Assume that on December 31, 2019, Simsight Corp. signs an 8-year, non-cancelable lease agreement to lease a machine from Nico Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $57,464 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019, is $420,141. 3. The building has an estimated economic life of 10 years, a guaranteed residual value of $8,000, and an expected residual value of $5,600. Simsight depreciates similar machines on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the machine reverts to the lessor. 5. Simsight's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Simsight. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019, 2020, and 2021. Simsight's fiscal year-end is December 31.

The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under: