In capital budgeting analysis, tax can have a significant impact. The capital budgeting items will most likely be influenced by tax and hence, the values need to be adjusted. It is important to understand taxed capital budgeting items so that the calculation can have better accuracy. Firstly, the relevant cash […]
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Time Value of Money, Discounted Cash Flow, and NPV
The time value of money dictates that one dollar in hand today is worth more than one dollar to be received in the future, since one dollar now could be invested and the holder can earn interest to generate more than a dollar in the future (Brigham & Houston, 2019). […]
Depreciation expenses in capital projects and leasing arrangements
Treating depreciation expenses in capital projects and leasing arrangements can be a confusing task for student of managerial accounting. It is an expense that affect income statement but it is not a cash flow. This article will try to address the confusion and provide a simple and straightforward information about […]
Capital and Legal Structure in a Company’s Bankruptcy Process
Capital and legal structure in a company’s bankruptcy process will determine the details on the liquidation of the asset. When a company is overburdened with liabilities and unable to repay, the company should file for a legal process addressing the issue. This legal proceeding is called bankruptcy. The process usually […]
The Exceptional Service Grading Company Financial Ratios Analysis
Introduction The Exceptional Service Grading Company (ESGC) provides grading, certification, and encapsulation for collectors’ comic books to protect their investments. Due to the high record trends in the industry, the company is having a great success. The success pushes ESGC to expand to assessing other publication formats, such as magazines […]