(P 50,000)P100,000.P130,000.P50,000. Flum Packages, Inc.AssetsCurrent assetsFixed assetsTotalLiabilities & Equity100,000 Current Liabilities200,000 Long-term debtEquity300,000 Total$ 50,000120,000130,000# 300,000The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's currentliabilities cost 7 percent to maintain and the average annual cost of long-term funds is 20 percent.The firm's initial net working capital is

Working capital :— It is the difference between current assets and current liabilities. Working…

Answered: Flum Packages, Inc. Assets Current…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5. A manufacturing company purchased a machine with first cost of P70,000. The company wants to buy an option that will allow it to purchase the machine for the same price of P70,000 for up to 1 year from now. If the company's MARR is 10% per year, the maximum amount the company should pay for the option is closest to: * P 5850 P 6365 P 6845 O P 7295
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こS13つシ Obama Ltd has made an investment that is expected to generate a cash flow of $20,000 each year for the next five vears. If Obama uses a discount rate of 5% on this investment, the present value of this investment for Obama is (to the nearest dollar): PVF(I+レ) Cito.osj5 ーム $86,590 b. $101,766 $101,154 00 C. d. $101,0 %3D
Use the NPV method to determine whether Root Products should invest in the following projects: • Project A: Costs $275,000 and offers eight annual net cash inflows of $53,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $380,000 and offers 9 annual net cash inflows of $74,000. Root Products demands an annual return of 10% on investments of this nature. E(Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1-8 Present value of…
25. How long will it take money to double itself if invested at 6% compounded annually? A. 13.7 years В. 14.7 years С. 14.2 years D. 15.3 years
Question 1 Angho has the following additions: • Equipment £50,000 • Motor car (personal use 10%) £20,000 • Computer É10,000 Calculate his AIA (Annual Investment Allowance)
343 / 5000 Resultados de traducción 8. A person has a land for sale and they have made two offers:a) First offer: ¢ 4,100,000 in cash and 12 monthly payments of ¢ 300,000.b) Second offer ¢ 3,800,000 in cash and 3 semi-annual payments of ¢ 1,400,000.Which of the 2 offers is more convenient if you can deposit the resources at 12%, compounded monthly?
J 2
2.30 3 , st AMUW c. P677,194.85 d. P635,983.14 SITUATION 8: A brand new record player costs #25,000 has an estimated life of 4 years and can sold P5000 at the ond of 4 years. Compute the book valuc at the end of 3 years using the following; 60. Using the sinking fund method. If i=10% a. P14,264.15 c. P12,968.30 b.P10,735.85 d. P11,789.37 61. Using SYD method. a. P7,955 b. P8,750 c. P7,000 d. P6,575 62. Compute for the book value at the end of 2nd year Using Double Declining Method. b. P7,812.5 d. P5,870 PA MEW a. P6,250 c. P7,102.27 SITUATION 9: From the measured values of distance EF, The following trials were recorded. Trials Distance
Question 5 You inherited $300,750 and invested it at 6.25% per year. How much could you withdraw at the beginning of each of the next 15 years? O a. $32,443. O b. $24,020. Oc. $25,522. Od. S29,622. e. $23,035.
40 7 520,000 25 98,700 13 LO 1 8. Calculating Annuity Values For each of the following annuities, calculate the future value. Annual Payment Years Interest Rate $2,100 10 8% 6,500 40 1,100 9. 6 5,000 30 10
List Price: P100,000 Trade Discount: 20%, 10% What is the Invoice Price?

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