CH. 3 #9 Recompute the net present values using (a) a cost of money of 0.20 and (b) a cost of money of 0.05 for each of the investments of problem 8. A Week 3 Assignment1 VitalSource Bookshelf: The Cap xо Mail - outlook 8E6AAB8B8EB6 хG It has been said that few stockl Xb My Questions | bartleby+A online.vitalsource.com/#/books/9781135656232/cfi/6/22!/4/516/22/16/4/2@0:08. Compute the net present value (use a cost of money of 0.15) and the internal rate of return for each of the following investments:A <3. Capital Budgeting:..InvestmentPerlodGo to 3. Capital Budgeting: The12Traditional SolutionsA$(1,000)$1,322B(1,000)$615615What firms do(1,000)1,150Cash flows9. Recompute the net present values using (a) a cost of money of 0.20 and (b) a cost of money of 0.05 for each of the investments of problem 8.10. Prepare a schedule showing that, with a rate of growth of 0.15 per year $1,000 will grow to $1,322 in two years.11. Determine the internal rate of return of the following investment:Working capitalPeriodCash flow$(9,120)1,0005,00010,000Excluding interest payment2ConclusionsPop quiz12. How much could you pay in excess of the indicated cost for the investment in problem 11 if the cost of money were 0.10?13. Assume that you can only invest in one of the three investments of problem 8.Review problemsa. Using the internal rates of return of the three investments, which is preferred?b. Using the net present value method and a cost of money of 0.05, which is preferred?Problems14. A company uses a 10 percent discount rate. Assume equal annual cash proceeds.What should be the maximum acceptable payback period for equipment whose life is 5 years? What are the maximum acceptable paybacks forlives of 10, 20, and 40 years and infinite life?15. Assume that the discount rate is 5 percent and answer problem 14.16. Assume the discount rate is 0.06. A new machine that costs $7,000 has equal annual cash proceeds over its entire life and a payback period of7.0 years. What is the minimum number of full years of life it must have to be acceptable?17. Compute the internal rate of return of the following two mutually exclusive investments:Answers to pop quizSolutions to review problemsWe've updated our read aloud feature!Give it a try here.BibliographyInvestmentPerlodAa 4)10:09 PMP Type here to searchaO G 4)10/6/2020!

In the question given above, net present value(NPV) is calculated at 15% cost of capital for all the…

Answered: CH. 3 #9 Recompute the net present…

CH. 3 #9 Recompute the net present values using (a) a cost of money of 0.20 and (b) a cost of money of 0.05 for each of the investments of problem 8.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 104.4C

