Historical value-replacement value and net realizable value

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1 : Historical Value : Present value of cash flow: Information : Your company sells 1500 cases computer chips to Mr. ABC. Mr. ABC agree to pay your company $ 400,000 at the end of each of the next 6 years, with 7.5%. Instructions: 1] Determine the present value of 6 year of 7.5% 2] Calculate the cash payment deduction each year for 6 years. 3] please show your calculation clearly with explanation / interpretation.

2 : Replacement value and Net realizable value: Company expects the normal profit is 25% Information: Products A B C D E F Cost $ 6.50 $4.00 7.50 9.50 5.50 4.75 Replacement Cost 6.50 5.00 6.50 7.50 3.00 4.50 Expected Selling Price 11.00 3.00 8.00 9.50 10.00 4.00 Cost to Complete or sale 4.50 2.00 3.00 5.50 2.50 2.00 Normal Profit (Assuming) 3.00 1.00 2.00 3.00 2.00 0.50 Instructions: [1] You will create three tables to determine the Net Realizable Value = Ceiling ; Net Realization Value = Floor; Value will be used as the market amount [2] Please explain each value will be used as the market amount [3] Please provide a clear calculation and brief explanation.

Reference no: EM131444352

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