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a) A fixed asset is procured for NOK 750,000 incl. VAT. Depreciated in the annual accounts with 25% balance depreciation. The acquisition takes place at

a) A fixed asset is procured for NOK 750,000 incl. VAT. Depreciated in the annual accounts with 25% balance depreciation. The acquisition takes place at the beginning of May in year 1. The residual value after six years is estimated at NOK 107,000 How big are the depreciations in year 2?

b) An enterprise has achieved a return on equity before tax of 30% The average borrowing rate is 6%. The equity ratio was 25% How large is the return on total capital?

c) What is meant by working capital? How can a company increase its working capital?

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