See similar textbooks

Similar questions

BUS 038 : Business Computatns 11. You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of the invoice. February 5 is day 36.
Marked out of 20.00P Flag questionusing the income summary account for the month ofSiren MarketingAdjusted Trial BalanceMay 31, 2022Account TitleCashDebitCredit$8, 600Accounts Receivable$2, 500Prepaid Insurance$2,700 Accounts PayableUnearned RevenueKirk, Capital$1, 200$1, 800$5, 880Kirk, Withdrawals$1,600Service Revenue$8, 620Advertising Expenselnsurance ExpenseRent Expense Total$790$450$860$17,500 $17,500No comma or dollar sign should be included in the imput icklPrepare the closing entries in the proper order. For transactions that have more than 1 debit or more than 1 deditDebitAccount Title and Explanation Date May 31
JOURNAL Page 42 DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Oct. 23 Administrative Salaries 51 2,307.69 Office Salaries 52 4,723.08 Sales Salaries 53 3,600.00 Plant Wages 54 5,219.60 FICA Taxes Payable - OASDI 20.1 982.72 FICA Taxes Payable - HI 20.2 229.84 Employees FIT Payable 24 871.00 Employees SIT Payable 25 486.63 Employees SUTA Payable 25.1 9.50 Employees CIT Payable 26 613.60 Group Insurance Premiums Collected 27 182.10 Union Dues Payable 28 16.00 Payroll Cash 12 12,458.98 23 Payroll Taxes 56 1,395.19 FICA Taxes Payable - OASDI 20.1 982.72 FICA Taxes Payable - HI 20.2 229.83 FUTA Taxes Payable 21 3.72 SUTA Taxes Payable - Employer 22 178.92 Nov. 4 Employees SIT Payable 25 486.63 Cash 11 486.63 6 Union Dues…
Item5 10points eBook Print References Check my workCheck My Work button is now enabled3 Item 5 On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $22,000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $120,000 on December 31, 2025. A 12% interest rate properly reflects the time value of money in this situation. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021. (Round your final answer to nearest whole dollar amount.)
ACC 122 Fall 2020Comprehensive ProjectBestValue Corporation's Trial Balance at December 31, 20XX is presented below.All 20XX transactions have been recorded except for the items described on the next page.Debit CreditCash $ 109,890Accounts Receivable 28,789Inventory 25,540Debt Investments 0Land 55,674Buildings 215,850Equipment 75,120Allowance for Doubtful Accounts $ 1,027Accumulated Depreciation-Buildings 63,306Accumulated Depreciation-Equipment 16,048Accounts Payable 35,278Interest Payable 0Unearned Rent Revenue 48,900Dividends Payable 0Income Tax Payable 0Bonds Payable 0Discount on Bonds Payable 0Common Stock ($2 par) 29,200Paid in Capital in Excess of Par-Common Stock 44,580Preferred Stock ($60 par) 0Paid in Capital in Excess of Par-Preferred Stock 0Retained Earnings 107,904Treasury Stock 0Cash Dividends 0Sales Revenue 776,068Rent Revenue 0Gain on Sale of Land 0Bad Debt Expense 0Interest Expense 0Cost of Goods Sold 478,542Depreciation Expense 0Other Operating Expenses 53,274Salaries…
Problem # 7 What payment should be made on an invoice in the amount of $9,400 dated January 11 if the terms of sale are 2/15, 1/30, n/45 and the bill is paid on a. January 23? b. February 20?
H#5 My Aunt’s Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March? Feb: $20,000 March: $60,000 April: $70,000
Question Content Area A $36,000, 60-day, 5% note, dated May 1, is received from a customer on account. Assume a 360-day year, the maturity value of the note is a. $36,000 b. $36,300 c. $37,800 d. $300
JOURNAL Page 43 DATE DESCRIPTION POST. REF. DEBIT CREDIT 20-- Nov. 6 Payroll Cash 12 12,296.97 Cash 11 12,296.97 6 Administrative Salaries 51 2,307.69 Office Salaries 52 4,677.85 Sales Salaries 53 3,600.00 Plant Wages 54 4,898.00 FICA Taxes Payable - OASDI 20.1 959.99 FICA Taxes Payable - HI 20.2 224.53 Employees FIT Payable 24 902.00 Employees SIT Payable 25 475.37 Employees SUTA Payable 25.1 9.27 Employees CIT Payable 26 599.41 Union Dues Payable 28 16.00 Payroll Cash 12 12,296.97 6 Payroll Taxes 56 1,362.30 FICA Taxes Payable - OASDI 20.1 959.98 FICA Taxes Payable - HI 20.2 224.51 SUTA Taxes Payable - Employer 22 177.81 13 Payroll Cash 12 1,570.27 Cash 11 1,570.27 1. What is the total gross…
arrow_forward Question Asked Jun 24, 2020 1 views Revenue Cycle DURAPLAST’s sales department consists of 17 full-time and part-time employees. They receive orders via traditional mail, e-mail, telephone, and the occasional walk-in. Because DURAPLAST is a wholesaler, the vast majority of its business is conducted on a credit basis. The process begins in the sales department, where the sales clerk enters the customer’s order into the centralized computer sales order system. The computer and file server are housed in DURAPLAST’s small data processing department. If the customer has done business with DURAPLAST in the past his or her data are already on file. If the customer is a first-time buyer, however, the clerk creates a new record in the customer file. The system then creates a record of the transaction in the open sales order file. When the order is entered, an electronic copy of it is sent to the customer’s e-mail address as confirmation.A…
PROBLEM IV Journalize the following transaction: Mar. 1 Received a 60-day, note for $24, 000 dated today from Toy Co. on account Apr. 30 Received amount due on note above. Apr. 30 Received a 90-day , 10% note for $4,800, dated April 30, from Bear Co. on account. May 10 Discounted the note dated April 30 at Third National Bank at a discount rate of 10%.
ACC 370 SPRING 2021 QUICKBOOKS HANDS ON CLASS EXERCISE SECTION NOW YOUR TURN March 2021 1 Mr. Jim Doha invested additional $75,000 cash in the real estate agency. Paid advertising bill for February $1,400 Sold house for $250,000 and collected commission of $15,000 4 Purchased office supplies for cash, $2450. 5 Purchased additional office supplies on account, $550 6 Sold a house and collected a $46,000 commission. 8 Paid gas bills, $240 15 Paid the salary of the office secretary, $850. 17 Sold a building lot and earned a commission, $16,500. 20 Mr Jim Doha withdrew $3,000 from the business to pay personal expenses 21 Sold a house and collected a $15,500 commission. 22 Paid gas bills, $220. 24 Paid $960 to repair automobile 28 Paid the salary of the office secretary, $1350 30 Paid the March telephone, $520.…