1. Accounting Rate of Return on average investment of Project A (expressed to two decimal places). 1.2 Net Present Value of both projects. 1.3 Internal Rate of Return of Project B (expressed to two decimal places) using interpolation
Q: a. If Forrest pays the invoice on June 8, what will Forrest pay? Amount paid b. If Forrest pays on…
A: Answer a. A 2/10 EOM FOB means that there will be a 2% discount given to the buyer if the invoice is…
Q: Dont use excel please DIRECTIONS: Compute the requirements of each problem. All computations must be…
A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…
Q: mtio Calculations Select the images below to enlarge. Balance Sheet Murawski Company Balance Sheet…
A: The current ratio represents the ratio between current assets and current liabilities of company and…
Q: (1) Determine the efficient amount of investment. (ii) Suppose that there is no contract and the two…
A: “Since you have posted a question with multiple sub parts, we willprovide the solution only to the…
Q: Damron, Incorporated, has 225,000 shares of stock outstanding. Each share is worth $83, so the…
A: A company may raise funds from multiple sources. A collection of all these sources constitutes the…
Q: 1. 2. 3. P Php7,500.00 Php8,750.00 r/year 17.4% 19.5% t 15 months 3 years 250 days ASAP ONLY ROUND…
A: Please refer to the excel spreadsheet below. The first cell is A1 for formulae reference. P…
Q: Jiminy's Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 6…
A: Cost of debt refers to the rate of interest after considering the tax that is paid by the company on…
Q: Apex Corporation is considering the purchase of Pinnacle Company in a stock-for-stock exchange.…
A: Earning per share is a ratio that shows the earing of investors on each share. It's a financial…
Q: Determine the future value in the account: Lottery winnings of $2,900 are invested in a traditional…
A: STEP 1 An annual percentage yield, or APY, measures the amount of money or interest you make on…
Q: Fritz Benjamin buys a car costing $17900. He agrees to make payments at the end of each monthly…
A: The loan amount refers to the money that is borrowed by the borrower from the lender in against of…
Q: Suppose you observe the following information related to Treasury yields. Each bond pays semi-annual…
A: Zero coupon does not pay any coupon payment during the life of bonds but pay the face value of bond…
Q: Dividend payout:0.16 cent quarterly (16 quarters) Dividend growth rate:1.5% Appropriate rate of…
A: The anticipated value of an investment based on its expected future cash flows is known as intrinsic…
Q: Suppose Wacken, Limited, just issued a dividend of $1.93 per share on its common stock. The company…
A: Stock valuation is a process in which all the expected dividends are discounted to its present value…
Q: Mr. Peter takes out a mortgage of $50000 to buy a house. The mortgage will be paid over 20 years…
A: A mortgage is a loan taken out to purchase a property, typically a home. The property serves as…
Q: Increased compliance and regulatory requirements have no impact on a Bank's noninterest expense…
A: Bank's noninterest expense, also referred to as operating expenses, are the costs associated with…
Q: Valero Energy's balance sheet showed total current assets of $3,000, all of which were required in…
A: Net operating working capital is the difference between a company's current assets (excluding cash…
Q: For an investment ending at time T we denote the net cash flow at time t by ct and the net rate of…
A: The net present value (NPV) of a project can be used to determine whether it is profitable or not.…
Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two…
A: The current value of future cash flows that will be received has been adjusted to reflect a…
Q: Estimate what happens to the value of the delta and gamma neutral portfolio when there is a shock to…
A: The financial institution has a portfolio of over-the-counter derivatives on pounds sterling which…
Q: Tommy Tutone is buying a $250,000 house and facing $6,500 in closing costs. He plans to put 20% down…
A: Amortization table In a table known as a loan amortization schedule, each periodic loan payment that…
Q: Collowing CIS suma working project. Add 10% to your computed figure to allow for contingencies.…
A: Working capital is a balanced amount available that is used to meet the current obligations of the…
Q: generates $802 per month in income on average. What is Eva's net monthly cash flow?
