Corporate Finance: Core Principles and Applications (Mcgraw-hill Education Series in Finance, Insurance, and Real Estate)
Corporate Finance: Core Principles and Applications (Mcgraw-hill Education Series in Finance, Insurance, and Real Estate)
5th Edition
ISBN: 9781259289903
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 27QP
Summary Introduction

To prove: That NFAendNFAbeg+D is equivalent to FAendFAbeg

Where,

NFAend refers to the net fixed assets at the end of the year

NFAbeg refers to the net fixed assets at the beginning of the year

D refers to the depreciation

FAend refers to the gross fixed assets at the end of the year

FAbeg refers to the gross fixed assets at the beginning of the year

Introduction:

Net fixed assets refer to the asset value of the company after charging depreciation. Depreciation refers to the reduction in the value of an asset. It also refers to method of apportioning the cost of the asset over its beneficial life.

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