what happens on the CCA schedule?
Q: You are going to make a portfolio consisting of 50 % of Bank of America Stock and 50 % of…
A: StateProbability of StateBOA returnsCaterpillars returnsBoom80%34%39%Bust20%-3%-2%Weight of…
Q: What does liquidity measure? Explain the trade-off a firm faces between high liquidity and low…
A: Liquidity means availability of cash and cash equivalents (for example commercial paper, Treasury…
Q: ently uses a six-year-old molding machine to manufacture silver picture frames. The company paid…
A: NPV is time value based method of capital budgeting and can be found as the difference in present…
Q: ere’s an example of how breakpoint discounts on sales commissions for mutual fund investors work:…
A: In mutual funds shares are sold at NAV, NAV is the net asset value and is the minimum share price to…
Q: (Compounding using a calculator and annuities due) Imagine that Homer Simpson actually invested…
A: Amount Invested 7 Year ago = pv = $170,000Time = t = 7 + 5 = 12Interest Rate = r = 14%Number of…
Q: You bought shares of stock from Tesla, Target, and Toyota. You feel like every year in the future…
A: The expected return for each of the stocks along with probabilities will be found, and then weights…
Q: b. As the table above shows, the plant is carried on Androscoggin's books at $48.68 million.…
A: A financial indicator is Economic Value Added. EVA indicates whether a business is generating or…
Q: Book value and taxes on sale of assets Troy Industries purchased a new machine 5 year(s) ago for…
A: Depreciation is done using the Modified Accelerated Cost Recovery System and through depreciation…
Q: nd Exchange Rates [LO2] Suppose the current exchange rate for the Polish zloty is Z 3.91. The…
A: Purchasing power parity is defined as the metric, which is used by macro-economic analysts to…
Q: Apex Fabricating wants to accumulate $801,000 for an expansion expected to begin in four years. If…
A: Accumulated expenses (FV) = $801,000Rate = 6.80% (compounded monthly)Number of years = 4 years
Q: Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms.…
A: a. Freed-up fund= daily collections * days speed up + daily disbursements * days delayed…
Q: Pendleton Products has a project requiring an initial cash investment of $3,100. The project is…
A: Discounted Payback Period refers to the period or duration within which the company is able to…
Q: Holmes Manufacturing is considering a new machine that costs $290,000 and would / reduce pretax…
A: Honor codeAs per the Q&A guidelines, if multiple subparts are asked at once then the answer for…
Q: Analyze the following statement: Modernize the equipment without restructuring the line. This would…
A: The proposal suggests modernizing equipment on the company's "oldest" production line to address…
Q: is a company that is only an all equity firm. In the near future, the company plans to offer 12-year…
A: WACC is the cost of capital of capital of the company and is the minimum required rate of return for…
Q: A put option in finance allows you to sell a share of stock at a given price in the future. There…
A: Put options are a type of financial derivative that provide the holder the right, but not the…
Q: Case 1: Assume you are evaluating two mutually exclusive projects,the cash flows of which appear…
A: Payback period (PBP) refers to the period or duration within which the company is able to recover…
Q: payoff matrix
A: Portfolio weights: P1 = 1P2 = ?Payoff matrix (unchanged):
Q: ch month, what type of interest you need to ensure that you have enough money? 4. You…
A: Value of money changes with time and is not constant and money today will not be same money tomorrow…
Q: e present value of
A: Answer:To calculate the present value of a bond, we can use the…
Q: Current Attempt in Progress Fink Co. is interested in purchasing a new business vehicle. The vehicle…
A: Vehicle cost = $50,000Revenue = $20,000Salvage value = $5,000MARR = 8%Tax rate = 21%
Q: Required information [The following information applies to the questions displayed below.] Following…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: You must evaluate the purchase of a proposed Spectrometer for R&D department. The purchase Price of…
A: Operating Cash flow is the amount which is earned by the investor from the project. It is the net…
Q: You want to create a portfolio equally as risky as the market, and you have $2,200,000 to invest…
A: Variables in the question:Investible amount=$2200000 AssetInvestmentBetaStock A $…
Q: a. What is the value of the unlevered project (VU)? b. What is the present value of the project…
A: Unlevered value and levered value are two concepts often used in finance and corporate finance to…
