The ____________ is multiplied by a certain number of years to arrive at the value of goodwill.
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- Calculate goodwill at three year purchase of the average profits of last five years’ profits. The profits of the last five years were: RO. 23,000, RO. 27,000, RO. 32,000, RO. 20,000 and RO. 18,000. Therefore, the amount of goodwill will be: a. RO 36,000 b. RO 72,000 c. RO 24,000 d. RO 144,000 fast pleaseCalculate goodwill at twice the average profits of last four years’ profits. The profits of the last four years were: RO. 13,500, RO. 19,500, RO. 8,000 (Loss) and RO. 20,000. Therefore, the amount of goodwill will be: a. RO 22,500 b. RO 67,500 c. RO 45,000 d. RO 12,500 ***fast please****What must be the total present value of the following ? Amount To be received after a) P 20,000 1 year b) P 35,000 2 years. c) P 40,000. 3 years
- Which one of the following would correctly describe the net realisable value of a two year old asset? Select one alternative The original cost of the asset less two years' depreciation The cost of an equivalent new asset less two years' depreciation The amount that could be obtained from selling the asset, less any costs of disposal The present value of the future cash flows obtainable from continuing to use the assetIf the current value of a chemical plant is $ 800 thousand, its scrap value is $ 50 thousand, the service life is 8 years, the interest rate is 7%, the depreciation value and book value for each year,a) Calculate using the accumulated fund method.b) Show depreciation and book value changes by years on the chart.What is the average amount invested in a machine during its predicted five-year life if it costs $200,000 and has a $20,000 salvage value? Assume that net income is received evenly throughout each year and straight-line depreciation is used.
- When an investment’s annual net cash inflows are equal every year, the investment’s payback period can be calculated as: (See your Chapter 25 notes, page 2) When an investment’s annual net cash inflows are equal every year, the investment’s payback period can be calculated as: (See your Chapter 25 notes, page 2) Initial cost of the investment minus the annual net cash inflow Average amount of the investment divided by the average annual net income Initial cost of the investment divided by the annual net cash inflow Present value of net cash inflow divided by the initial cost of the investment Future value of net cash inflow divided by the initial cost of the investment Present value of the net cash inflow minus the initial cost of the investment Annual net cash inflow minus the initial cost of the investment Average annual net income divided by the average amount of the investmentCapitalized cost is an application of perpetuity. It is the sum of the first cost and the present worth of all future payments and replacements. A machine costs P300,000 new, and must be replaced at the end of each 15 years. If the annual maintenance required is P5,000, find the capitalized cost, if money is worth 5% and the salvage value is P50,000.How can the initial investment be depreciated on a seven-year MACRS?
- If the current value of a chemical plant is $ 800 thousand, its scrap value is $ 50 thousand, the service life is 8 years, the interest rate is 7%, the depreciation value and book value for each year, By the linear method With the decreasing balances method By the method of summation of years Calculate using the accumulated fund method. Show depreciation and book value changes by years on the chart.Suppose that you are asked to derive the depreciation rate for a house on rural property. The contributory value of the house is $50,000, the replacement cost is estimated to be $80,000, and its effective age is 10 years. Calculate the annual percentage depreciation for this house. 3% 3.75% 4% 4.75%If an asset has a first cost of $50,000 with a $10,000 estimated salvage valueafter 5 years, calculate the annual SL depreciation and plot the yearly bookvalue.