A machine with a purchase value of (150,000) dollars and the useful life of the machine is 7 years. Calculate the annual depreciation of the machine | And the book value for each year by the method of the sum of the years of the productive life, if you know that the book value of the machine at the end of its life (the ruins) is 80,000 dollars.
Q: Plot since 1971 the monthly Japanese yen-U.S. dollar exchange rate (FRED code: EXJPUS) without…
A: Exchange rate is widely used in currency market to exchange various currencies, so basically…
Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 9 percent. (Do not round…
A: IRR refers to the internal rate of return. It is an important capital budgeting tool that is used to…
Q: Lockheed Martin (LM) the aerospace and defense conglomerate, has a stellar dividend history, with…
A: The question is related to the Dividend discount growth model. The Intrinsic Value of Share is the…
Q: ollowing information: · Current FCFF $745 million · Outstanding shares 309.39…
A: The overall worth of the firm that may be attributed to equity stake is known as equity value, often…
Q: What is meant by a banker’s acceptance?
A: Money market instruments refers to financial instruments whose maturity period lies between 30 to…
Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company…
A: Given: Operating income = $36,000 Interest expenses = $5,000 Tax rate = 25%
Q: Use the compound interest formula A = P(1 + r)' and the given information to solve for t. 201 A=…
A: To calculate the value of T we will use the below formula A = P*(1+r)T Where A - Accumulated…
Q: Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7…
A: Payback Period is the length of time required to recover the cost of Investment. Discounted Payback…
Q: Edmonds Corporation's sales are expected to increase by 10% from $4.75 million in 2016 to 5.225$…
A: Increase in sales - 10% Sales in 2016 - $4.75 million Sales in 2017 - $5.225 million Total assets -…
Q: The following information for particular project: using the S.A (Sensitive Analysis) to show is the…
A: Net present value(NPV) is the difference between present value of all cash inflows and initial…
Q: According to your research, the growth rate in dividends for SIR for the next five years is expected…
A: Given: Current dividend = $2.05 Required return = 12% Growth rate = 5.25%
Q: Lenders often require home buyers to pay "points." A point is 1% of the purchase price of the home.…
A: Amount of mortgage loan "P" is $155,000 Time period is 15 years Option A Annual interest rate is…
Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…
A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…
Q: Consider the following data: Expected Return Standard Deviation Russell Fund 16% 12% Windsor Fund…
A: Given: Particulars Return Standard deviation Russell Fund 16% 12% Windsor Fund 14% 10%…
Q: Calculate the yield to maturity of a bond with the help of the following given information: -…
A: Yield to maturity = [Interest +(Face value - Market price) /Life if bond]/[Face value + Market…
Q: determine how much can we afford to invest to overhaul this machine
A: The maximum amount that can be afforded for the machine will be the Present value of future…
Q: 1. Corn is an essential commodity in a small Central American country and the government intends to…
A: Solution:- Subsidy means the benefit granted by the government by decreasing the price, while by…
Q: A university is trying to determine how much it should charge for tickets to basketball games to…
A: Solution to question: Step 1 Calculation of Total cost Information Given: Actual Cost of the…
Q: An investment will provide you with $100 at the end of each year for the next 10 years. What is the…
A: Time period is 10years Discount rate is 8% Annuity amount per year is $100 To Find: Present Value…
Q: Find the APR of the loan given the amount of the loan the number and type of payments, and the add…
A: Annual percentage rate (APR) refers to a real interest rate which an investor is expect from his…
Q: A company anticipates sales for the latest venture to be Tk. 300,000 in the first year. Sales are…
A: Working capital is the amount required to run day to day business activities. The term Working…
Q: Related to Solved Problem 3.3] For each of the following situations, choose the equation needed to…
A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…
Q: Facing the increasing interest rate of the U.S. that will be even higher in the next several months,…
A: According to interest rate parity the exchange rate must move with changes in interest rates of the…
Q: certain central bank from 2000 to from 2000 to 2016 the average price of a new home in a certain…
A: Solution:- Percentage increase means the rise in price in the base price.