A: Net cash flow is the difference between cash inflow (income) and cash outflow (expenses). To…
Q: Assume we are using an extreme value model to estimate VaR and cVaR of potential losses L with u =…
A: a. For a 99% VaR, the threshold value z is given by the inverse cumulative distribution function…
Q: Your company leases cars to other companies for revenue. You intend to invest BD13,000 this year to…
A: a. To determine which cars to purchase based on NPV, we need to calculate the NPV for each car and…
Q: Use the information below to answer the questions that follow. U.S. $ EQUIVALENT CURRENCY PER U.S. $…
A: A cross-currency exchange rate is an exchange rate where two different currencies are valued against…
Q: If you invest $300 per month at an annual interest rate of 10%, how much will you have after 30…
A: Value of monthly payment after 30 years is calculated as the future value of monthly investment…
Q: ou will have $56,500 in student loans by the time you graduate. The interest rate is 4.5 percent. If…
A: Loans are paid by the equal monthly installments and these are paid by equal monthly payments and…
Q: a. If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully?…
A: By rearranging a PV of ordinary annuity formula we can determine the time taken. PV = PMT…
Q: Whispering Corp. is planning to replace an old asset with new equipment that will operate more…
A: Data given: Book value of old asset=$ 2100 Selling price of old asset=$2100 Purchase price of new…
Q: Which of the following might be used when a parent wishes to lower the apparent profitability of its…
A: The transfer pricing is a type of pricing in which the goods will be transferred from parents to the…
Q: What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to…
A: Derivatives A derivative is a securities whose value is generated from or dependent on one or more…
Q: a. Explain forecasting exchange rates. b. Explain four forecasting techniques.
A: STEP 1 When forecasting exchange rates, analytical principles are used to calculate future rates.…
Q: 1. An amount of Php150,000 is invested for 9 months at 4%. What is the interest and the maturity…
A: Hi student Since there are multiple questions, we will answer only first question. Simple interest…
Q: (Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan…
A: The rate of interest refers to the rate that is applicable on a periodic basis be it weekly,…
Q: Assuming an inflationary economy, the future value interest factor is O always greater than 1.0. O…
A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…
Q: Mortgage payments Principal: $180,000.00 Interest Monthly Rate Payment 3.5% 5% 6% A. $347,760 C.…
A: STEP 1 The amount that is deducted from your outstanding loan balance is known as the principal…
Q: An investment offers $9,200 per year for 17 years, with the first payment occurring one year from…
A: STEP 1 Given a specific rate of return or discount rate, an annuity's present value (PV) is the…
Q: 7. What's the future value of a 7%, 5-year ordinary annuity that pays $600 each year? If this was an…
A: An annuity is a fixed-rate, equal series of cash flows that are made at regular periods. Annuities…
Q: 1. Mr. Santos would like to have P6,500,000 in his account by the end of 6 years. How much should he…
A:
Q: You want a seat on the board of directors of Four Keys, Incorporated. The company has 175,000 shares…
A: Straight voting is a type of voting in which the individual needs to have more than 50% of shares in…
Q: Investor has had the following returns in the Magic Fund for the past 4 years: 15%, 25%, -30%, 18%.…
A: The four years returns are 15%,25%,-30%, and 18%.
Q: 2. A fund is to be created which pays out a scholarship of £9,000 every year in perpetuity. The…
A: Present value of annuities based on time and interest rate would give the equivalent money required…
Q: Mike Branson invested his summer earnings of $6000 in a savings account for college. The account…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: First National Bank charges 10.5 percent compounded monthly on its business loans. First United Bank…
A: The effective annual rate is the rate of interest after considering the effect of compounding over…
Q: A loan should be repaid over 8 years with 32 quarterly payments of $362.19 at j4 = 8%. Under the…
A: A loan is an agreement between two parties where money is forwarded by one party in exchange for a…
Q: The Meadows Corporation needs to raise $52 million to finance its expansion into new markets. The…
A: Issue of shares is one of the important source of finance being used in business. Some commission…
Q: Use the following corn futures quotes (priced in cents): Corn 5,000 bushels Contract Month Mar May…
A: A future contract is a written agreement to purchase or sell a specific good, service, or group of…
Q: If the Canadian dollar appreciate by 5% relative to the British pound, what will be the percentage…
A: The exchange rate is the value of a country's currency in relation to the currency of another…
Q: Required: (a) Calculate the present value of the note (PV).
