Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000 and has a salvage value of $8,000 at the end of 6 years.
Q: Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down…
A: First, we will calculate the present value of the amount then we will add the downpayment so as to…
Q: [The following information applies to the questions displayed below.] Following is information on an…
A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…
Q: What is the present value of a perpetual stream of cash flows that pays $3,500 at the end of year…
A: Cash flow =$3500 Annual growth rate is 4% To Find:- Present value of a growing perpetuity if…
Q: Isla, Prat, and Noni held a press conference to announce that they plan to buy an egg factory that…
A: Cost of Egg factory is Php 500,000 Amount deposited today is Php 140,000 Amount deposit one year…
Q: Determine the range of the following set of values. 48 42 55 28 112 79 95 27 36 14 96 193 191
A: The range is basically the measure of dispersion. It is the dispersion which is equal to the…
Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…
A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…
Q: After making the twenty-sixth payment on your car loan, you wanted to find out how much is left of…
A: Loan amount (PV) = $27000 Interest rate = 7.1% Monthly interest rate (r) = 7.1%/12 =…
Q: Below are the annual returns provided by TSCM. Calculate average annual return experienced by an…
A:
Q: Stock W's standard coefficient of variance (CV) is Stock W’s Sharpe ratio assuming the risk-free is…
A: 1. Calculation of Stock W's Expected return and Standard Deviation State of Economy Probability…
Q: (a) Find their regular monthly payment. (Round your answer to the nearest cent.) $125000 X (b) Find…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: shares of Stock B that sell for 2. Portfolio Expected Return You own a portfolio that has $3,140…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: The IRR on the Market is :
A: The internal rate of return refers to the profitability of the potential investments. It makes the…
Q: Joe Levi bought a home in Arlington, Texas, for $128,000. He put down 30% and obtained a mortgage…
A: A mortgage is a loan on a property in which the property itself is used as collateral.
Q: Lucinda placed $12,000 in a 16-month term deposit paying 5.05% simple interest. How much will the…
A: Deposit amount = $12000 Period = 16 Months Interest rate = 5.05%
Q: Investor Matt has $661,000 to invest in a CD and a mutual fund. The CD yields 7.3% and the mutual…
A: Amount to be invested is $661,000 CD yields 7.3% Average yield of mutual fund is 7.7% Minimum…
Q: while the material quantity van materials purchased in June wa
A: Material price variance = -7000 SP*AQ-AP*AQ=-7000 SQ*SP-AQ*SP=4200 SP*SQ-AP*AQ=4200-7000=-2800…
Q: The yield to maturity for 25-year bonds is as follows for four different bond rating categories. Use…
A: The bond price is the present value of future cash flows arising from the bond. This includes…
Q: What is the risk-return tradeoff that arises when . firm manages its working capital? Give tangible…
A: Financial risk is referred as the possibility or chance of losing the investment, basically an…
Q: Calculate the tax rate if the tax amount is $ 64.50 on a purchase of $780?
A: Tax amount = $64.50 Purchase = $780
Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…
A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…
Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…
Q: Stock W has the following returns for various states of the economy: State of the Economy…
A: Expected Return and Standard deviation of the Stock is determined using the below formula: Expected…
Q: 13 years ago, Sallie invested \$23{,}000.00$23,000.00 into a savings account. She now has…
A: Compounding: A compounding is the interest charged on interest. When any investment is made for…
Q: An all-equity firm that has projected perpetual EBIT of $204,000 per year. The cost of equity is…
A: Unlevered Firm: The unlevered firm is the firm which contains only equity capital in its capital…
Q: Consider the publie project at the end of the handout on "TVM and Cost-Beneft Analysis," which we…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment. NPV will be…
Q: due at the end of 2 years and 9 mon 26. Find the semi-annual payment at the end of every six months,…
A: An annuity is a payment plan where future periodic payments are made in exchange for a lump sum…
Q: 13. Using CAPM A stock has a beta of 1.14, the expected return on is 10.9 percent, and the risk-free…
A: CAPM is the capital asset pricing model. As per this model, the expected return on stock = Risk free…
Q: An investment in equipment with a 5-year MACRS property class is being considered. The operating…
A: Here
Q: Exercises 121 O and 122 D: For the given annual interest rate estimate the time for P dollars to…
A: We need to use NPER function in excel to calculate time The formula is =NPER(RATE,PMT,-PV,FV)
Q: Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarter's…
A: Here, Required Platinum is 10,000 ounces Future Contract Rate is $950 per ounces Time Period of…
Q: For this assignment, you are to construct a diagram of the Fraud Triangle and clearly label each…
A: The fraud triangle is a concept that auditors use to explain why someone might choose to conduct a…
Q: Explain the advantage of saving early?
