tax quiz 6 2

(b) In order to choose between Project A and Project B, the project planner must make a decision. The following data pertains to the projects: Project P Project Q Capital cost of asset 60,000 60,000 Profits before depreciation Project A Project B Year 1 20,000 50,000 Year 2 30,000 20,000 Year 3 40,000 5,000 Year 4 50,000 5,000 Year 5 60,000 5,000 (i) From the analysis using payback period method, which project will be more preferred? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Best production company is evaluating the project under profitability index. Initial investment is $400,000 and net present value is $1,100,000. Profitability index of the project is: а. 2.75 b. 0.36 c. 1 d. None of the above

Upvote will be given. Write the complete solutions legibly. The encircled letter is the correct answer. Solve it manually.

Suppose that a site can be developed a rental property at a cost of $500,000 with a annual NOI of $65,000. Assuming the cap rates for the building and for the land are 10% and 8% respectively. Calculate the value of the land? O $187,500 O $155,622 O $123,159 O None of the given answers O $118,687

Looking for answers, Please include all the calculations for my reference. Thanks!

​Land, a building and equipment are acquired for a lump sum of $900,000. The market values of the land, building an equipment are $500,000, $600,000 and $200,000, respectively. What is the cost  assigneed to the equipment? (Do not round to any intermediary calculations and round your final answer to the nearest dollar).  A. $0 B. $900,000 C. $200,000 D. $138,462 thnaka sfor help  appareicated

A.)Most economical offer July your you. B.)Capitalized cost of equipment B. C.)Capitalized cost of Equipment C. (Please provide detailed solution not in excel, I'm in rush I will 100% guarantee to vote it up for your effort thank you.)

(Adapted) 5. Joseph Company acquired a tract of land containing an extractable natural resource. Joseph is required by the purchase contract to restore the land to a condition suitable fo recreational use after it has extracted the natural resource Geological surveys estimate that the recoverable reserves will be 2,500,000 tons and that the land will have a value of P1,000,000 after restoration. Relevant cost information follows: P9,000,000 Land Present value of estimated restoration costs 1,500,000 What should be the depletion charge per ton of extracted material? a. P4.00 (Adapted) •b. P3.80 c. P3.60 d. P3.20

Suppose the subject's net operating income is $100,000, the direct capitalization rate of the land is 3.5%, the direct capitalization rate of the improvements is 6.0%, and the value of the improvements is $750,000. What is the overall value of the subject property (round to the nearest thousand)? A. $2,321,000 ⒸB. $2,036,000 OC. $1,571,000 OD.$1,286,000

Consider a project with the following information: Initial fixed asset investment = $515,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $47; variable costs = $29; fixed costs = $207,000; quantity sold = 102,000 units; tax rate = 21 percent.    How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)   Change in OCF/ Change in Q =?

Lopez Industries has identified the following two mutually exclusive capital investment projects:   Year Project A Project B 0 -16000 -15500 1 400 12500 2 800 8000 3 13000 800 4 14000 800   What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?

A company that decides to value a project in which it wants to enter, presents the information in Figure 1. In addition, the investment in assets for 400 (Depreciable in straight line) and sale at the end for 205 value. Tax rate of 35%. What is the NPV of the project, if the WACC is 15% A.E.

Answer the questions ASAP.

A Real Estate Investment Company (REIC) has a weighted average cost of capital at 10% and $2 million of total capital to invest. The REIC aims to earn rental income from the investment and do not intend to sell the property in the short term. Which of the following property is the most appropriate one to invest? Select one: a. Property A: 8% Cap Rate, NOI $400,000 b. Property A: 11% Cap Rate, NOI $180,000 c. Property A: 10% Cap Rate, NOI $100,000 d. Property A: 12% Cap Rate, NOI $300,000 None of the above e

need correct , well explained ,formulated answer with steps thanks

Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?

Do not give image format

Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.

Net present values for three alternative Investment projects follow. (a) If the company accepts all positive net present value Investments, which of these projects will it accept? (b) If the company can choose only one project, which will it choose? Potential Projects Net present value Project A $1,400 Project B $(12,100) Project C $15,000 (a) If the company accepts all positive net present value investments, which of these projects will it accept? (b) If the company can choose only one project, which will it choose?

please answer this thank you!

Correct answers are provided. Need help on how to get solutions for 9D-9G

Consider a three-year project with the following information: initial fixed asset investment = $710,000; straight-line depreciation to zero over the 5-year life; zero salvage value; price = $39.39; variable costs = $28.31; fixed costs = $332,000; quantity sold = 87,000 units; tax rate = 24 percent. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) AOCF/AQ

In the development of a publicly owned, commercial waterfront area, three possible independent plans are being considered. Their costs and estimated benefits are given in the table to the right. a. Which plan(s) should be adopted, if any, if the controlling board wishes to invest any amount required, provided that the B-C ratio on the required investment is at least 1.0? b. Suppose that 5% of the costs of each plan are reclassified as disbenefits. What percentage change in the B-C ratio of each plan results from the reclassification? c. Comment on why the rank-orderings in (a) are unaffected by the change in (b). a. Perform the B-C analysis. Fill-in the table below. (Round to four decimal places.) Plan A B-C ratio Is the alternative acceptable? Plan A B с PW ($000s) Costs Benefits $125,000 $139,000 107.000 152,000 137,000 104,000

Alternative Methods I and II are proposed for a security operation. The following is comparative information: Determine which is the better alternative based on an after-tax annual cost analysis with an effective income tax rate of 40% and an after-tax MARR of 15%, assuming the following methods of depreciation: Solve, a. SL b. MACRS.