fin504_week_1_solution - Monsanto Corporation Purchase of...

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Monsanto Corporation Purchase of New Equipment Cost-Benefit Analysis Benefits with the new equipmen ### Less: Benefits with the old equ ### Marginal (added) benefits of the ### Cost of new equipment ### Less: Proceeds from the sale o ### Marginal (added) costs of the N ### Net benefit of the proposed purchas ###
P1-1 Investment=$25000 Outstanding debt=$60000 Outstanding debts exceed the investment by=$35000 a) Sole proprietorship In first case if the company is sole proprietorship, then the liability of proprietor is unlimited so in this case Merideth Harper will be liable to pay the exceeded debt of $ 35,000 from his personal properties. b) 50-50 partneship in second case of 50-50 partnership with ms. Harper and Christopher Black, the liabilities of partners are unlimited. So Merideth will be liable to the outstanding debts of $35,000 from his personal properties. c) Corporation In third case of corporation, the liabilites of stockholders are limited only to the extent of their investment so in this case Mer

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