquire S Co., P Co. expects that S will earn approximately $200,000 per year in net income over the next five years. This income is higher than the 14% annual return on assets considered to be the industry "norm." Read the above case and choose the best answer of the following: If the fair value of Hager Inc. assets equal to $1,000,000. What is the estimation of goodwill if P Co. is willing to pay for excess earnings for an expected life of 4 years? * $250,000 $240,000 $260,000 None of the answers
17 Acme is considering the sale of a machine with a book value of P160,000 and 3 years remaining in its useful life. Straight-line depreciation of P50,000 annually is available. The machine has a current market value of P200,000. What is the cash flow from selling the machine if the tax rate is 30%? Group of answer choices P200,000 P192,000 P190,000 P50,000 P184,000 P188,000 P172,000 P160,000
10.
Exercise 14A-4 (Algo) Basic Present Value Concepts [LO14-7] Fraser Company will need a new warehouse in eighteen years. The warehouse will cost $410,000 to build. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $410,000 available at the end of the eighteen-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.)
Net Present Value Analysis [LO12-2] Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The company's discount rate is 13%. After careful study, Oakmont estimated the following costs and revenues for the new product: Cost of equipment needed Working capital needed Overhaul of the equipment in two years Salvage value of the equipment in four years Annual revenues and costs: Sales revenues $ 260,000 Variable expenses $ 125,000 Fixed out-of-pocket operating costs $ 71,000 When the project concludes in four years the working capital will be released for investment elsewhere within the compar Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: Calculate the net present value of this investment opportunity. (Round your final answer to the nearest whole dollar amount.) Net present value $ 135,000 $ 61,000 $ 7,000 $ 11,000
2 Net Present Value (NPV) Example 1 (Ross et al., 2023, pp. 299-300): We want to establish a new fertilizer business. The project costs $30,000 to launch. The project can generate cash revenues of $20,000 per year. The project will incur cash costs (including taxes) of $14,000 per year. The project will be terminated in 8 years and the project's assets can be sold for $2,000 at that time. A 15% discount rate is appropriate for this project. a. Should we undertake this project? b. If there are 1,000 shares of stock outstanding, what will be the effect on the price per share from taking the project?
toks

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current liabilities were liquidated today, the company would receive a total of $1.25 million cash. What is the book value of Klingon's total assets today? What is the sum of the market value of NWC and the market value of fixed assets?