A: Money received today is worth more than money due at a later date, according to the time value of…
Q: 11.4 CAPM Suppose the risk-free rate is 8 percent. The expected return on the market is 14 percent.…
A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…
Q: A couple bought some stock for $30 per share that pays an annual dividend of $0.60 per share. After…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
Q: sideration. The new machine costs $1500 and requires an additional working capital investment of…
A: Marginal tax rate 55% Book value of old asset 1500 Salvage value of old machine 750 Loss on…
Q: Find a recent merger transaction that failed due to regulatory concerns over market share…
A: Many a times regulators block a M&A (mergers and acquisitions) deal on the basis that it will…
Q: If i= 14.8% per year, compounded monthly. What is the effective interest rate per semiannual? (ABET,…
A: Interest rate (i) = 14.8% Number of compounding per year (m) = 12
Q: The risk-free rate of interest is 2.1% and the market return is 9%. Howard Corporation has a beta of…
A: Risk free rate (Rf) = 0.021 Market return (Rm) = 0.09 Beta (b) = 1.75 Required return = ?
Q: Springfield mogul Montgomery Burns, age 90, wants to retire at age 100 so he can steal candy from…
A: Here, Withdrawal Amount after Retirement is $1.1 billion Time Period of Withdrawal is 7 Years…
Q: A convertible bond is selling for $800. It has 10 years to maturity, a $1000 face value, and a 10%…
A: Selling price of a convertible bond = $800 Face value = $1,000 Coupon rate (semi-annually) = 10%…
Q: One-year Treasury securities yield 6.9 percent, while 2-year Treasury securities yield 7.2 percent.…
A: Nothing says "safety of principal" like Treasury securities when it comes to conservative…
Q: If the same two $15,000 deposits are made (at time 0 and end of year 4) into a differ account that…
A: i) If $15,000 invested at time 0 Considering time period is 5 years Solved using Financial…
Q: Find the effective rate of interest if the nominal rate is 12 % compounded bi - monhtly.
A: Annual Nominal interest rate = 0.12 Number of compounding in a year (n) = 6 (i.e. 12 months / 2) Bi…
Q: 11. Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent…
A: Beta: Beta coefficient shows the systematic risk of the assets. In simple words, the beta…
Q: Imagine that Homer Simpson actually invested the $180,000 he earned providing Mr. Burns…
A: Given, Amount invested 5 years ago is $180,000 Rate of interest is 10%
Q: evaluating a project that will cost $541,000, but is expected to produce cash flows of $129,000 per…
A: NPV= Present value of cashinflows - Present value of cashoutflows.
Q: WHY THE FORECAST INCOME HSVE DEACLINE IN THE 2022 AND 2023 OF APPLE COMPANY
A: Companies and analysts often forecast their financial statements. Here the income statement of Apple…
Q: k W has the following returns for various states of the economy: State of the Economy Probability…
A: The mean return is expected probabilistic return considering the different state of economy and…
Q: O Fall exactly by the amount of the dividend
A: A dividend refers to the amount which is to be paid to shareholders out of the company profits,…
Q: Common stock value-Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering…
A: Given, Dividend paid last year is $1.90 required return is 16%
Question15
Construct a
Step by step
Solved in 3 steps with 2 images
- Chapter 16: Depreciation Methods Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The expected life is 30 years with a salvage value of 10% of the purchase price. For classical straight-line depreciation determine the first cost, salvage value, annual depreciation amounts and book value after 20 years?Use the following data: Asset cost $120,000 Expected life 4 years Estimated salvage value $12,000 Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be Question 12 options: $28,000. $21,600. $30,000. $48,600.Economics Equipment having a first cost of $158,000, a life of 10 years, and a salvage value of $23,000. What is its book value after 6 years using the MACRS depreciation method? O $111,405.80 O $46,594.20 O $62,811.50 O $95,188.50
- An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,0004 Construct the annual depreciation charge of an equipment purchased at a cost of P7,535,000 using double-dedining balance method if the estimated useful life is 10 years. determine also the estimated scrap value.Asset Cost $56,000 Salvage value 1,000 Life 10 years Depreciation method Straight Line What is the depreciation in year 3? What would the depreciation in year 4 be if at the beginning of the year we think that the total asset life will be only 8 years instead of 10 years?
- Problem 1: The initial cost of a paint sand mill, including its installation is P 800,000. The depreciable life of this machine is 10 years with an estimated salvage value of P 50,000. Using DBM, 1. Compute the annual depreciation charge. 2. Compute the total depreciation after 6 years. 3. Compute the book value after 6 years.How much annual depreciation expense would be recognized for a truck that originally cost $30,000 and has an estimated useful life of 5 years with a $5,000 salvage value? a. $5,000 b. $10,000 c. $7,000 d. $3,333 e. $6,000An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What is its depreciation expense if the company uses straight-line depreciation? Group of answer choices $200,000 $160,000 $20,000 $16,000
- Question 12 Use the straight line method to find the annual depreciation for a car that costs $18,000, has an expected life of 4 years and has a salvage value of $2,000.Purchase 250,000 Salvage 25,000 Time 3 years and one month By using straight-line find the Depreciation? The answer should be equal= 138,75012.2 Muddy Fields Earthmoving can purchase a bull- dozer for $30,000. After 7 years of use, the bull- dozer should have a salvage value of $5000. (1) Under MACRS, what depreciation is claimed in year 3? Under the straight-line (pre-1981) method, what depreciation is claimed in year 3? Under the SOYD (pre-1981) method, what depreciation is claimed in year 3?
