Question: - A ESE E AaBbCcbd AaBbCcDd AaBbc AaBbcc AaB AaBbc. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtit: Paragraph Styles Ques 1.)

 - A ESE E AaBbCcbd AaBbCcDd AaBbc AaBbcc AaB AaBbc. 1

- A ESE E AaBbCcbd AaBbCcDd AaBbc AaBbcc AaB AaBbc. 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtit: Paragraph Styles Ques 1.) Valueforall Corporation operates under ideal conditions of certainty.It acquired its sole assets (a pen making machine) on January 1, 2019. The asset will yield $500 cash for 4 years at the end of the year; from 2019 to 2022, inclusive, after which it will have no salvage value or disposal costs. The Iinterest rate in the economy is 4%. The purchase of the asset was financed by the issuance of common shares. Valueforall Corporation will pay no dividend at the end of each year. Required a. Prepare a balance sheet and income statement in good form as at the end of December 31, 2019. b. Under ideal conditions, what is the relationship between present value and market value? Explain why. c. Is this true of the real world? Explain why. Ques2.) John is a risk adverse investor. He has $40,000 to invest for one year. He has two choices: Choice #1: Buy shares of Googly Inc., which can payoff: 010 non if Genelu is in a high navoff state (H) and

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