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Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.6 million.
Klingon Widgets, Inc., purchased new cloaking machinery four years ago for $4 million. The machinery can be sold to the Romulans today for $3.6 million. Klingons current balance sheet shows net fixed assets of $2 million, current liabilities of $700,000, and net working capital of $216,000. If all the current assets and current liabilities were liquidated today, the company would receive $1.03 million cash.
b. What is the sum of the market value of NWC and the market value of fixed assets? | |||
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