Q: What is a par value of a bond? *I am not satisfy give downvote The amount borrowed by the issuer of…
A: The par value of a bond, also known as face value or nominal value, represents the principal amount…
Q: Hinds Enterprises issued bonds at a premium. They traditionally use the effective interest method of…
A: Interest expense :Interest expense = Interest payment - Premium amortizedunder straight line method…
Q: Maggie's Resorts was wondering how to use capital budgeting to decide if their $7,952,000 expansion…
A: Annual percentage return refers to the return that is being earned over the initial investment…
Q: uppose that you buy a 3-year coupon bond which sells at par. Its nominal value is £1,000 and its…
A: Bonds are one kind of investment in which interest is paid each period and par value of the bond is…
Q: 1. Compute the annual net cash inflow from the project. $630,000 2. Complete the…
A: NPV : Net Present Value (NPV) is a financial metric that measures the profitability of an investment…
Q: Consider the following six months of returns for two stocks and a portfolio of those two stocks:…
A:
Q: Alpha and Beta Companies can borrow for a five - year term at the following rates: Alpha Beta…
A: All-in-cost swap refers to the total cost paid by the parties participating in the swap arrangement.…
Q: Remember, the expected value of a probability distribution is a statistical measure of the average…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: Garcìa Co. can invest in one of two alternative projects. Project Y requires a $360,000 initial…
A: ParticularsProject YProject ZIncome70000130000Add: Depreciation90000120000Annual cash flow…
Q: Calculate your rate of return.
A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…
Q: Amazon.com Incorporated reported the following stock price at the beginning of each year since 2012.…
A: To develop a simple price index taking base year 2012. We need to take stock prices of 2012 as…
Q: FFC Portfolio Average monthly returns are a follows: Factor PortfolioAverage monthly returns Mkt-r_f…
A: To calculate expected return or cost of capital, CAPM is widely used according to which Re = Rf +…
Q: The investor plans to invest 2000 UAH and chooses between two investment options: one-year bond that…
A: The correct or actual interest rate gained or paid on an investment or loan over a given period of…
Q: n investor bought 80 shares of stock at a cost of $11 per share. He held the stock for 14 years and…
A: When money is invested in the stock market the return can be in the form of dividend and increase in…
Q: Leasing is often referred to as off-balance-sheet financing because of the way that the transaction…
A: A lease is an arrangement whereby the lease taker owns the assets' usage from the actual asset owner…
Q: ompare the monthly payments and total loan costs for the following pairs of loan options. Assume…
A: Loans are paid by equal monthly payments that carry payment for interest and payment for the loan.
Q: Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the…
A: Where,P0 = Stock valueD0 = Current dividendg = growth rate in decimal format D0 ( 1 + g) =Expected…
Q: Tesla Inc. is thinking about acquiring Lithium Power Corp. Tesla's VP thinks that it is going to add…
A: The P/E ratio, or Price-to-Earnings ratio, is a fundamental financial measure employed to measure a…
Q: A project requires an investment of $900 and has a net present value of $300. If the internal rate…
A: NPV = $300Initial investment = $900IRR = 14%
Q: The firm’s tax rate is 35%. The price of Harry Davis’ $1000 par value, 8.5% coupon, semiannual…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have…
A: Capital Gains Growth Rate (g)= After-Tax Return - Dividend Yield*(1-Tax Rate)= 16% - 7%*(1-.40)=…
Q: options are: regression moving average weighted moving average correlation exponential smoothing
A: The objective of the question is to match the given terms with their most appropriate descriptions.
Q: Perrot Industries has $325,000 to Invest. The company is trying to decide between two alternative…
A: NPV is appropriate for assessing projects with variable cash flows over time since it considers the…
Q: How much should her contributions be?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Ang Electronics, Inc, has developed a new HD DVD. If the HD DVD is successful, the present value of…
A: Payoff in success = $33,600,000Payoff in failure = $11,600,000Probability of success = 40%…
You have equipment with a beginning UCC of $100,000. You purchased the equipment a few years ago for $140,000.
during the year, you sold ALL the equipment for 80000.
what happens on the CCA schedule?
