Perez Company is considering an investment of $30,485 that provides net cash flows of $9,000 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1 and EVA of $1) (Use appropriate
Q: An S corporation distributes land with a basis of $60,000 and a FMV of $90,000 to its sole…
A: Tax is a liability that is calculated on the income earned by the company or individual. It is paid…
Q: Highland company provided the following information on December 31, 2018: Cash 2,000,000 Trade and…
A: Statement of Financial position includes: Assets accounts Liabilities accounts Equity accounts As…
Q: All of the following functions are normally found within an organization's sales/collection except:…
A: An entity involved in sale of merchandise has to keep a track of multiple functions such as receipt…
Q: Assume the Cont
A: Assets are resources that are controlled which results from prior transactions that are expected to…
Q: he total contract price of the project is P 1,200,000. This was constructed as follows: Year…
A: In Contract Accounting, Profit is recognized every year according to the degree of completion of the…
Q: You are auditing the balance sheet of the Ballares Company on December 31, 2004, which has the…
A: Shares- The shares are the company's financial assets. The value of the shares fluctuates with the…
Q: On March 2015, Agency A is taking legal action against its competitor for patent infringement…
A: Contingent assets and liabilities are the ones that have the uncertainty to be received or raised…
Q: What is Owner’s Capital or Equity Financing? Asap
A: Equity financing refers to the practice of raising funds by selling stock. Companies raise funds for…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Operating leverage is the measure of a company's fixed costs compared to their total costs. Fixed…
Q: uction permi
A: The consolidated balances of various balance sheet accounts as,
Q: PV of DBO – Jan. 1, 20x1 2,000,000 FVPA– Jan.1, 20x1 1,800,000 PV of DBO – Dec. 31, 20x1 2,900,000…
A: An cost is the decrease in asset value as it is used to produce income. If the asset will be…
Q: uses 34,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are:…
A: Introduction:- The following basic information as follows under:- Currently total cost to make the…
Q: Task 4: XYZ corporation had net cash flows from operating activities of $90.000 in last year. During…
A: Cash flow statement is a statement which is prepared to find out the cash comes in and goes out , by…
Q: On March 2015, Agency A is taking legal action against its competitor for patent infringement…
A: Answer to (1) As per provisions of IAS 37, Contingent Asset : An entity can disclose in notes to…
Q: Hufflepuff Corporation (a C corporation) had current and accumulated E&LP of $500.000 as of December…
A: The answer is stated below:
Q: 2022, its inventory records for one brand of designer jeans were as follows: Beginning Inventory…
A: Under FIFO (First in first out) method goods purchased first are sold first.
Q: Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports…
A: In the given question the Relevant cost to Make should be compared with Relevant cost to Buy. If…
Q: Spiller Corporation plans to issue 12%, 6-year, $560,000 par value bonds payable that pay interest…
A: Total cash proceeds = Present value of interest (annuity) + Present value of maturity value
Q: 3) The following payroll information relates to Jones Company. Fica Rate 6.2% on the first $117,000…
A: Introduction After payroll register is prepared, entry for totals of each payroll period is made to…
Q: Q1.The level of detail in a model should not depend on the application. For example, for regular…
A: Here discuss about the details of the model should be depends upon the application as well. This…
Q: Dave Krug fin
A: Annuity is used in case of a future annuity – suppose an equal sum of money is invested in the bank…
Q: The Wildcat Oil Company is trying to decide whether to lease or buy a new computer- assisted…
A: Cost of Equipment = $9100000Life (In years) = 5Residual value = Salvage value = $950,000Tax rate =…
Q: 1-Please construct a profit and loss statement for " Comfortable Shoes Store" for the year 2020 with…
A: The compny is having net loss of $1500. The profit & loss statement is given below
Q: JenStar's blu-ray disc segment was held for sale at year end. There is a formal plan in place to…
A: It is the income left after incurring all expenditure from revenue. Net income is determined by…
Q: GMPK LLP, a firm that provides financial services, has suffered financially due to a marked loss of…
A: A partnership is an agreement where two or more individuals mutually agree to operate and manage a…
Q: The bank statement for Betty Company indicates a balance of $20,000 on September 30, 2021. After the…
A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Calculation of Number of units to be sold next year Budgeted Unit sales for next year = 20,000 units…
Q: 1. Managerial accountants have the responsibility to: а. accept gifts or hospitality that may allow…
A: Answer 1 : d Answer 2 : b Answer 3 : b
Q: Mitus Company needs 20,000 special buckles for a backpack that it designs and manufactures. If the…
A: When there are two alternatives of either making or purchasing the product from outside, then total…
