Question 6 (22 pts): Margin AccountAssume you sell one July '23 KC HRW contract today at $5.2875; its initial is $2,310with a maintenance of $2,100.○ Today July KC HRW settles at 528'6.What do you deposit in the margin account?。 Session 2 - July KC HRW settles at 530'2What is the gain or loss from session 2?What is the balance?Is there a margin call? If so, what is it?○ Session 3 - July KC HRW settles at 526'6What is the gain or loss from session 3?What is the balance?Is there a margin call? If so, what is it?○ Session 4 - Offset July KC HRW at 536'4What is the gain or loss from session 4?What is the balance?Is there a margin call? If so, what is it?○ Session 5 - Offset July KC HRW at 540'2Calculate the profit or loss on the trade.

To answer these questions, we need to calculate the initial margin, the maintenance margin, and the…

Answered: Question 6 (22 pts): Margin Account…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give typing answer with explanation and conclusion A small company purchased now for $120,000 will lose $300 each year for the first four years. An additional $600 in the company in the fourth year will result in a profit of $9500 each year from the fifth through the twelfth year. At the end of 12 years, the company can be sold for $135,000. a) Draw the cash flow diagram b) Determine the IRR for this project. c) Calculate the FW if MARR is 5%. d) Calculate the ERR when ε = 7%.
Economics
4.) A piece of equipment is required for a project. Consider the two options. For each option, determine the following: a. A Cash Flow Diagram b. The Present Worth for a period of ten years c. Estimated Break-Even Point I. Option 1: Initial cost to purchase is equipment is $450,000. Annual O&M costs are $1,200 per year starting at the end of the second year. Estimated annual savings for the new piece of equipment is $60,000 starting at the end of the first year. The interest rate for purchasing the equipment is 6%. The salvage value is expected to be $110,000 at the end of 8 years. II. Option 2: Leasing the new piece of equipment would cost $45,000 per year. Annual O&M costs are $1,800 per year starting at the end of the second year. Estimated annual savings for the new piece of equipment is $55,000 starting at the end of the first year. The interest rate for leasing the equipment is 6%. A credit of $4,000 is expected beginning at the fourth year for leasing the equipment.
Problem 01-10 (algo) An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 8 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $217859.8 b. Economic profits. $68081.20
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Buildings and equipment, net Accounts payable Common shares Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June $50,000 $60,000 $72,000 $ 8,000 20,000 36,000 120,000 21,750 150,000 12,250 July $90,000 $48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other one-half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows:…
Subject : Engineering Economics Please write handwritten Answer
John was a high school teacher earning $ 80,000 per year. He quit his job to start his own business in pizza catering. In order to learn how to run the pizza catering business, John enrolled in a TAFE to acquire catering skills. John's course was for 3 months. John had to pay $2,000 as tuition for the 3 months. After the training, John withdrew $110,000 from his savings account. He had been earning 5 percent interest per year for this account. He also borrowed $50,000.00 from his friend whom he pays 6 percent interest per year. Further, to start the business John used his own premises. He was receiving $12,000 from rent per year. Finally, to start the business John uses $50,000 he had been given by his father to go on holiday to USA. John's first year of business can be summarised as follows: Item Amount $ 400,000 190,000 55,000 50,000 75,000 60,000 10,000 Revenue- Pizza Section Revenue- Beverages Section 2 Cashiers (wages per worker) Pizza ingredients Manager 3 Pizza bakers (wages per…
XYZ Inc is looking at a project to manufacture widgets. Assume we have the following data: • The initial cost of the project is $1,080,000. • The project is expected to last 7 years, at which time the project will be abandon. • Assume each widget will cost $8.00 each to produce and the selling price will be $12.00. Production fixed costs are expected to be $248,400 annually. • The company has computed that the PVCCATS associated with this project will be $237,600. Also, the company uses a discount rate of 9% for capital projects and XYZ pays tax at a rate of 10%. XYZ is unsure as to how many widgets they will sell annually. The marketing department has provided that the expected number of units sold annually, N is E(N) = 128,000 units with a standard deviation of o= = 21,000 units. (a) Compute the expected NPV, E(NPV) of this project. 数字 (b) Compute the standard deviation of the NPV of this project. 数字 (c) Compute the NPV breakeven point of this project. 数字 units. (d) Based on the…

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