A: The present value of the note is as follows. =Amount repaid(1+interest rate)=$10000(1+12%)= $ 8,929
Q: Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly…
A: Answer Future Value $32,000 Period In Years 2.5 Rate 7% Compund Quaterly Total Periods…
1. Accounting
decimal places).
1.2
1.3
interpolation
Step by step
Solved in 2 steps with 1 images
- Micropolis Technology began a new development project in 2020. The project reached technological feasibility on September 1, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to September 1, 2021, were $4,560,000, and costs incurred from June 30 to the product release date were $1,920,000. The 2022 revenues from the sale of the new software were $3,950,000, and the company anticipates additional revenues of $11,850,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2022 would be:A company began a new software development project in 2023. The project reached technological feasibility on June 30, 2024, and was available for release to customers at the beginning of 2025. Development costs incurred prior to June 30, 2024, were $3,260,000 and costs incurred from June 30, 2024, to the product release date were $1,460,000. The economic life of the software is estimated at four years. For what amount will software be capitalized in 2024?SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2023 is as follows:USDIncomeSales 90,000Interest Income 2,500Dividend Income 6,000Other Income (exempt) 2,000ExpensesDepreciation 20,000Interest Expenses (1) 7,000 Repairs & Maintenance 1,500Legal & professional fees (2) 8,000Salaries 30,000 Bad debts (3) 3,000Other Expenses (4) 20,000 Taxation 2,250Notes1. All Interest was paid. There was no accrued interest at year end.2. Professional fees consist of:• Audit and accountancy fees $3,600• Legal fees re collection of bad debts $2,000• Cost of setting up business in the selected location $900• Architect’s fee for designing a warehouse that has not yet been constructed $1,5003. The Bad Debts expense represents a debt which was outstanding for 270 days.4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction…
- A company is thinking about marketing a new product. Up-front costs to market and develop the product are $13.60 Million. The product is expected to generate profits of $2.48 million per year for 26 years. The company will have to provide product support expected to cost $218348 per year in perpetuity. Furthermore, the company expects to invest $40739 per year for 10 years for renovations on the product. This investing would start at the end of year 7. Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 6.91%SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2023 is as follows:USDIncomeSales 90,000Interest Income 2,500Dividend Income 6,000Other Income (exempt) 2,000 ExpensesDepreciation 20,000Interest Expenses (1) 7,000 Repairs & Maintenance 1,500Legal & professional fees (2) 8,000Salaries 30,000 Bad debts (3) 3,000Other Expenses (4) 20,000 Taxation 2,250Notes1. All Interest was paid. There was no accrued interest at year end.2. Professional fees consist of:• Audit and accountancy fees $3,600• Legal fees re collection of bad debts $2,000• Cost of setting up business in the selected location $900• Architect’s fee for designing a warehouse that has not yet been constructed $1,5003. The Bad Debts expense represents a debt which was outstanding for 270 days.4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction…SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2023 is as follows:USDIncomeSales 90,000Interest Income 2,500Dividend Income 6,000Other Income (exempt) 2,000 ExpensesDepreciation 20,000Interest Expenses (1) 7,000 Repairs & Maintenance 1,500Legal & professional fees (2) 8,000Salaries 30,000 Bad debts (3) 3,000Other Expenses (4) 20,000 Taxation 2,250Notes1. All Interest was paid. There was no accrued interest at year end.2. Professional fees consist of:• Audit and accountancy fees $3,600• Legal fees re collection of bad debts $2,000• Cost of setting up business in the selected location $900• Architect’s fee for designing a warehouse that has not yet been constructed $1,5003. The Bad Debts expense represents a debt which was outstanding for 270 days.4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction…