Q: Roundta respect to cost of goods sold for the current year: any reported the following information…
A:
Q: Question 2 The following information was extracted from the books of Mvula Ltd ( newly formed…
A: A cash budget specifies the expected sources and uses of funds in the future. A cash budget is a…
Q: TOPIC: Contributed Capital (Issuance of Shares, Reacquisition, Reissuance, Retirement, Donation,…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 1. The Villa Pawnshop charges 24% simple interest on the loan of all items pawned to them. If Rose…
A: Introduction: When you payment on a simple interest loan, the first portion of the payment is…
Q: 1.) Albert, Benny and Camposo planned a business venture where Albert will contribute Benny…
A: Partnership business is the one where two or more persons join hands to share profit and losses by…
Q: Example one The information below has been extracted from the recently published accounts of Gabby…
A: It is the analysis of a company's performance under different dimensions such as profitability,…
Q: Briefly, explain the difference between the torts of Wrongful Interference with a Contractual…
A: Answer:- Tort meaning:- Tort is a kind of civil wrong that causes the claimant to incur loss or…
Q: rts. Relevant revenues: None. Sunk costs: S4,000 for software. Opportunity costs: $4,000. rts.…
A: Relevant cost are those cost that would impact decision making and would be affected by it Sunk…
Q: Directions: Prepare a schedule of cost of goods sold for the three-month period and a statement of…
A: Note: It is assumed that Purchase Returns and Allowances is 4,900 not 4,9000 The process of…
Q: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…
A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…
Q: a. Mr. Smith, the financial controller of LabAid, is convinced that the step-down method allocates…
A:
Q: Consider each of the independent transactions below: a) The University of Belize traded an older…
A: In the case of an exchange of assets for obtaining a new asset, the gain or loss from the exchange…
Q: ry 1, 2020, the Pacita Corp equity securities for P2,000,000. ssion, taxes and other transacti…
A: Marketable securities are valued at fair value at the end of the accounting year . The difference…
Q: This tax year, Jack and Jill file married filing jointly. Their modified taxable income is $375,000.…
A: Introduction: Earned and unearned income are both taxable. Unearned income that is taxed includes…
Q: urred. These two products can be sold as is or processed further. Further processing of either…
A: To decide whether a product should be processed further or sold as it is , the incremental sale…
Q: At the end of an accounting period, a company's total assets equaled $505,000, and owner's equity…
A: Solution: As per basic accounting equation: Total Assets = Liabilities + Owner's Equity Total Assets…
Q: 1. Assuming that net pay was directly deposited into the employee's bank accounts, prepare the…
A: Journal entry is made at the time when a business transaction or any other accruals has been…
Q: How does accounting for foreign inflation differ from accounting for domestic inflation?
A: Inflation accounting is the process of adjusting financial accounts during inflationary periods. The…
Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…
A: Solution: Gross PP &E = Cost of purchase of PPE Accumulated depreciation = Depreciation…
Q: S Corporation has a current ratio of 3.4 and an acid-test ratio of 2.6. The corporation's current…
A: The current ratio is calculated as current assets divided by current liabilities. The acid test…
Q: Test Company produces two products from a common input: Product A and Product B. One batch of the…
A: Solution... Sales price of product B at split off point = $1500 After further processing = $400…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- How I resolve this problems please give me the detail A firm has the following investment alternatives: Year A B C 1 $400 $--- $---- 2 400 400 ---- 3 400 800 ---- 4 400 800 1,800 Each investment cost of capital is 10 percent a. What is each investment's internal rate of return? b. Should the firm make any of theses investment? C. What is each investemtn's net present value? d. Should the firm make any of these investmentSuppose the MARR is 12%. Use the following table to answer the question-The IRR on the CMS Investment is FMS Initial Investment Annual Revenue Useful Life (Years) A. 17.0 % - 18.0% OB. 15.0 % - 16.0% OC. 11.0% - 12.0% O D.0.5% -1.0% O E.20.0% -21.0% CMS $20,000 6,688 $29,000 9,102.5ו Comparing Investment Criteria. onsiuer uie 1onOwing two inutuany exclusive projects: Cash Flow (B) 1TT Year Cash Flow (A) S415,000 -$3,500 49,000 1,920 57.000 1,390 74,000 1,420 530,000 1,050 4 Whichever project you choose, if any, you require a 13 percent return on your investment. a. If you apply the payback criterion, which investment will you choose? Why? b. If you apply the NPV criterion, which investment will you choose? Why? 8If you apply the IRR criterion, which investment will you choose? Why2 d. If you apply the profitability index criterion, which investment will you choose? Why? e. Based on your answers in (a) through (d), which project will you finally choose? Why?
