When two mutually exclusive projects are being compared, explain
why the short-term project might be ranked...
When two mutually exclusive projects are being compared, explain
why the short-term project might be ranked higher under the NPV
criterion if the cost of capital is high whereas the long-term
project might be deemed better if the cost of capital is low. Would
changes in the cost of capital ever cause a change in the IRR
ranking of two such projects? Why or why not?
9) Capital assets used by governmental funds should be reported
in:
A. The appropriate governmental
funds....
9) Capital assets used by governmental funds should be reported
in:
A. The appropriate governmental
funds.
B. The property, plant, and equipment
fund.
C. Departmental memorandum
records.
D. The governmental activities column
of the government-wide statements.
10) The following items were included in City of Kazoo General
Fund expenditures for the year
ended June 30
Personal computer for the city
treasurer
$ 6,000
Furniture for the mayor’s
office
$ 20,000
How much should be classified as capital...
Current assets = $140,000, net fixed assets = $370,000,
long-term debt = $450,000, net working capital...
Current assets = $140,000, net fixed assets = $370,000,
long-term debt = $450,000, net working capital = –$45,000. If
liquidated, current assets will be sold for $120,000 and net fixed
assets will be sold for $400,000. If repaid, both current
liabilities and long-term debt will cost their book value. What is
the market value of shareholders’ equity?
A.
Below –$110,000
B.
Between –$110,000 and –$90,000
C.
Between –$90,000 and –$70,000
D.
Between –$70,000 and –$50,000
E.
Between –$50,000 and –$30,000...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets
[LO 9-3, LO 9-5]
[The following...
CC9-1 Accounting for the Use and Disposal of Long-Lived Assets
[LO 9-3, LO 9-5]
[The following information applies to the questions
displayed below.]
Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system
to add to the wellness programs at NGS. The machine was purchased
at the beginning of the year at a cost of $25,000. The estimated
useful life was five years and the residual value was $1,000.
Assume that the estimated productive life of the machine is 10,000
hours....
SHOW ALL WORK!
Consider a capital budgeting example with five projects from
which to select. Let...
SHOW ALL WORK!
Consider a capital budgeting example with five projects from
which to select. Let xi = 1 if project i is selected, 0
if not, for i = 1,...,5. Write the appropriate constraint(s) for
each condition. Conditions are independent.
a.
Choose no fewer than four projects.
b.
If project 2 is chosen, project 3 must be chosen.
c.
If project 5 is chosen, project 4 must not be chosen.
d.
Projects cost 130, 220, 150, 75, and 300...