Q: What is the prime rate? Who gets the prime rate?
A: Discount rate is the interest rate that is charged to the commercial banks and other such financial…
Q: If Sandy can afford car payments of $320 per month for 7 years, what is the price of a car that she…
A: A series of equal payments at regular intervals over a period of time is called annuity. If the…
Q: What is Unsecured financing?
A: Whenever a person requires financial assistance, they may contact a financial institution and seek…
Q: A zero coupon with a $1000 face value matures in 10 years. What is the price of the bond today if…
A: Zero coupan bond valution. Zero coupan bond valued at disounting value of maturity value. The market…
Q: What is the basic difference between a forward contract and a futures contract? How important is…
A: "Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Steady Company's stock has a beta of 0.24. If the risk-free rate is 6.1% and the market risk premium…
A: Solution:- Company’s cost of equity means the minimum rate of return required by the equity…
Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…
A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%
Q: You are offered to spend P500,000 on a certain project that promises to yield yearly benefit of…
A: Under cost benefit analysis, present value of the benefits from the project are compared with the…
Q: a. How much is the ForEx gain or (loss) on December 31, 2017? b. How much is the outstanding…
A: Data given: Date of invoicing and shipping= December 1, 2017 Date of payment = February 1,2018 JLN's…
Q: QUESTION 3 For the nonconventional net cash flow series shown, the external rate of return per year…
A: MIRR is techniques under Capital budgeting which is used to assess the cost and profitability of a…
Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…
Q: An item is sold for an initial installment of $600 and 18 payments of $500 at the end of each month,…
A: Amortization schedule: An amortization schedule is a detailed table of periodic loan payments that…
Q: Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount…
A: NPV refers to the Net present value, It is the difference between present value of outflow and…
Q: An eight-year note for $4000 issued on November 1, 2016, with interest at 6.2% compounded quarterly…
A: Present Value of the note = $4,000 Rate of interest = 6.2% Duration of the bond(n)=8 years
Q: mount saved on interest
A: Amortized loan refers to the amount of loan which requires regular monthly payments. Every payment…
Q: An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded…
A: We need to use RATE in excel to calculate realised yield of bond. The realised yield =…
Q: (Yield to maturity) Fitzgerald's 15-year bonds pay 8 percent interest annually on a $1,000…
A: Given: Particulars Years 15 Coupon rate 8% Par value(FV) $1,000 Current Price (PV) $875…
Q: in 12 years, but can be called in 6 years at a call price of R1070. What value do you need to input…
A: Yield To Call: It represents the yield/expected return to the bondholder if the bond is held till…
Q: Mr. Espinoza's debt of P160,000 is amortized by making equal payments at the end of every three…
A: Since you have posted a question with multiple subparts, we will solve first three subparts for you.…
Q: (Related to Checkpoint 9.6) (Inflation and interest rates) What would you expect the nominal…
A: Nominal interest rate refers to the interest rate before taking inflation into account. The equation…
Q: a. The after-tax cost of debt using the bond's yield to maturity (YTM) is 12.13%. (Round to two…
A: WACC or weighted average cost of capital = (Weight of debt*After tax cost of debt) + (Weight of…
Q: Delta Itd has $820 in inventory, $640000 in fixed assets, $670 in accounts $800 in receivable,…
A: Net Working Capital refers to the concept which is a measure of liquidity. It helps us in…
Q: A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million…
A: The question is related to Ratio Analysis. The Net Profit Margin is calculated with the help of…
Q: Which are rights of common stockholders? Check all that apply: The right to a share of dividends…
A: Common stock holders are the true owner of business corporation. They are also called residual…
Q: a. The payback period of the proposed investment is years. (Round to two decimal places.) b. The NPV…
A: Payback Period: It is the period in which the investment or project returns back its initial cost…
Q: According to your research, the growth rate in dividends for DR Dime for the previous 10 years has…
A: Given data Current dividend(D0 )= $0.93 Growth rate(G) = -13% Current price(P0 ) = $15.56
Step by step
Solved in 2 steps with 1 images
- Utica Machinery Company purchases an asset for 1,200,000. After the machine has been used for 25,000 hours, the company expects to sell the asset for 150,000. What is the depreciation rate per hour based on activity?Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Montello uses the units-of-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).
