Question 1 Last year, GNI in a country was $250 billion. Producing this output led to $20 billion in depreciation of physical capital and $15 billion in depreciation of environmental capital. It would cost $5 billion to restore the environmental capital used up in this production and another $10 billion to build up the infrastructure needed to avert further environmental damages caused by this production. Given these values, compute sustainable net national income (NNI)

Question 1 Last year, GNI in a country was $250 billion. Producing this output led to $20 billion in depreciation of physical capital and $15 billion in depreciation of environmental capital. It would cost $5 billion to restore the environmental capital used up in this production and another $10 billion to build up the infrastructure needed to avert further environmental damages caused by this production. Given these values, compute sustainable net national income (NNI)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 11 (Ignore income taxes in this problem.) Z Company has gathered the following data on a proposed investment project: Investment in equipment.................................. $150,000 Annual cash flows........................................... $40,000 Salvage value of equipment............................. $0 Life of the equipment....................................... 10 years Required rate of return.................................... 10% The company uses straight-line depreciation on all equipment. Required: (iv) Is this a viable project?
Assume Apple invested $2.12 billion to expand its manufacturing capacity. Assume that these assets have a 10-year life and that Apple requires a 10% internal rate of return on these assets. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Required1. What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal rate of return? (Hint: Identify the 10-period, 10% factor from the present value of an annuity table, and then divide $2.12 billion by this factor to get the annual cash flows necessary.)2. Access Apple’s financial statements for the fiscal year ended September 30, 2017, from Appendix A.a. Determine the amount that Apple invested in capital assets for 2017. Hint: Refer to the statement of cash flows.b. Did Apple invest more in capital assets or in marketable securities for 2017? What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal…
QUESTION 37 To estimate the future value of a resource, the World Bank and most businesses use _____. a. a 10% annual discount rate b. a 20% annual decrease c. a 20% annual gain in value d. a 10% annual increase e. complicated calculations based upon the specific resource
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QUESTION 37 Advanced Products is considering the purchase of a computer-aided manufacturing system that requires an initial investment of $1,750,000 and is expected to provide an increase in net income of $200,000 and average annual cash benefits and savings of $250,000 each year for the next 10 years. Their current cost of capital is 10%. Following are selected factors from tables for 10 years at 10%: FV of $1 FVOA PV of $1 PVOA 2.59374 15.93742 0.38554 6.14457 Required: Evaluate the investment Both Payback and Accounting Rate of Return measures support the decision to purchase of a computer-aided manufacturing system, but do not consider the time value of money. The net present value is negative which is favorable. There are other relevant variables that need to be considered such as any changes in operating costs and any non-financial or qualitative factors. Both Payback and Accounting Rate of Return measures support…
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1. A company has determined that a certain project will produce revenue of $14 million 1 year from now. The costs are projected to equal $5 million each 2, 3 and 4 years from now. Given a cost of capital of 10%, the Net Present Value of the project equals:$1.42 million $1.56 million$12.72 million$14.00 million
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Assume that Google invests $2.42 billion in capital expenditures, including $1.08 billion related to manufacturing capacity. Assume that these projects have a seven-year life and that management requires a 15% internal rate of return on those projects. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Required1. What is the amount of annual cash flows that Google must earn from those expenditures to achieve a 15% internal rate of return? (Hint: Identify the seven-period, 15% factor from the present value of an annuity table and then divide $1.08 billion by the factor to get the annual cash flows required.)2. Refer to the financial statements in Appendix A. Identify the amount that Google invested in capital assets for the year ended December 31, 2017.3. Did Google or Apple invest more in capital assets for 2017? What is the amount of annual cash flows that Google must earn from those expenditures to achieve a 15% internal rate of…