A small bridge can be constructed for $ 20,000 with a life of 30 years, after which it can be rebuilt at the same cost. Maintenance cost for the 30 - year life are estimated to be $ 1,000 each year for the first 5 years, and increase to $ 1,500 in the succeeding years thereafter.  Compute the capitalized cost of the bridge at 12%. a. $ 32,526 b. $ 33,459 c. $ 31,388 d. $ 34,128

Q: On May 1, 2021, Bo Smith, proud father of newborn son Bobo, purchased $200,000 in zero-coupon bonds…

A: Bonds are defined as financial instruments used by companies to raise additional funds from the…

Q: a. What is the size of the quarterly payments? (Round to the nearest cent)   b. How much will the…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Project X requires an initial outlay of sh.500, 000 and has a profitability index of 1.4. The…

A:

Q: 5. You have one asset in CCA Asset Class 12. You purchased this asset five years prior for $10.25…

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Q: A corporation decides to deposit fixed payment per account earning 9% interest per year in order to…

A: Compound interest is the interest that is charged on the principal amount as well as interest…

Q: Bianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per…

A: The amount of money after 5 years can be calculated with the help of future value of annuity…

Q: 3. An engineer wants to make equal annual deposits for years in a bank offering 5% interest so that…

A: To calculate value of deposit at the date of first withdrawal Present value formula is used Present…

Q: Analysts expect Costco stock to pay a dividend of $3.70 in 1 year and is expected to sell for…

A: Next dividend (D1) = $3.70 Stock price in year 1 (P1) = $374.41 Required return (r) = 5.0%

Q: A machine is to be purchased for P155,000 it has an estimated life of 8 years and a salvage value of…

A: Accumulated amount needed = P 155000 - P 6000 = P 149000 n = 8 years Annual deposit (A) = P 14008

Q: Energy efficiency of an equipment can be improved by 20% through enhanced maintenance leading to a…

A: Maximum allowable investment is the present value of fuel saving  The maximum allowable investment…

Q: A real estate development company is planning to build five homes, each costing $175,000, in    2 1…

A: Total amount needed in the future (F) = $175000 * 5 = $875000 n = 2.5 years = 5 semiannual periods r…

Q: Assume you graduate from college with $30,000 in student loans. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: dollars/year for the next 6 years. If the interest rate is 3.9%/year compounded continuously, find…

A: Future Value of Annuity: It represents the future worth of the present stream of annuity cash…

Q: Company "A" has a beta of 1.5 and a cost of capital of 25%.  Company "B" has a beta of 0.8 and a…

A: The cost of capital is a firm's computation of the minimum return required to rationalize embarking…

Q: 3. A mortgage balance of $18000 is renewed for the remaining amortization period of 3ycars at %4…

A: Mortgage balance (B) = $18000 n = 3 years = 36 months Interest rate = 4% compounded semiannually…

Q: 4) Two installations are being considered to provide for water storage in a chemical plant. A tank…

A: The evaluation of costs and benefits is at the heart of economic analysis. To help with resource…

Q: online payment method

A: Payment refers to the money transferred in exchange for goods or services decided or agreed upon…

Q: Howell Petroleum is considering a new project that complements its existing business. The machine…

A:

Q: Construct a market weighted index using 3 stocks below over a one year period to find the index…

A: In market weighted index, we find the total capitalization of the market and divide by the shares…

Q: What is the Macaulay duration of a bond with a coupon of 5.8 percent, eleven years to maturity, and…

A: The Macaulay duration of a bond is the weighted average duration of the bond where we take the…

Q: Identify the following if it is an example of COMMERCIAL BANK, THRIFT BANK, GOVERNMENT BANK, PRIVATE…

A: Banks is referred as the financial institution, which helps in accepting the deposits from public as…

Q: ou purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down…

A: Loan amount (PV) = $200,000 Interest rate = 4% Monthly interest rate (r) = 4%/12 = 0.33333333333%…

Q: To purchase s11,700 worth of lab equipment for her business, Jenny made a down payment of s1600 and…

A: This is the case of an amortized loan. An amortized loan is that loan in which the periodic payments…

Q: 1. A share of stock of company is now selling for 23.5 lei. A financial analyst summarizes the…

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Q: Solve this cashflow: 20,000 EDY 5000 (D 000 15 000 20,000 i: 6.3% o bimentang

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Q: Maintenance cost of a machine is S 100 during the second year and to increase by $ 100 every year…

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Q: A company is evaluating a new 4-year project. The equipment necessary for the project will cost…

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Q: value of the FRA

A: FRA stands for Forward rate agreement refers to the interest rate decided between two parties that…

Q: a. Expected PW of Alt. 1 b. Expected PW of Alt. 2 c. The preferred alternative: Type either 'Alt. 1'…

A: Expected PW is the PW that will most likely materialize given the different situations for an…

Q: The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: 20. The derivatives market allows for a. investors to speculate on price movements. b. the purchase…

A: A contract between two parties for buying and selling underlying assets is known as derivatives.…

Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…

A: Required return is 11% To Find: Profitability Index Net peresent Value

Q: A corporation decides to deposit fixed payment per account earning 9% interest per year in order to…

A: Amount required after 9 years 235000   Period in years 9   No of period (Quarterly) 36   Rate…

Q: You buy a $500Ok home with a 10% down payment at a 3% mortgage rate. If home prices decline 5% ner…

A: Home equity refers to the difference between the value of the home and how much a person owes as a…

Q: Mr. Velasquez invests P 2,500 at the end of each 6 months to a fun Paying 8 % % compounded…

A: Semiannual deposit (S) = P 2500 r = 8.75% per annum = 4.375% semiannually

Q: 23. Amanda deposited $5, 600 into a savings account that earns 3.5% interest compounded daily. Find…

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Q: Financial analysts forecast GDY Inc.’s growth for the future to be 5%. GDY's recent annual dividend…

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Q: When Reserve Bank actions cause interest rates on newly issued bonds to decrease from 6% to 5%, the…

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Q: - Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a…

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Q: A parcel of land can be leased for a period of 10 years. Initial development costs for clearing,…

A: Initial cost (C) = P 250000 First year revenue (R) = P 22000 Growth rate (g) = 5% n = 10 years r =…

Q: In March, Corey begins to save money for a video game and a TV he wants to buy in December. He…

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Q: 4. What is the equivalent amount today of an annual deposit of Php200000 for 15 years if money is…

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Q: Q1. Aling Azon bought 3 sets of air conditioning unit for her three bedrooms. She agreed to pay…

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Q: Which maturity bond would be better for this investor,  the 10 or 15-year? What would be the dollar…

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Q: A firm wishes to bid on a contract that is expected to yield the following after-tax net cash flows…

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Q: 6) Consider two thirty year bonds with the same purchase price. Each has a coupon rate of 5% paid…

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.