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Ive a question about capitalizing R&D expense. Year R&D expense 0 600 -1 300 -2 240 -3 210 -4 400 -5 150 The life for
Ive a question about capitalizing R&D expense.
Year | R&D expense |
0 | 600 |
-1 | 300 |
-2 | 240 |
-3 | 210 |
-4 | 400 |
-5 | 150 |
The life for R&D investment is 3 years.
For current year, EBIT is 600, a net CapEx is 220, pre-tax interest expense is 70, while tax rate is 30%.
Given book value of equity is 1400 and book value of debt is 2000 with no excessive cash.
Question1: What is the value of the R&D asset in current year and whats the amortization for current year?
Question2:What is adjusted Net operating income and what is adjusted ROC?
Can I have some solution with steps plz?
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