000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $4,200 of net working capital throughout the life of the project. What is the net present value of this expansion p

Q: A product sells for ₱80 per unit and has a contribution margin of ₱35 per unit. Monthly fixed expens...

A: Contribution per unit = P 35 Monthly fixed cost = P 50,000 Loan amount = P 50,000 Monthly interest e...

Q: For a given cash flow diagram, if the interest rate i-10%, and A=$600, the F value is closest to: F=...

A: We need to compute present value of A and F and equate it to the value of P

Q: Which of the following statements is correct?       A. If the NPV of a project is greater than 0, it...

A: Capital budgeting Capital budgeting is a concept where potential major projects or investments are u...

Q: Alicia Inc. leased a machinery to Hannah & Co. on January 1, 2020. Lease term is 8 years. Annual ren...

A: Fair value of lease = present value of all lease rentals and guaranteed residual value. Since the le...

Q: A $5,000 bond with a coupon rate of 6.9% paid semiannually has ten years to maturity and a yield to ...

A: Par value of bond = $ 5000 Coupon rate = 6.90% Semi annual coupon amount = 5000*0.0690/2 = $172.50 Y...

Q: 1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: The yield to maturity on a bond with a price equal to its par value will Select one: a. Will be l...

A: If price of a bond is equal to par value than YTM and coupon rate will always be same.    

Q: 1.      Bobby Nelson wants to buy a used Jeep in 7 years. He estimates the Jeep will cost $17,000. A...

A: future value  = present value*(1+rate)^n

Q: Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be ...

A: We need to compute annual operating cash flow each year. Kindly note that depreciation is non cash e...

Q: If you need to fake out a $10,000 student loan 2 years before graduating, which loan option will res...

A: Loan outstanding is = loan taken + 2.5 years interest capitalised(assuming the interest rates are p....

Q: Maricar bought a split type inverter aircon which costs P33,500 in an installment basis . How much i...

A: It can be calculated using rate formula in excel. =RATE (nper, pmt, pv, [fv], [type], [guess]) Rat...

Q: The probability distributions of expected returns for stocks XMX and BMX are as follows: Probability...

A: Let Pn = Probability of each state Xn = Return of XMX in each state Bn = Return of BMX in each state...

Q: USD United States Dollar 529 537 EUR Euro 713 723 USD/EUR PES Argentina 200 223 USD/PES NOK Norwegia...

A: As nothing given in the question, we calculated cross rate for both buy rate and sell rate.  

Q: At the beginning of this year, the company has a $150,000 investment opportunity with the following ...

A: Sales  = $240,000 Contribution margin ratio = 50% of sales Fixed expenses = $84,000

Q: Due and Perpetuity The value of perpetuity per year is P 10,000.00 and the annuity is P 5,000.00, w...

A: Value of perpetuity = 10,000 Annual Amount = 5,000    

Q: Companies generally initiate dividends to shareholders when the business reaches Select an answer an...

A: Companies during the growth stage require funds, cash and money to finance their growth and expansio...

Q: Wonder World Ltd. outstanding bonds have a $1000 par value, a 9 percent semi-annual coupon, 8 years ...

A: Par value (F) = $ 1000 Coupon rate = 9% Semi annual coupon amount (C) = 1000*0.09/2 = $45 Years to m...

Q: f the curvature in the relationship between bond prices and bond yields.

A: Macaulay duration of bond is weighted average no. of times fixed cash flows associated with bond wil...

Q: A company has an ROE of 12% and payouts 41% of its earnings as dividends.  It is planning to pay a $...

A: The dividend growth rate can be calculated as the sustainable growth rate. 

Q: Problem 10-30 (IFRS) At the beginning of current year, Southstar Company leased a building with the ...

A: This will be considered as an operating lease as the entity has an option to purchase the leased ass...

Q: or ₱10 per unit and has variable expenses of ₱6 per unit. Fixed expenses total ₱45,000 per month. Ho...

A: In this we have to calculate the profit before tax and from that we can get number of units required...

Q: The following exchange rates are available to you. (You can buy or sell at the stated rates.) ...

A: ¥120.00 = 1A$ SF1.6000 = 1A$ ¥80.00 =1SF Amount available = SF10, 000,000

Q: Firms concerned with the sharemarket reaction to dividend announcements may adopt a “sticky" dividen...

A: Hi, since you have posted multiple questions which are unrelated, we will answer only the first one ...

Q: For the arithmatic gradient of cash flow given below, if G= $550 , the value at year 23(V23) is: V=....

