economic life of the generator.
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- FLY corporation manufactures stamp pad that sells for Php 65.00 each. It costs FLY corporation Php 35,000.00 per year to operate its plant. The sum includes rent, depreciation charges on equipment, and salary payments. If the cost to produce one stamp pad is Php 50.00, how many stamp pad must be sold each year for FLY to avoid taking a lossAn industrial firm can purchase a certain machine for $40.000. A down payment of S-1.000 is required. and the balance can be paid in five eq ual year-end installments at 7% interest on the unpaid balance. As an alternative. the machine can be purchased for $36,000 in cash. If the firm 's MARR is 10%, determine which alternative should be accepted using the annual- equivalence method.The owner of an industrial warehouse receives US$700,000. per year for leases. Monthly operation and maintenance expenses are US 160D0. The remaining useful life of the building is 9 years, at the end of which the building can be sold for US$5,000.0G0 The building has already been fully depreciated, also consider the 15% employee participation and a tax on 10% rent.The project to convert the infrastructure into an office complex that will generate annual revenues of US$600.0G0 and annual operation and maintenance costs representing 35% of profits is being studied.To do this, U5 1,000,000 must be invested in the remodeling of the building that lasts two years (equal expense each year). The total of the improvements can be depreciated over 7 years straight line, with no residual value. The remodeling will allow the building to be used for 7 years, at the end of which it can be sold for 3,000,000 Perform incremental cash flow in excel and graph with bar chart.
- ABC is planning to expand its operations and wants to install Plant and Machinery (PM) costing Rs. 75 million. Direct cost including accessories and installation is estimated at Rs. 5 million. Customer has decided to contribute Rs. 20 million and the remaining amount will be contributed by XYZ Islamic Bank (the bank). PM was purchased on April 1, 2019. The installation process of PM would take 2 months. The tenure of Musharakah financing was agreed to be 5 years. Rentals will be paid biannually. Bank’s share will be divided into units and ABC will undertake to purchase the bank’s units biannually to become the sole owner of the asset. Questions: Identify the nature of contract (as practiced in IBs) Is there any difference between this contract and permanent Musharakah? Explain. Devise the Process flow for the transaction. At what time rentals will be started?A firm can purchase a centrifugal separator (5-year MACRS property) for$17,000.The estimated salvage value is$3,000after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be$1,700.These O&M costs are projected to increase by$1,500per year each year thereafter. The income tax rate is23%and the MARR is12% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis?An asset with its purchasing price of Rs. 530,000 was imported from its manufacturing place holding Rs. 80,000 as carrying cost. Installation charges for that asset are Rs, 27,500. Tax paid to the government is 30% of its total cost till it gets ready and useful for business operations. Manager’s fee was also paid of Rs. 30,000. Annuity value for one rupee is 0.3178. Interest rate was given at 8%. Depreciate the asset for 5 years using SLM annuity method
- De La Salle University buys a steam generator for P250,000. The shipping and installation fees amount to P25,850. The manufacturer indicates that the life span of the system is 20 years. The system can sell at P10,000 at the end of its life. Determine the depreciation charge during the 12th year, and thebook value at the end of 14 years by the (a) Declining balance method, (b) DDB method, (c) sinking fund method given interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.The company buys a solar panel unit for P105,000. The shipping and installation fees amount to P15,000. If the unit is expected to last for 15 years, with a salvage value of P3,000, what is the depreciation charge during the 12 th year, and the book value at the end of 14 years by the (a) Declining balance method, (b) DDB method, (c) sinking fund method g iven interest rate at 12.5 percent, and (d) Sum-of-the-Years Digit (SYD) Method.Thorne Estates Limited advertises and sells residential property on behalf of itscustomers. The company has been in business for only a short time and ispreparing a cash budget for the first four months of 2021. Expected sales ofresidential properties are as follows:2020 2021 2021 2021 2021Month Dec Jan Feb Mar AprUnits Sold 10 10 15 25 30The average price of each property is £180,000 and Thorne Estates charges a feeof 3% of the value of each property sold. Thorne Estates receives a 1% in themonth of sale and the remaining 2% in the month after sale.The company has nine employees who are paid on a monthly basis. The averagesalary per employee is £35,000 per year. If more than 20 properties are sold in agiven month, each employee is paid in that month a bonus of £140 for eachadditional property sold.Variable expenses are incurred at the rate of 0.5% of the value of each propertysold and these expenses are paid in the month of sale. Fixed overheads of £4,300per month are paid in the…
- Scarflovers approached Al-Amin Bank to apply for financing on five machines for scarfs. The purchase price of one machine is RM500,000. The shipping and takaful cost are RM200,000. The port handling expenses is RM100,000. Al-Amin Bank agreed to finance the transaction on the basis of Murabahah (Murabahah to purchase orderer) at a profit margin of 8% per annum for five years. Scarflovers paid 10% of the purchase price of one machine Hamish Jiddiyyah to Al-Amin Bank. The company needs to pay the installment every October for five years. However, in the second year and the third year, the company paid in November. The company agreed if they fail to pay on time, a penalty of 1% of the receivable amount will be charged for late payment. Following the guideline of the Shariah Advisory council (SAC), RHB Islamic Bank will disburse the late payment charges to charity. (a) You are required to prepare journal entries for Al-Amin from Year 1 until Year 4 only. (b) Murabahah financing is…XYZ Builders Ltd. need to acquire the use of a crane for their construction business and are considering buying or leasing a crane. The crane costs Rs.1000 subject to SLM depreciation with salvage value 0 at the end of 5 years. In contrast, the lease rent is Rs.3000 p.a. to be paid in advance each year for 5 years.XYZ Builders ltd can raise debt at 20% payable in equal annual instalments, each instalment due at the beginning of the year. Tax applicable in 35%. Should it lease or buy the asset?LEW Company purchased a machine at a price of $100,000 by signing a note payable, which requires a single payment of $123,210 in two years. a. Assuming annual compounding of interest, what rate of interest is being paid on the loan? Use Excel function Rate to calculate the rate. b. What would be the purchase price of the machine had LEW negotiated a single payment of $120,000 in two years, using the same effective rate? Use excel only..
