MetalMouth Received a $2 Million Government Innovation Grant

question 15

Multiple Choice

MetalMouth received a $2 million government innovation grant. MetalMouth invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $600 000 a year on storm water clean-up efforts. If MetalMouth is able to sign up and retain four shipyards from the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for MetalMouth is 15% per year? Assume a cost of operations and other costs for SAP equal 40% of revenue.

• A)$6.7 million
• B)$7.9 million
• C)$6.3 million
• D)$7.6 million

Understand and record transactions related to controlling and significant influence in equity securities.

Differentiate between types of investments based on intentions like held-to-maturity, available-for-sale, and trading securities.

Comprehend the accounting treatment for foreign exchange transactions and the impact of exchange rate fluctuations.

Interpret financial metrics such as profit margin, total asset turnover, and return on total assets.

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Definitions:

Lobotomy

A surgical procedure that involves severing connections in the brain's prefrontal cortex, historically used to treat mental illness with often severe consequences.

Bloodletting

An ancient medical treatment that involved withdrawing blood from a patient to cure or prevent illness and disease.

Shaman

A person regarded as having access to, and influence in, the world of benevolent and malevolent spirits, often acting as a healer and spiritual leader within indigenous cultures.

Exorcism

A religious or spiritual ritual performed to expel evil spirits or demons from a person or place believed to be possessed.