- Dunedin Drilling Company recently acquired a new machine at a cost of 350,000. The machine has an estimated useful life of four years or 100,000 hours, and a salvage value of 30,000. This machine will be used 30,000 hours during Year 1, 20,000 hours in Year 2, 40,000 hours in Year 3, and 10,000 hours in Year 4. With DEPREC5 still on the screen, click the Chart sheet tab. This chart shows the accumulated depreciation under all three depreciation methods. Identify below the depreciation method that each represents. Series 1 _____________________ Series 2 _____________________ Series 3 _____________________ When the assignment is complete, close the file without saving it again. Worksheet. The problem thus far has assumed that assets are depreciated a full year in the year acquired. Normally, depreciation begins in the month acquired. For example, an asset acquired at the beginning of April is depreciated for only nine months in the year of acquisition. Modify the DEPREC2 worksheet to include the month of acquisition as an additional item of input. To demonstrate proper handling of this factor on the depreciation schedule, modify the formulas for the first two years. Some of the formulas may not actually need to be revised. Do not modify the formulas for Years 3 through 8 and ignore the numbers shown in those years. Some will be incorrect as will be some of the totals. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as DEPRECT. Hint: Insert the month in row 6 of the Data Section specifying the month by a number (e.g., April is the fourth month of the year). Redo the formulas for Years 1 and 2. For the units of production method, assume no change in the estimated hours for both years. Chart. Using the DEPREC5 file, prepare a line chart or XY chart that plots annual depreciation expense under all three depreciation methods. No Chart Data Table is needed; use the range B29 to E36 on the worksheet as a basis for preparing the chart if you prepare an XY chart. Use C29 to E36 if you prepare a line chart. Enter your name somewhere on the chart. Save the file again as DEPREC5. Print the chart.Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one the company expects the truck to be driven for 26,000 miles; in year two, 30,000 miles; and in year three, 40,000 miles. Consider how the purchase of the truck will impact Montellos depreciation expense each year and what the trucks book value will be each year after depreciation expense is recorded.Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After three years of recording depreciation, Montezuma determines that the delivery truck will only be useful for another three years and that the salvage value will increase to $4,000. Determine the depreciation expense for the final three years of the assets life, and create the journal entry for year four.
- For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A. A patent with a seventeen-year remaining legal life was purchased for $850,000. The patent will be usable for another six years. B. A patent was acquired on a new tablet. The cost of the patent itself was only $12,000, but the market value of the patent is $150,000. The company expects to be able to use this patent for all twenty years of its life.A machine costing 350,000 has a salvage value of 15,000 and an estimated life of three years. Prepare depreciation schedules reporting the depreciation expense, accumulated depreciation, and book value of the machine for each year under the double-declining-balance and sum-of-the-years-digits methods. For the double-declining-balance method, round the depreciation rate to two decimal places.The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given here. The company’s cost of capital is 10%. Should the firm operate the truck until the end of its 5-year physical life? If not, then what is its optimal economic life? Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project?
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Urquhart Global purchases a building to house its administrative offices for $500,000. The best estimate of the salvage value at the time of purchase was $45,000, and it is expected to be used for forty years. Urquhart uses the straight-line depreciation method for all buildings. After ten years of recording depreciation, Urquhart determines that the building will be useful for a total of fifty years instead of forty. Calculate annual depreciation expense for the first ten years. Determine the depreciation expense for the final forty years of the assets life, and create the journal entry for year eleven.Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value at the time of purchase was $15,000, and it is expected to be used for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determines that the warehouse will be useful for only another fifteen years. Calculate annual depreciation expense for the first four years. Determine the depreciation expense for the final fifteen years of the assets life, and create the journal entry for year five.
