Kivi Service Stations is considering expanding its operations to include the greater Dubuque area. Rather than build new service stations in the Dubuque area, management plans to acquire existing service stations and convert them into Kivi outlets. Kivi is evaluating two similar acquisition opportunities. Information relating to each of these service stations is presented as follows. Joe’s Garage Gas N’ Go Estimated normal rate of return on net assets 20 % 20 % Fair value of net identifiable assets $ 950,000 $ 980,000 Actual average net income for past five years 220,000 275,000 Required: a. Compute an estimated fair value for any goodwill associated with Kivi purchasing Joe’s Garage. Base your computation upon an assumption that successful service stations typically sell at about 9.25 times their annual earnings. b. Compute an estimated fair value for any goodwill associated with Kivi purchasing Gas N’ Go. Base your computation upon an assumption that Kivi’s management expects excess earnings to continue for four years.

How much are you willing to pay for a zero that matures in 10 years, has a face value of $1,000 and your required rate of return is 7%? round to the nearest cent. do not include a dollar sign in your answer. (i.e. if your answer is $432.51, then type 432.51 without $ sign)

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.

Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?