Monterey company is considering investing in two new vans that are expected to generate combined cash inflows of $30,000 per year. the vans’ combined purchase price is $93,000. the expected life and salvage value of each are four years and $23,000, respectively. monterey has an average cost of capital of 7 percent. (pv of $1 and pva of $1) (use appropriate factor(s) from the tables provided.)
required:
calculate the net present value of the investment opportunity. (round your intermediate calculations and final answer to 2 decimal places.)
indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted.
a. net present value?
b. will the return be above or below the capital?
should the investment opportuntity be accepted?

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.

Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.