Business owners equity at commencement of year

Reference no: EM139407

Q1. You are presented the investment in local business for= $500,000, also told that business can be sold after 1 year. After-tax cash flow from sale of business is evaluated to be=$600,000. If opportunity cost of capital is 14%, compute the present value of business (net of original cash outflow of= $500,000 today)?

Q2. In the present year, assets of Quality Stairs increased by= $175,000 also liabilities decreased by= $15,000. If owners' equity in business is= $475,000 at the ending of year, owners' equity at commencement of year should have been.

Reference no: EM139407

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