Solar Company Falr Value Solar West Company Book Value Company Book Value Current assets $620,000 $300,000 $320,000 Trademarks.. Patented technology. Liabilities Revenues 150,000 410,000 (390,000) (900,000) 500,000 Not given 150,000 (120,000) (120,000) Expenses.. Investment income 300,000
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Use the following information for Problems 14 through 16:
West Company acquired 60 percent of Solar Company for $300,000 when Solar’s book value was $400,000. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $200,000. Also at the acquisition date, Solar had a trademark (with a 10-year remaining life) that was undervalued in the financial records by $60,000. Also, patented technology (with a 5-year remaining life) was undervalued by $40,000. Two years later, the following figures are reported by these two companies (
What is the consolidated net income before allocation to the controlling and noncontrolling interests?
a. $400,000
b. $486,000
c. $491,600
d. $500,000
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- n Ltd is considerinc X O VitalSource Bookshelf: Manageria X G Marian Ltd is considering two mu X ses/1155/quizzes/6003/take - LIBIS - Sampoerna... Dashboard A VitalSource Booksh... O Spotify - Web Player MLA For Show your computation Scooby Doo Ltd is considering two mutually-exclusive projects with the following details: Project A Initial investment is $450,000 Scrap value in year 5 is $20,000 Year: 1 3 4 5 Annual cash flows 200 150 150 55 100 ($000) Project B Initial investment $100,000 Scrap value in year 5 is $10,000 Year: 1 2 3 4 Annual cash flows ($000) 20 20 30 40 40 33%Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%Data Review View Acrob Page Layout P19 F G D A Using the information provided in the following table, find the value of each asset. Cash Flow End of Amount Asset Year (Php) Appropriate Required Return (%) A 250,000 18 250,000 250,000 15,000 15 0 16 0 0 1,750,000 75,000 12 425,000 100,000 14 150,000 250,000 350,000 200,000 50.000 File dy B C F Home O 1 through 1 2 3 14 5 1 through 5 6 E 1 2 3 4 5 6 Solution and Answer: 123 Insert Shot on OnePlus Powered by Triple Camera Num Ette Formulas
- me IRR-Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table: . The firm's cost of capital is 15%. Options a. Calculate the IRR for each of the projects. Assess the acceptability of each project on the basis of the IRRS. b. Which project is preferred? a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) Is project X acceptable on the basis of IRR? (Select the best answer below.) No O Yes The internal rate of return (IRR) of project Y is %. (Round to two decimal places.) Is project Y acceptable on the basis of IRR? (Select the best answer below.) O Yes Click to select your answer(s). O Type here to searchE Click the icon to view the ne More Info (a) Identity all simple investme DA. Project C B. Project B C. Project D YD. Project A Net Cash Flow Project C $50,000 Project D Project A -$32,000 35,000 25,000 Project B $38,000 $46,300 2,600 6,173 78,345 1 37,000 -26,000 -26,90 -26,006 47.000 (b) Identify all nonsimple investm 15,000 -3,000 DA. Project A VB. Project B OC. Project D OD. Project C Print Done (c) Compute /" for each investment. The rate of return of Project A is 71.1 %. (Round to one decimal place.) The rate of return of Project B is 68.1%. (Round to one decimal place.) The rate of return of Project C is 26 % (Round to one decimal place.)Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future Value
- Consider two mutually exclusive investment alternatives given in the table below. Click the icon to view the cash flows for the projects. (a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 11%.) The rate of return on the incremental investment is%. (Round to two decimal places.)From the following forecast the Balance sheet for the year 2021Balance sheet as of 31/12/2020Liabilities& Equity AmountAssetsAmountEquity33,000 Plant and machinery 10,000Retained earnings 10,000 Land Property20.000Accounts payable 7,000 Accounts receivables 3.000Inventories10.000Cash in hand2000Cash at Bank5.00050,00050,0001. It is expected that the company will make a net income of10% of forecasted sales2. The company will purchase additional 5000 OMR worthmachines by taking an additional loan of 5000 OMR3. Forecasted sales OMR 100,0004. Dividend payout will be 50%5. The following estimates are also given;Accounts payable 10,000Accounts receivable 6,000Inventories 15,000Cash in hand 6.000Cash at bank 1,000Internal rate of return and modified internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR) and modified internal rate of retum (MIRR). If the cost of capital is 13.01%, indicate whether the project is acceptable according to IRR and MIRR. The project's IRR is%. (Round to two decimal places.) If the cost of capital is 13.01% According to IRR you should the project The project's MIRR is % (Round to two decimal places.) According to MIRR you should the project. Next reject accept K
- Year Investment A 2016 $400.000 2017 $400.000 2018 $400.000 2019 $400.000 2020 $400.000 Investment B $100.000 $100.000 $100.000 $1.000.000 $1.000.000 calculate the Npv of both projectNet present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.) xt Librai alculat esource Enter your answer in the answer box and then click Check Answer. Study 1 part remaining Check Answer Clear All ication Tools > Type here to searchne NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, Because of past financial difficulties, ptions the company has a high cost of capital at 14.4%. a. Calculate the NPV of each project, using a cost of capital of 14.4%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.4%. The NPV of project A is $ (Round to the nearest cent.) Is project A acceptable? (Select the best answer below.) O A. No O B. Yes The NPV of project B is $ (Round to the nearest cent.) la nreinnt Danontabl-2/0lest the hant an nr hale Click to select your answer(s). P Type here to search