- Assoria Plc has $20 million of capitalised development expenditure at cost brought forward at 1 October 2022 in respect of products currently in production. A new project began on 1 October 2022. The research stage of the new project lasted until 31 December 2022 and incurred $1.4 million of costs. From that date the project incurred development costs of $800,000 per month. On 1 April 2023 the directors of Assoria Co became confident that the project would be successful and yield a profit well in excess of costs. The project was still in development at 30 September 2023. Capitalised development expenditure is amortised at 20% per annum using the straight-line method. What amount will be charged to profit or loss for the year ended 30 September 2023 in respect of research and development costs?Beta-Juliet, a major manufacturer of carriages in Tibikeland, Verona has signed a partnership agreement with Disney which means from 2022 Beta-Juliet will be supplying first-class carriages to Disneyland. With the announcement of this news, Sophia, the CFO is expecting a steady revenue over the following years, therefore recommends an increase in their constant dividend rate to 12% as of 2022. After the first year, the end of 2022, the company's net income has increased to 100 million DD (DisneyDollars). The market price is 1000 DD and there are 1 million shares traded on the stock market. What is the dividend yield? Answer up to 3 decimal places.This problem has subparts that still need to be answered Assume Avaya contracted to provide a customer with Internet infrastructure for $2,350,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: 2024 2025 Costs incurred during the year $ 328,000 $ 1,830,000 Estimated costs to complete as of 12/31 1,312,000 0 Billings during the year 436,000 1,690,000 Cash collections during the year 341,000 1,785,000 Required: Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time…
- Axcel Software began a new development project in 2015. The project reached technological feasibility on June 30, 2016, and was available for release to customers at the beginning of 2017. Development costs incurred prior to June 30, 2016, were $3,200,000 and costs incurred from June 30 to the product release date were $1,400,000. The 2017 revenues from the sale of the new software were $4,000,000, and the company anticipates additional revenues of $6,000,000. The economic life of the software is estimated at four years. Capitalized software costs are: A. $0. B. $3,200,000. C. $1,400,000. D. $4,600,000Pseudo Enterprise has ambitious expansion plans for 2022. At a recent Annual General Meeting, the shareholders approved the proposal for further expansion and the board of directors has allocated £330,000 for new projects. As the Senior Manager of Pseudo Enterprise, you have been authorised to conduct the project appraisal for five new projects and submit a recommendation to management on how best to spend £330,000 for new projects. The projects you are considering have the following information: Year 0 (£,000) 1 (£,000) 2 (£,000) 3 (£,000) 4 (£,000) Project 1 -105 0 180 0 0 Project 2 -150 90 90 90 0 Project 3 -60 30 30 30 30 Project 4 -90 45 45 45 45 Project 5 -180 210 0 0 0 The cash flows are confined to the lifetime of each project. Apart from initial investments that occur at the beginning of the project, all cash flows occur at year end. The following information on the projects is…Pseudo Enterprise has ambitious expansion plans for 2022. At a recent Annual General Meeting, the shareholders approved the proposal for further expansion and the board of directors has allocated £330,000 for new projects. As the Senior Manager of Pseudo Enterprise, you have been authorised to conduct the project appraisal for five new projects and submit a recommendation to management on how best to spend £330,000 for new projects. The projects you are considering have the following information: Year 0 (£,000) 1 (£,000) 2 (£,000) 3 (£,000) 4 (£,000) Project 1 -105 0 180 0 0 Project 2 -150 90 90 90 0 Project 3 -60 30 30 30 30 Project 4 -90 45 45 45 45 Project 5 -180 210 0 0 0 The cash flows are confined to the lifetime of each project. Apart from initial investments that occur at the beginning of the project, all cash flows occur at year end. The following information on the projects is…