If the net working capital required is 85.1 and the difference between current assets and current liabilities is 70, then what is the contingency rate?

Q: If the cost of capital is 9% what is the present value of $694 in year 9. If the cost of capital is…

A: The present values of the same amount are equal only when the discount rate and the number of…

Q: If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A.…

A: The difference between an entity's current assets and current liabilities is its working capital.…

Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…

A: The total deficit or surplus of an asset over a specified time period, calculated as a percentage of…

Q: For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the…

A: Therefore, the IRR is 24.13%.

Q: If the value of the monetary assets at the beginning and at the end of the financial year is OMR…

A: CPP is current purchasing power of accounting, which saya that all historical cost accounts should…

Q: You are given the following data for year 1; Revenue =RM 100, Fixed Costs = RM30, Total Variable…

A: Answer: Calculation of the after-tax cash flow for the project for year 1: Formula, After-tax cash…

Q: If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A.…

A: Introduction: Working capital: Capital used for running the day to day business transactions called…

Q: If current assets are $100,000 and current liabilities are $42,000, what is the working capital?A.…

A: Working capital is the amount of capital or money needed for day to day operations of the business.…

Q: A project requires an initial investment of $170,000 and has a project profitability index of 0.350.…

A: Profitability Ratio The Profitability Index (PI) measures the ratio between the present value of…

Q: Find out the Capital maintenance under the following three bases: (a) Financial Capital Maintenance…

A: Capital refers to the net assets of the company after deduction the balance of company’s liabilities…

Q: In the Economic Order Quantity (EOQ) Theory, if CO  £20, D  24,000, EOQ  400, calculate the…

A: EOQ theory state and calculate the ideal order quantity that an organization needs to be purchased…

Q: How long will it take for an Investment of P3,500,000 to earn P1,525,250 if invested at the rate of…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Given the cash flows above and a discount rate of 5%, compute the payback period nd NPV of Project…

A: Capital budgeting means the methods used for finding the profitability of investment proposals.…

Q: If the net working capital is 73.5 and the difference between current assets and current liabilities…

A: Working capital is the capital required by a firm to run the daily operation smoothly. Working…

Q: Using the following information, and a tax rate of 35%, calculate the yearly cash flow: Sales…

A: Income before tax = Sales - Variable costs - Fixed costs - Depreciation Income before tax = $2,100 -…

Q: If the asset turnover is 1.6, the financial leverage multiplier is 2.1, the return on asset is 25%…

A: The net profit margin can be calculated by combining return on assets and asset turnover

Q: XY Co has development expenditure of $500,000. Its policy is to amortise development expenditure at…

A: Given the following information: Development Expenditure: $500,000 Amortization: 2% per annum…

Q: What is the profitability index of a project that costs $87 and returns $42 annually for 8 years if…

A: Introduction Profitability Index As the word states, PI(Profitability index measures the ratio…

Q: If a capital investment is $28,048 and equal annual cash inflows are 62,605.3, state the internal…

A: Solution: Internal rate of return factor is arrived at by dividing capital investment by annual cash…

Q: 1) What is the user cost of capital if the expected real interest rate is 5%, the price of capital…

A: Given that: Price of Capital=$15000 Interest Rate=5% Depreciation rate=25%

Q: Judson's cost of capital is 12%, what is the DISCOUNTED Payback Period for the project? Year Cash…

A: Discounted payback period is calculated by finding the present value of all the cash flows and then…

Q: The present value index for this investment is Oa. 0.95 Ob. 1.00 Oc. 1.05 Od. 1.25

A: Present Value Index (PVI) is the ratio of the net present value to the initial expenditure required…

Q: If a $300,000 investment has a project profitability index of 0.25, what is the netpresent value of…

A: Profitability Index of a project means ratio of present value of future cash flows of the project…

Q: Use an external investing rate of 12% and an external borrowing rate of 6%. Compute the rate of…

A: The given problem can be solved using MIRR function in excel. MIRR function computes rate of return…

Q: An investment costs $465 and is expected to produce cash flows of $100 at theend of Year 1, $200 at…

A: A guideline that helps an investor to decide whether investment should be made or not is term as…

Q: What is the net present value of a project with the following cash flows if the discount rate is 10…

A: The computation of NPV is as follows: Hence, the NPV is $7,403.80

Q: Given i= 15.29% compounded semi-annually and n=8, determine the following a. Gradient to uniform…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…

A: Investment Rate = 12% Borrowing Rate = 15% MARR = 14%

Q: What is the net cash inflow / outflow in net working capital?

A: We know that working capital determines the liquidity position of the business . This is used…

Q: The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is…

A: The payback period is one of the capital budgeting techniques which is only used to estimate the…

Q: How much is the return on plan assets during the year? c. 101,000 a. 51,000 b. 81,000 d. 1,000

A: Solution:- Actual Return :- An actual return refers to the actual gain or loss an investor…

Q: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is the rate of…

A: Investment Rate = 12% Borrowing Rate = 15% MARR = 14%

Q: The table below shows a comparison between three mutually exclusive alternatives. If the capital…

A: The capital budgeting is a technique that helps to analyze the profitability of the project that…

Q: that currently has 100 units of capital, and their desired level a epreciation rate is 10%, how much…

A: For a company units of capital is an essential input factor. Units of capital along with labor are…

Q: If the value of liabilities is 30000 OMR and Assets are 100000 OMR. Which of the following is the…

A: We know that the accounting equation is  Assets = Liabilities + Shareholders Equity That is we can…

Q: If the annual interest on capital investment is $2000 and annual deposit into depletion reserve is…

A: Annual net income means the profit earned after all the expenses has been deducted from sale…

Q: What is the internal rate of return of a capital investment project that has the following after-tax…

A: IRR is the rate at which NPV of the project is zero.

Q: If the cost of capital is 12%, how much should the company set aside on an annual basis II they…

A: Sinking funds are periodic payments done so that they are equivalent to future requirements of money…

Q: If the net working capital required is 85.1 and the difference between current assets and current…

A: Working capital is regarded as the amount that is used by the business for meeting their day to day…

Q: If the annual deposit into depletion reserve is $ 1000 and annual interest on capital investment is…

A: Annual Net Income  =Annual Deposit  +Interest on such deposit

Q: Consider the following investment project. Calculate the net future worth of this investment at 6%…

A: The formula to compute future worth as follows: Future value=∑tiC1+rn

Q: If the asset turnover is 1.6, the financial leverage multiplier is 2.1, the return on asset is 25%…

A: Asset turnover = Net Sales / Average Total Assets = 1.6  1/ Asset Turnover = Assets/Sales = 1/1.6…

Q: Cash of $12,000 will be received in year 6. Assuming an opportunity cost of capital of 7.2%, which…

A: Future value is the amount of to be received or paid in future by taking into account the…

Q: What is the MIRR for the project using a 12% Cost of Capital? Show in a timeline format. Year…

A: Modified Internal Rate of Return (MIRR) is a new form of Internal rate of return (IRR). It also…

Q: 63%

A: Net profit margin refers to the amount which is generated as a percentage of revenue. It…

Q: The present value of the net cash flows for Product A is $65,145 while the cost of the initial…

A: The question is based on the concept of Financial Management. Profitability index is the ratio of…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.