Dangerfield Industrial Systems is trying to determine which one of two conveyor belt systems to be purchased.   tax rate of 34% and required return =11% System A B Investment cost 430,000 570,000 Life [years] 4 6 Annual operating cost [pretax] 110,000 98,000   Both systems to be depreciated using straight line to zero value over useful life and will have no salvage value.   Which project should if chosen, if system is NOT replaced at the end of useful life?

Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…

A: Loan is repaid in 5 years, on monthly basis. No. of repayments = 5yrs*12 = 60 Total Repayment = No.…

Q: answer these two questions. Thank you! 1. Determine the compound interest rate per year equivalent…

A: Simple interest rate is interest rate without the impact of compounding of interest. But effective…

Q: eBook Profit or Loss on New Stock Issue Beedles Inc. needed to raise $14 million in an IPO and…

A: As per the given information: Outstanding shares- 3,000,000 shares Proceeds to Beedles Inc -…

Q: In class we use this formular can you calculate the second question with that? Btw you can type on…

A: WACC: It is the average cost of capital of the business and is used as a discount rate to value the…

Q: For a 12-year service at a farm, two machines are being taken into consideration. The favorable rate…

A: Annual cost is the estimated amount which the firm has to spend each year based on prevailing…

Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…

A: a) For an investment of 14000 per year, for 30 years, at 9% interest rate, amount accumulated will…

Q: anaka Machine Shop is considering a 4-year project to improve its production efficiency. Buying a…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: The more times in a year that interest is compounded, the more money there is after one year. A)…

A: Interest is the amount charged on amount invested for the period it was invested. It can be simple…

Q: Eric is interested to invest in shares. However, he realizes there would be a risk if he invests in…

A:

Q: The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new…

A: Initial Investment  $ 40,000.00 MACRS   Year Depreciation 1 33% 2 45% 3 15% 4 7%…

Q: Wilde Software Development has a 9% unlevered cost of equity. Wilde forecasts the following interest…

A: As per the given information: Unlevered cost of equity - 9% Growth in interest expenses - 5% after…

Q: You ask someone about their preferences over the following pairs of lotteries: Lottery A Lottery B…

A:

Q: Anna-Mae Inc is going to issue a bond whereby they would pay a coupon with rate equal to the markets…

A: Price of bond depends on the coupon rate ,yield to maturity and period of maturity of bond. Price of…

Q: A 90-day bank bill with a face value $100,000 was purchased with a yield of 4.00%. If it is sold…

A:

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: Part-A Borrowed Amount is $5000 Time period is 2 years Interest rate is 7% Per annum To Find:…

Q: al Explain the income of an FRA dealer and how they manage their exposure to interest rate risk and…

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

Q: b) A bond was issued on 1 July 2018. Below is the timeline of all cash flows payable by the bond…

A: A bond is a debt instrument that provides periodic interest to the owner and the face value at…

Q: Yummy Foods is considering a new salsa product whose data are shown below. The equipment that would…

A: Here, Net investment cost = $65,000 Annual pre-tax cannibalization cost = $5,000 Depreciation rate =…

Q: You shorted a call option on Intuit stock with a strike price of $34. When you sold (wrote) the…

A: Strike Price of $34 Premium received is $6 Time to expiry is 3 months To Find: Payoff  profits

Q: Joe wants to own a home in the future. He asks you describe an advantages and disadvantage of a FRM…

A:

Q: Which investment criteria answers the question: "How quickly do we recover our investment, in…

A: Pay back Period is that under which we will received / Recover the investment amount for starting…

Q: Which of the following are purchased funds? A) Retail time deposits B) Repurchase agreements C)…

A: Purchase funds- It is a type of fund that allows the company to redeem its securities at a discount…

Q: A company needs to raise $880 million (This is the gross amount to be raised including the…

A: There are many methods of raising money from the market and also underwriter charges are different…

Q: 7) You have a balance of $10,000 for your tuition on your credit card and you make no further…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: On July 1, your company has 400,000 shares of $60 par value common stock that are issued and…

A: Stock Split: A stock split occurs when a company reduces the face value of its shares. This has the…

Q: How many years will it take for ​$500 to grow to ​$1039.50 if​ it's invested at 5 percent…

