Question
A corporation reported cash of $27,800, total assets of $465,000, and current liabilities of $159,365 on its balance sheet. Its common-size percent for cash equals:
A corporation reported cash of $27,800, total assets of $465,000, and current liabilities of $159,365 on its balance sheet. Its common-size percent for cash equals:
Multiple Choice
16.73%.
59.80%.
100.00%.
5.98%.
1673.00%.
An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as:
Multiple Choice
Annual net cash flows.
Rate of return on investment.
Net present value.
Payback period.
Unamortized carrying value.
J&H Company has a router platform with a book value of $85,000 and a three-year remaining life. A new router platform is available at a cost of $145,000, and J&H can receive $18,000 for trading in the old router platform. The old router platform has variable manufacturing costs of $71,000 per year. The new router platform will reduce variable manufacturing costs by $33,000 per year over its three-year life. Should the router platform be replaced?
Multiple Choice
Yes, as will increase income by $33,000 in total.
Yes , as it is always important to have current technology.
No, it will decrease income by $28,000 in total.
Yes, as the company will increase income by $28,000 total.
J & H will be not be better or worse off by replacing the router platform.
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