The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-12,900 1 $4,100 2 $8,100 Do not enter dollar signs or commas in the input boxes. Use the negative sign where appropriate. Round the factor to 4 decimal places and the NPV to the nearest whole number. Assume the required rate of return is 9%. Determine the net present value of this asset. Year Net Cash Flow Factor Net Present Value $-12,900 0 1 2 Total $4,100 $8,100 $ EA 49
Q: 9.5A The following is the trial balance of T Owen as at 31 March 20X9. Draw up a set of financial…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: What stage (or stages) of the budget process is New York City currently in?
A: Currently, December is going on. The steps involve a stage of November and the next stage to…
Q: The Bank of Canada (BOC) operating bands for the overnight rate is at 1 %: The Bank Rate, (The rate…
A: The correct Answer is : Decrease the Bank Rate
Q: 2. Applications of green, lean manufacturing techniques coupled with value stream mapping can make…
A: Please fallow the answer below: Solution : Use the trial-and-error procedure based on a PW…
Q: 16. A medical clinic recorded cash received for services rendered. The effect of this transaction in…
A: Accounting equation is the equation which shows that all the assets are equal to the liabilities and…
Q: Jamal, Kareem, Rashid and Associates are in the process of evaluating its new client services for…
A: The term "operating income" refers to the money that remains after all operational expenditures and…
Q: Rainbow Paints operates a chain of retail paint stores. Although the paint is sold under the Rainbow…
A: Contribution margin means the ratio of contribution to sales. It is the ratio which is determined to…
Q: the same total future cash inflows. The schedule of estimated cash receipts for each investment…
A: The question has asked to find out the correct option from the given options, and, compute the net…
Q: X8. The bonds were purchased at 100 plus accrued interest. Interest is paid semi-annually on 30 June…
A: In the present case accounting to investment in bond has been discussed, how to record the different…
Q: Dexter Industries purchased packaging equipment on January 8 for $393,800. The equipment was…
A: Depreciation is the non-cash expense which is reported in the income statement. It is charged on the…
Q: Last year, Thurco Corporation had revenue of $120,000 and expenses of $70,000. If Thurco had…
A: Margin: The difference between the total sales and the total expenses is called the margin. Margin…
Q: Required: 1-a. Compute the amount of 2021 dividends, in total, that would be payable to each class…
A: In the case of cumulative preferred stock, dividends in arrears will be paid in priority over the…
Q: 17. The Nameless Co. uses process costing and has the following information: Materials 1,000 Units…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: XYZ Corporation had the following financial data for the past year's operations in 2020: Market…
A: PRICE EARNING RATIO Price Earning Ratio indicates the number of times the earning per share is…
Q: When Mookie The Beagle Concierge started stocking Mookie The Beagle Concierge branded inventory. Cy…
A: Prepaid expenses It is the future expense that are paid in advance, such as rent or insurance. On…
Q: 9.6A F Brown drew up the following trial balance as at 30 September 20X8. You are to draft the…
A: TRADING & PROFIT & LOSS ACCOUNT Trading & Profit & Loss Account gives the…
Q: Sandhill Ltd. reported the following financial results: Profit was $440,000 in 2023, $409,200 in…
A: HORIZONTAL ANALYSIS Horizontal analysis is the comparison of historical financial information over…
Q: Max and Annie are roommates sharing an apartment. Although they know each other well, they have…
A: The resident confirmed that the IRS dishonorably discovered his touching down information besides…
Q: Complete this question by entering your answers in the tabs below. Income Statement Reason for…
A:
Q: 13. (10.04)) An analysis of accounts receivable Amoniz!! based on past experience indicated that the…
A: Bad debt expense = Amount receivable ×Percent uncollectible
Q: Ma4. Payroll tax liabilities include? A. Federal and state income taxes withheld, FICA, and…
A: Correct option is B
Q: The customer touch point that touches call center data, wireless data, and social networks is…
A: Every business has the aim of making the products and to sell and in return make an impact over the…
Q: Given the following, calculate: Cost of goods available for sale, the ending inventory at retail,…
A: The gross profit is calculated as excess of sales revenue over cost of goods sold. The retail price…
Q: on January 18th 2021 Maureen purchased a put option for $600 the option expired on August the 2nd 20…
A: Put options gives you the opportunity to sell the stock on the expiration of period but there is no…
Q: A new machine tool is being purchased for $260,000 and is expected to have a $50,000 salvage value…
A: a) Straight line depreciation is calculated by original cost less depreciation divided by useful…
Q: Which of the following types of employee benefits are not covered by AASB 119/IAS 19?
