At December 31, 2011, Daewoo Inc

question 84

Multiple Choice

At December 31, 2011, Daewoo Inc.reported total assets of W201,295,000, and net income of W50,335,000 for the current year.Daewoo determined that inventory was overstated by W1,600,000 at the beginning of 2012 (this was not corrected) .What is Daewoo's corrected amount for total assets for 2011?

• A)W150,969,000.
• B)W199,695,000.
• C)W202,895,000.
• D)W251,630,000

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Definitions:

Project NPV

The difference between the present value of cash inflows and outflows of a project, used to assess its profitability.

Opportunity Costs

The potential benefits missed out on when choosing one alternative over another.

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.