- Using the below informtion answer: 5.1 Payback Period of Project Tan (expressed in years, months and days). 5.2 Net Present Value of Project Tan.5.3 Accounting Rate of Return on average investment of Project Tan (expressed to two decimal places). INFORMATIONThe management of Mastiff Enterprises has a choice between two projects viz. Project Cos and Project Tan, each ofwhich requires an initial investment of R2 500 000. The following information is presented to you: PROJECT COS PROJECT TANNet Profit Net ProfitYear R1 130 000 80 0002 130 000 180 0003 130 000 120 0004 130 000 220 0005 130 000 50 000A scrap value of R100 000 is expected for Project Tan only. The required rate of return is 15%. Depreciation is calculatedusing the straight-line method.The management of Revco Products is exploring four different investment opportunities. Information onthe four projects under study follows:Project Number1 2 3 4Investment required ....................... $(270,000) $(450,000) $(360,000) $(480,000)Present value of cashinfl ows at a 10%discount rate .............................. 336,140 522,970 433,400 567,270Net present value .......................... $ 66,140 $ 72,970 $ 73,400 $ 87,270Life of the project ........................... 6 years 3 years 12 years 6 yearsInternal rate of return ..................... 18% 19% 14% 16%The company’s required rate of return is 10%; thus, a 10% discount rate has been used in the present valuecomputations above. Limited funds are available for investment, so the company can’t accept all of theavailable projects.Required:1. Compute the project profitability index for each investment project.2. Rank the four projects according to preference, in terms of:a. Net present valueb. Project profitability…ch A project with an initial investment of $88000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is O $71025. O $98560. O $88000. O $109032. Save for Later O Et V B 21 E 7 Attempts: 0 of 1 used Submit Answer F12
- Problem 2: The amount of an investment is represented by f(t) = 4186.58(1.025)*. Algebraically, determine when (in compounding periods t) the investment will reach $1,000,000.Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $130,900. Project 2 requires an initial investment of $97,200. Assume the company requires a 10% rate of return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income Years 1-7 Project 1 Net present value Years 1-5 Compute the net present value of each potential investment. Use 7 years for Project 1 and 5 years for Project 2. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Project 2 Present Value Net Cash Flows x of Annuity at 10% Present Value Net Cash Flows x of Annuity at 10% = = Project 1 $ 105,300 70, 200…Which of the following statement is true? * IRR and discount rate all have the same meaning.... If BCR is less than zero, an investment to a conservation project is worthwhile.... Both of them are true
- Ue 45%. What was the llates (including total sales) were exactly correct Apense ratio, which actually turned out to be 45%. What was the excop project's actual simple rate of return? EXERCISE 13-1 Payback Method LO13-1 The management of Unter Corporation, an architectural design firm, is considering an investment connect Graw with the following cash flows: Year Investment Cash Inflow 1 ... $15,000 $8,000 $1,000 $2,000 2 ... 3.. $2,500 $4,000 $5,000 $6,000 $5,000 $4,000 5.. 6.. 7 .. 8 .. $3,000 9... $2,000 10 ... Required: 1. Determine the payback period of the investment. - Would the payback period be affected if the cash inflow in the last year were several times as large? EXERCISE 13-2 Net Present Value Analysis LO13-2 the purchase of a $27,000 machine thatCalculate the HPR of the following investment, entered as a percentage (Example: if your answer is 14.5%, enter 14.5 and not 0.145) Period Cashflow 0 -14100 1 3300 2 3300 3 3100 4 2800For the four revenue alternatives below, use the ROR method results to answer the question below Alternative A B с D Initial Investment, $ -60,000 -90,000 -140,000 -190,000 Alternative D Overall ROR, Ai*% When Compared with Alternative ¡*% A B с 11.7 22.2 17.9 15.8 43.3 22.5 17.8 10.0 10.0 Problem 08.034.c- Choose from more than two alternatives based on incremental ROR analysis ✓should be selected. 10.0 Which one should be selected if the MARR is 10% per year and the alternatives are mutually exclusive?