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Capital Budget Problem:
This case continues following the new project of the We PPROMOTE Company, that you and your partner own. We PROMOTE is in the promotional materials business. The project being considered is to manufacture a very unique case for smart phones. The case is very durable, attractive and fits virtually all models of smart phone. It will also have the logo of your client, a prominent, local company and is planned to be given away at public relations events by your client.
More details have emerged and your estimates are becoming more precise.
The following are the new values to the data that you have been estimating up to this point:
Calculate the net present value, and determine whether the project is worth doing from a financial perspective.
What happens if we do not define or define wrongly, Why is it so important for us to differentiate between the two
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1. Prepare a schedule to show how the investment cost is allocated to identifiable assets and liabilities. 2. Prepare a balance sheet for Pub Corporation on January 1, 2011, immediately after the acquisition.
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