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Use the following financia information in order to solve and answer questions Q Farms Balance Sheet -$100,000 Non-Current Assets-$820,000 Current Lsibities $25,000 25 Based upon

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Use the following financia information in order to solve and answer questions Q Farms Balance Sheet -$100,000 Non-Current Assets-$820,000 Current Lsibities $25,000 25 Based upon the financial statement above. What is Q Farms current Owners Equity or Net Worth? $570,000.00 b $350,000.00 C $470,000.00 d. $395,000.00 Q Farms Income Statement Net Income $123,000 Principal Debt Service Requirements $21,000 Estimated Living Expense/Owners Draws $40,000 Q Farms Investment Option Purchase Price of New Truck- $42,000 Year One Net Inflow-$54,000 Year Two Net Infiow $82,000 Owners Desired Return (cost Equity)-10% Average Cost of Debt-7% Calculate the Net Present Value of the above Truck purchase. Use 8% as cost of capital. a.) $61,155.01 b $157,857.75 c $145,155.01 d. $116,000.00 26 Page 6

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