A: The correct answer is: (D) Share- based payments. Because AASB 119/AS 19 are related to employee…
Q: With the aid of examples, explain the difference between a limited assurance review and the audit of…
A: Answer:- Audit:- To ensure that all departments are using a documented system of documenting…
Q: 12-07 The comparative costs of wooden and steel penstocks for a hydro-electric power plant are as…
A: A fund maintained to pay off future liabilities is known as a sinking fund. It helps in reducing the…
Q: Ma3 The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method…
A: When a company liquidates its stock, it sells its newest stock last. When a company uses the…
Q: A random variable that can assume only a finite number of values is referred to as a(n)
A: The correct answer is: (D) Discrete random variable Yes, this is true. A Discrete random variable…
Q: Adams Air is a large airline company that pays a customer relations representative $16,425 per…
A: - Payment to customer relations representative: $16,425 per month - Expectation to process total…
Q: Cove's Cakes is a local bakery. Price and cost information follows: Price per cake Variable cost per…
A: A variable cost is one that changes depending on how much is produced or sold by the company.…
Q: The total profit P(x) (in thousands of dollars) from the sale of x hundred thousand automobile tires…
A: Profit equation = P(x) p(x) = - x3 + 12x2 + 99x -200 x >= 5 Therefore, the value of x will be…
Q: Audio City, Incorporated, is developing its annual financial statements at December 31. The…
A: A financial statement called a cash flow statement provides comprehensive data on all of the cash…
Q: For both the current year and one year ago, compute the following ratios: 1. Return on equity. 2.…
A: RETURN ON EQUTY = Net Income / Shareholder Equity FOR CURRENT YEAR Net Income = $ 30,510…
Q: ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the…
A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…
Q: income statements and balance sneets Net sales Cost of goods sold Gross profit ual Gaming Systems…
A: Lets understand the basics. Debt to equity ratio indicates how much total liabilities are there in…
Q: 3) Sally purchased 100 shares of Intel in her IRA on January 4, 2018 for $95 per share. She…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: (1) Debt and equity ratios. (2-a) Compute debt-to-equity ratio for the current year and one year…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Year 1 2 6 7 8 9 10 Investment $ 31,000 $ 4,000 Cash Inflow $ 2,000 $4,000 $ 8,000 $ 9,000 $ 12,000…
A: The duration required to recoup the cost of an investment is referred to as the payback period. It…
Q: 15. Consider the following statements: 1. "In some cases, a "favorable" variance can be worse than…
A: 15.) Considering both the statements : I. "In some cases, a "favorable" variance can be worse than…
Q: CDE7. From the following, prepare a schedule of accounts receivable for AVE Co. for May 31, 2023:…
A: Solution: Preparation of Schedule of Account receivable of AVE Co. May, 31 ,201X Rowe Co. $60…
Q: To stall the rot in the public sector in Ghana, more value must be placed on the work of the…
A: Yes, I agree with this assertion. Internal auditors play a vital role in ensuring that public sector…
Q: Vargas Corporation is working on its direct labor budget for the next two months. Each unit of…
A: Lets understand the basics. Management prepared budget in order to estimate future profit and loss…
Q: Ten years ago, PeeDee incurred a $400,000 mortgage to purchase his principal residence. Last year,…
A: When you buy home and after using many years you may sell home with some profit on that so in this…
Q: 2. Record the transactions, assuming Clothing Frontiers has either $1 par value or $1 stated value…
A: Issuance of Common Stock is one of the source of raising funds for any company. Common Stocks can be…
Q: 1. Record the transactions, assuming Clothing Frontiers has no-par common stock. (If no entry is…
A: Answer to Question:- ASSEMBLED JOURNAL ENTRY Serial No Account…
Q: How are companies ming Currency Cash Flows? O offset an anticipated continuous long exposure to a…
A: Operational methods or currency risk management techniques can both be used to reduce economic…
Q: Willie Waylon is a famous country and western singer. As an investment, Willie started a chain of…
A: Willie Waylon is a well-known country & western performer, which goes without saying. Willie…
Q: In 2022, Rex sold an auto for $10,000 that he had bought for his personal use in 2019 at a cost of…
A: Personal use asset are those assets which are purchased with an intention to use it personally and…
Step by step
Solved in 2 steps