A. $20000 terminal loss DEDUCTED FROM INCOME.
B. $20000 Recapture ADDED TO INCOME
C. $60000 Recapture ADDED TO INCOME
D. $60000 terminal loss DEDUCTED FROM INCOME
Step by step
Solved in 3 steps
- A depreciable property costing P1,400,000 with original residual value of P80,000 after 10 years, had been revalued at a replacement cost of P1,680,000 with residual value of P20,000. The age of the asset is four years when it was revalued. What is the revaluation surplus? Please answer it complete using good accounting form. Thank youA machine can be purchased for $50,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $10,000. Income Year Year 1 $3,300 Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 $8,300 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Net Income Depreciation 3,300 8,300 30,000 12,400 33,200 Year 3 $30,000 Year 4 $12,400 Net Cash Flow $ (50,000) $ Payback period = Year 5 $33,200 Cumulative Net Cash Flow (50,000) 0 0An asset owned by PT X has the following information: initial cost = $10,000, depreciation life = 5 years, and S (salvage value) = 0. Use the SL and Te = 48% methods to tabulate CFAT. Gross income minus expenses is $5000 per year. The asset has a salvage value at year 6 of $3075. Assume income and expenses have the same value up to one year after the end of their depreciation period.
- A machine can be purchased for $90,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $18,000 Income Year 1 Year 3 Year 5. $6,000 $36,000 $60,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Initial invest - Year 1 Year 2 Year 3 Year 4 Year 5 Net Income Depreciation $ Year 2 $15,000 6,000 15,000 36,000 22,500 60,000 Year 4 $22,500 Net Cash Flow $ Cumulative Net Cash Flow (90,000) $ Payback period- (90,000)Consider the following data on an asset:Cost of the asset, I $38,000Useful life. N 6 YearsSalvage value. S $0 Compute the annual depreciation allowances and the resulting book values by using the DOB method and then switching to the SL method.An income producing asset costs $6,630 and will be depreciated using 150% Declining Balance with a $896 salvage value over 13 years. What is the Book Value at the end of year 1?
- Consider an asset with a cost basis of $10,000 that has been depreciated using 100% bonus depreciation. What is the gain or loss if the asset is disposed of after 5 years of operation for (a) $7000, (b) $0, and (c) a cost of $2000?A truck was purchased for $58,000 and depreciates $6560 per year. Suppose that the vehicle is depreciated so that it holds 60% of its value from the previous year. Write an exponential function of the form =yV0bt , where V0 is the initial value and t is the number of years after purchase.6) Use linear interpolation to find the indicated value. A vehicle purchased for $ 33,000 depreciates at a rate of 10% each year. the end of each of the first five years is as follows: Year 1 2 3 4 5 Value 29,700 26,730 24,057 21,651.3 19,486.17 Find the value after 2 years and 10 months.
- Assume that Hospital X purchased equipment for $600,000 cash on April 1st (the first day of its fiscal year). This equipment has an expected life of 10 years. The salvage value is 10 percent of cost. No equipment was traded in on this purchase. 1. Compute the straight-line depreciation for this purchase. 2. Compute the double declining balance depreciation for this purchase.Please assist in solving the problem below. Thanks Bramble Corp. purchased a depreciable asset for $392000. The estimated salvage value is $26000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset?A global positioning system (GPS) receiver is purchased for $3,000. The IRS informs your company that the useful (class) life of the system is seven years. The expected market (salvage) value is $200 at the end of year seven. Solve, a. Use the straight-line method to calculate depreciation in year three. b. Use the 200% declining balance method to calculate the cumulative depreciation through year four.c. Use the MACRS method to calculate the cumulative depreciation through year five. d. What is the book value of the GPS receiver at the end of year four when straight-line depreciation is used?