A: Value at year 23 = ? Interest Rate = 5% First Cash Flow = 1800 G = 550 N = 23    

Q: bond pays P342 interest per year and has face value of P9,813 at the end of 6 years, when it has to ...

A: Given information :  

Q: Describe two advantages of using credit cards. ..... Choose the correct answer below. OA. Relatively...

A: Credit card is referred to as an instrument for helping to make an instant credit on the basis of th...

Q: (b) If you have a bond with a face value of $40,000 and a coupon rate of 6%, but the market interest...

A: three cases exist, if coupon rate = market interest rate, bond sells at par if coupon rate > mark...

Q: The company sells a product for ₱30 per unit. Fixed expenses total ₱100,000 and variable expense of ...

A: let number of units be x sales = 30x profit = 0.45*30x = 13.5x  

Q: A common stock is expected that the earnings and dividends will grow at a rate of 25% for the next 4...

A: Growth rate up to 4 years = 25% Growth rate after 4 years = 0% Current dividend (D0) = P 1.25 Beta =...

Q: 10.    Best Motors has hired Robert Trent as its new president. Terms included the company’s agreein...

A: 4015 days = 11 years (4015/365) assuming that the first payment happens on the 11th year N = 12*2 FV...

Q: What is the future value of: Part a $400 in five years with an interest rate of 5%? Part b $5,00...

A: Future value = present value*(1 + interest rate)n

Q: (a) Calculate the amount of interest charged each month. (b) How much money will the company owe aft...

A: In this we need to calculate the monthly interest payment and loan amount will not change.

Q: If money is invested at 12% compounded semiannually, find the present value of P3,000 due at the end...

A: Amount due (F) = P 3000 r = 12% per annum = 6% semiannually n = 3.5 years = 7th semiannual period Le...

Q: Bramble Corp. uses the perpetual inventory and the gross method. On March 1, it purchased $ 54000 of...

A: Total purchase  $                  54,000 Return  $                   (5,400) Net purchase  $   ...

Q: In response to poor sales, the sales manager of As a result, the operating statement at the end of t...

A: We need to analyze the reason given for variances.

Q: A bond pays dividends of $110 at the end of each year. If the bond matures in 20 years, what is the ...

A: Here PMT  (dividends) = 110; n (or nper) = 20; pv = 1459 and rate = 12%. We need to find the face va...

Q: Hyundai is evaluating whether to build a new factory. The proposed investment will cost 3 million to...

A: Initial Investment = 3,000,000 Savings each year = 400,000 N = 10 years      

Q: Village Hardware expands its business at a cost of $20,000. They expect that the investment will gro...

A: future value = present value*(1+rate)n

Q: Determine the list of the initial financial statements in accordance with IFRS.

A: IFRS means International Financial Reporting Standards Thers is list of the Initial Financial Statem...

Q: line of credit at a bank was turned down. Among other things, the bank stated that the company’s 2 t...

A: Current ratio is a measure of short term solvency or liquidity.

Q: For a given cash flow diagram, if the interest rate i=10% , and A=$600, the F value F=? A Years 3. 4...

A: We need to compute present value of A and F and equate it to the value of P

Q: A stock is expected to pay $1.85 per share every year indefinitely and the equity cost of capital fo...

A: Expected dividend per year = $ 1.85 Cost of capital = 8.2%

Q: Debra is a jeweler that regularly purchases ingots of gold so as to manufacture jewelry. She is conc...

A: The profit diagram is as follows 

Q: Annual Percentage Rate 5.0% Nina buys a new sport utility vehicle for $33,000. She trades in her old...

A: A study that proves that the 1value of money today is higher than the future value of money is term ...

Q: Examine the basis for the description of bailay's[2004] definition of public finance as the most com...

A: The administration of a revenue of the country, expenditures, and debt load through different govern...

Q: Annuity Payment Payment Frequency Time Period (years) Nominal Rate (%) Interest Compounded Present V...

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at ...

Q: Please answer based on your own understanding. Describe the importance of portfolio management. Ple...

A: Let me start be explaining what portfolio management is. Portfolio management involves first of all ...

Q: Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail ou...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: 33. From the cash flow diagram, find the value of A that will establish economic equivalence with th...

A:

Q: In the aftermath of the mortgage crisis, Phil and Crystal, are considering remodeling their home. Th...

A: Future Value = $86,000 Interest Rate = 6% Time Period = 8 Years

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.