- A project is being analyzed with the following set of cash flows. Calculate the internal rate of return (IRR). (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cash Year Flow 0 16,000 123 6,700 8,000 6,500 IRR %Consider two assets with the following cash flow streams:Asset A generates $4 at t=1, $3 at t=2, and $10at t=3. Asset B generates $2 at t=1, $X at t=2, and $10at t=3.Suppose X=6 and the interest rate r is constant. (a)For r=0.1, calculate the present value of the two assets. (b)Determine the set of all interest rates {r} such that asset A is more valuable than asset B. (c)Draw the present value of the assets as a function of the interest rate. (d)Suppose r=0.2.Find the value X such that the present value of asset B is 12. (e)Suppose the (one-period) interest rates are variable and given as follows: r01=0.1, r12=0.2, r23=0.3. Calculate the yield to maturity of asset A.Consider two assets with the following cash flow streams: Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $X at t=2, and $10 at t=3. Suppose X=6 and the interest rate r is constant. For r=0.1, calculate the present value of the two assets. Determine the set of all interest rates {r} such that asset A is more valuable than asset Draw the present value of the assets as a function of the interest rate. Suppose r=0.2. Find the value X such that the present value of asset B is 12. Suppose the (one-period) interest rates are variable and given as follows: r01=0.1,r12=0.2, r23=0.3. Calculate the yield to maturity of asset A. (You can use Excel or ascientific calculator to find the solution numerically.)
- The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-159,000 1 $59,000 2 $59,000 3 $59,000 4 $59,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback: Answer yearsConsider the following cash flows: Year Cash Flow 0 $32,500 123 13,300 18,400 10,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %Average Rate of Return, Cash Payback Period, Net Present Value Method for a Service Company Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $176,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $44,000. The company's minimum desired rate of return for net present value analysis is 12%. Present Value of an Annuity of $1 at Compound Interest 15% Year 6% 10% 12% 20% 1 0.943 0.909 0.893 0.870 0.833 1.736 2 1.833 1.690 1.626 1.528 2.673 2.283 2.487 2.402 2.106 4 3.465 3.170 3.037 2.855 2.589 3.605 3.353 5 4.212 3.791 2.991 3.785 4.917 4.355 4.111 3.326 3.605 7 5.582 4.868 4.564 4.160 6.210 4.968 4.487 3.837 8 5.335 6.802 5.759 5.328 4.772 4.031 6.145 5.650 5.019 10 7.360 4.192 Compute the following:
- Consider two assets with the following cash flow streams: Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $X at t=2, and $10 at t=3. Suppose X=6 and the interest rate r is constant. Suppose r=0.2. Find the value X such that the present value of asset B is 12. Suppose the (one-period) interest rates are variable and given as follows: r01=0.1,r12=0.2, r23=0.3. Calculate the yield to maturity of asset A. (You can use Excel or ascientific calculator to find the solution numerically.)Consider the following cash flows: Year Cash Flow 0 1 2 3 $33,000 13,900 17,800 11,300 Required: What is the IRR of the above set of cash flows? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of returnConsider the following cash flows: Cash Flow Year 0 -$ 33,500 1 14,500 2 17,200 3 11,900 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %
- Average Rate of Return Method, Net Present Value Method, and Analysis for a service company The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Front-End Loader Year 1 2 3 4 5 Total Year 1 2 3 4 5 6 7 Operating Income 8 9 10 $54,000 54,000 54,000 54,000 54,000 $270,000 0.943 Each project requires an investment of $600,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest 6% 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 10% Net Cash Flow 0.909 0.826 0.751 $172,000 172,000 172,000 172,000 172,000 $860,000 12% 0.893 0.797 0.756 0.712 0.658 0.683 0.636 0.572 0.621 0.567 0.497 0.564 0.507 0.513 0.467 0.424 0.386 0.452 0.404 15% 0.361 0.322 0.870 0.432 0.376 0.327 0.284 0.247 Operating Income…Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10. Cash Flow Year 0 1 2 3 4 5 6 7 Select one: a.0.245007 b.0.19667 c.0.168017 d.0.204146 e.0.274516 f.0.181262 g.0.228861 h.0.264278 -3000 3000 6000 -1000 2000 4000 -5000 8000Consider the following cash flows: Year Cash Flow 0 −$28,300 1 15,400 2 13,500 3 9,900 a. What is the profitability index for the cash flows if the relevant discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index if the discount rate is 14 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index if the discount rate is 25 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)