A: FV or Future value = PV or present value * (1+interest rate)^n To solve for n we can use the NPER…

Q: The​ risk-free rate is 3.7% and you believe that the​ S&P 500's excess return will be 11​% over the…

A: CAPM or Capital Asset Pricing Model is the formula that represents the relationship between the…

Q: There are several different terms to that describes different measures of bond yield. The L rate of…

A: Yield to maturity is the yield the investor earns if the bond is held to maturity. Dividend yield is…

Q: B2B Co. is considering the purchase of equipment that would allow the company to add a new product…

A: Net present value is the difference between the present value of cash flow and initial investment…

Q: b) Vivienne has $10,000 cash she can use for investments. Company A's share has an expected return…

A: Portfolio return can be calculated by multiplying assets weight with expected return Portfolio…

Q: if $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: efer to the photo below. Please provide a complete and correct solution.

A: i) Inventory turnover-This  ratio shows the number of times a business replaces its stock of goods…

Q: If $27895 is borrowed for 5 months and P688 is paid, then the annual simple interest rate is…

A: Simple interest is one of the form of interest in which interest is charged on original investment…

Q: Assume that you borrow 50,000 IPY under the system of 596 yearly compound interest. (1) If you repay…

A: Loans are to be paid by the equal and annual payments that carry the payment for principal and…

Q: how do I work out the interest paid using the PV formula without using financial calculator or…

A: Loan are paid by monthly payments that carry the payments for interest and payment for principal…

Q: oman just retired, and has $700,000 to invest. A very safe Certificate of Deposit (CD) account pays…

A: Let x = the CD amount and y = the bond amount.   As per case, x+y = 700000  y = 700000  - x

Q: An analyst at PJ Dealers estimates that the CAPM beta for ZLX stock is 1.9. Given this information…

A: Given: Risk free rate = 2% Market rate = 12% Beta = 1.9

Q: Problem 3. Larga Industries has outstanding $1,000 par value bond with an 8% coupon interest rate.…

A: Bonds are debt instruments issued by companies. Bonds pay periodic coupons and value of a bond is…

Q: The risk of a portfolio is the variance of its return. However, the variance of the returns of an…

A: The risk of a security or portfolio is measured in terms of variance. Variance is the measure of…

Q: Present-value comparison) You are offered ​$100,000 today or ​$340,000 in 15 years. Assuming that…

A: We need to calculate the present value of both the alternative in order to understand which…

Q: A landowner who sells the mineral rights to a parcel of land while maintaining surface rights…

A: 1.A mineral right is a property right that may be sold, transferred, or leased in the same way that…

Q: A4) Finance The fraud-on-the-market theory is used in some cases under Rule 10b-5 as an indirect way…

A: The fraud-on-the-market theory- An investor who have been defrauded can bring a securities claim…

Q: c) The net cash flow for two projects, Coffee Shop and Hair Salon, are as follows: Year Coffee Shop…

A: The NPV method is used for measuring the profitability of a project by considering the time value of…

Q: A6) Finance consider a project that will cost $95,000 today and is projected to bring in $55,000 in…

A: The profitability index (PI), also defined both as value investment ratio (VIR) or profit investment…

Q: A Firm reported year-end cost of goods sold of $10 million. It listed $2 million of inventory on its…

A: Days in inventory measures the number of days the inventory stays on the premises of the firm.

Q: B2B Co. is considering the purchase of equipment that would allow the company to add a new product…

A: As per the given information: Cost of equipment purchased - $376,000 Life of equipment - 8-year life…

Q: years, while most of the other project's cash flows occur in the later years. The two NPV profiles…

A: NPV is net present value is the difference between the present value of cash flow and initial…

Q: 1 years' time at 60 sol. Assume the current spot rate for 1 US dollar is 4 sol and the dollar is…

A: The net return on stock/ any security for a year is calculated as shown below.         Net…

Q: Banking. Liam's chequing account had a balance of $3,500.00 on September 1st. After reviewing his…

A:

Q: Explain in details the rationale and the treatment of change in net working capital items during the…

A: NPV:  When performing financial research to assess the viability of investing in a project or…