Ravine corporation purchased 30 percent ownership of valley industries for $90,000 on january 1, 20x6, when valley had capital stock of $240,000 and retained earnings of $60,000. the following data were reported by the companies for the years 20x6 through 20x9: dividends declared year operating income, ravine corporation net income, valley industries ravine valley 20x6 $ 140,000 $ 30,000 $ 70,000 $ 20,000 20x7 80,000 50,000 70,000 40,000 20x8 220,000 10,000 90,000 40,000 20x9 160,000 40,000 100,000 20,000 required: a. what net income would ravine corporation have reported for each of the years, assuming ravine accounts for the intercorporate investment using the cost method and the equity method? b-1. give all appropriate journal entries for 20x8 that ravine made under the cost method. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. use the irr decision to evaluate this project; should it be accepted or rejected