Reference no: EM132572576
Question 1: A business's receipt of a $115,000 building, with a $75,000 mortgage payable, and issuance of $40,000 of common stock will
Option 1: increase stockholders' equity by $115,000.
Option 2: increase stockholders' equity by $40,000.
Option 3: increase assets by $40,000.
Option 4: decrease assets by $75,000.
Question 2: You are considering investing in a startup project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%. The NPV for this project is closest to:
Option 1: $129,200
Option 2: $29,200
Option 3: $39,500
Option 4: $139,500
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How much was smith net income
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What the npv for the project is closest to
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