During 2014 carne corporation transferred inventory to nolan corporation and agreed to repurchase the merchandise early in 2015. nolan then used the inventory as collateral to borrow from norwalk bank, remitting the proceeds to carne. in 2015 when carne repurchased the inventory, nolan used the proceeds to repay its bank loan. on whose books should the cost of the inventory appear at the december 31, 2014 balance sheet date? a. carne corporationb. nolan corporationc. norwalk bankd. nolan corporation, with carne making appropriate note disclosure of the transaction

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.