tax quiz 6 2

Zenith Investment Company is considering the purchase of an office property. It has done an extensive market analysis and has estimated that based on current market supply or demand relationships, rents, and its estimate of operating expenses, annual NO/ will be as follows: Year 1 12345678 ΝΟΙ $ 1,105,000 1,105,000 1,105,000 1,235,000 1,285,000 1,335,000 1,374,000 1,414,170 A market that is currently oversupplied is expected to result in cash flows remaining flat for the next three years at $1,105,000. During years 4, 5, and 6, market rents are expected to be higher. It is further expected that beginning in year 7 and every year thereafter, NOI will tend to reflect a stable, balanced market and should grow at 3 percent per year indefinitely. Zenith believes that investors should earn a 12 percent return (r) on an investment of this kind. Required: a. Assuming that the investment is expected to produce NO/ in years 1 to 8 and is expected to be owned for seven years and then sold, what…

(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

A developer plans to purchase a vacant lot and build apartment units for which represent the highest and best use of the land. Assuming the anticipated NOI for the projected units for $850,000, the market-derived cap rates for the building and land are 11% and 9% respectively, and the projected value of the proposed building is 5,900,000. Based on the land residual technique, the land value would be. a. $2,166,667 b. $2,233,333 c. $2,600,000 d. $2,900,000 The answer falls outside of the range provided. not satisfied from previous answer need well explained , computated and formulated answer

Kindly help me with general accounting question

NEED the correct EXCEL INPUT, not just the number answer, please provide the excel code to get the answer from the image

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.) find the change in OCF/Change in Q

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 =?

PC Shopping Network may upgrade its modem pool. It last upgraded 1 year ago, when it spent $114 million on equipment with an assumed life of 4 years and an assumed salvage value of $22 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $86 million. A new modem pool can be installed today for $156 million. This will have a 3-year life, and will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $15 million per year and decrease operating costs by $12 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 35% and the discount rate for projects of this sort is 13%. (Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13. Use minus sign to enter cash outflows, if any.) a. What is the net cash flow at time 0 if the old equipment is replaced? (Do not round intermediate…

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

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.

What is the NPV of project B? Which project should comfy home choose?

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 as follows (shown): Solve, 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 10% 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).

How do I solve the chart?

In a cost center, the manager has responsibility and authority for making decisions that affect a. costs b. investments in assets c. both costs and revenues d. revenues   Keating Co. is considering disposing of equipment with a cost of $68,000 and accumulated depreciation of $47,600. Keating Co. can sell the equipment through a broker for $27,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $46,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is a. $11,160 b. $7,812 c. $16,740 d. $13,392   If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is the contribution margin ratio? a. 64% b. 36% c. 68% d. 32%

Apply WACC in IRR.   Leeward Sailboats is reviewing the following new boat​ line:   Category T0 T1 T2 T3   Investment −​$9,116,807           Net working capital change −​$636,000       ​$636,000   Operating cash flow     ​$2,930,000 ​$3,413,000 ​$4,156,000   Salvage         ​$597,000     At what adjusted WACCs will the company accept this​ project?   Hint​: Find the IRR of the​ project, and use it as the maximum adjusted WACC for accepting the project. What is the IRR of the​ project?  ​(Round to two decimal​ places.)

::From the independent projects/alternatives shown below, the one(s) that should NOT be selected is (are) Alternative PW, $ A - 25,000 В -12,000 C 10,000 D 15,000 D and A A and B C and D C and B

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You purchase a multifamily property for $4,500,000. You commission a cost segregation study to determine how the cost should be allocated and determine the following:\\n\\nLand: 30%\\n\\nResidential Improvements: 55%\\n\\nLand Improvements: 10%\\n\\nFurniture, Fixtures & Equipment: 5%\\n\\nWhat is your projected depreciation expense associated with this property? (Round your answer to the nearest dollar)\\nPlease provide an excel file with labels and formulas, Thank you

What is the site value? General Accounting question

Calculate the NPV of an asset replacement given the following information: Investment = $180,000; salvage recovered now = $70,000; operating cash flows = $180,000; PV of salvage forgone = $5,500; PV of salvage recovered = $14,000; CCATS = $35,000. Multiple Choice $119,500 $121,500 $115,500 $113,500  $117,500