EOY Cash Flow EOY Cash Flow 0 -S1,400 $O 8 $600 1 9 $700 $500 10 $800 3 $500 11 $900 4 $500 12 -$1,000 5 $500 13 -$2,000 6 $0 14 -$3,000 7 $500 15 $1,400
Q: Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR…
A: The profitability index is a methodology adopted in the capital budgeting techniques that helps in…
Q: Imagineering, Inc., is considering an investment in CADCAM compatible design software with the cash…
A: Present worth means NPV of the project or NPV of profit generate from project during the life of the…
Q: lustine Global Info Tech records the following cash flows at the end of each year for a project. If…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 10700 OMR and…
A: Profitability index is a measure of capital budgeting decision which aims to analyze whether the…
Q: Assume S00 000 is avialable for investment and MARR=t0% per year if atemative A would eam 35% per…
A: Here, Available funds for investment = $90,000 MARR = 16% Investment A return = 35% Investment A…
Q: Sungsam Electronics has to choose between two investment options Each alternative involves an…
A: Initial Investment = 100,000 Cash Flows: Year Cash Flow - A Cash Flow - B 0 -100,000 -100,000…
Q: A cash flow sequence has a receipt of $10,000 today, followed by a disbursement of $9,000 at the end…
A:
Q: d. You are given two investment alternatives to analyse. The cash flows from these two instruments…
A: The present value of the annuity factor is used when there is an equal series of cash flows and the…
Q: Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6…
A: Here, Cash Flow in Year 0 is -P30,000 Cash Flow in Year 1 is -P 19,000 Cash Flow in Year 2, 3 and 4…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the…
A: The profitability index shows how much time is taken to recover the initial investment made in the…
Q: ou are given three investment alternatives to analyze. The cash flows from these three investments…
A: Let CFn = Cashflow in year n Discount rate (r) = 13%
Q: Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash…
A: Net Present Value (NPV): Net present value is computed by discounting all the cash inflows and…
Q: You are given three investment alternatives to analyze. The cash flows from these three investments…
A: The current value of a future sum of money or stream of cash flows at a predetermined rate of return…
Q: Hsung Company accumulates the following data concerning a proposed capital investment: cash cost…
A: Net present value = Present value of cash inflows - Initial investment. If the net present value is…
Q: what is the present value of this investment?
A: Present Value = C x [1 – [ (1 / 1 + r)^n] / r] Here, C = Cash Flow per period i.e. $21000 r =…
Q: Assume a $50,000 investment and the following cash flowa for two aleternatives.. Year…
A: given, year A B 0 -50000 -50000 1 10000 20000 2 11000 25000 3 13000 15000 4 16000 0 5…
Q: what is its present value? Its future value?
A: Amount of the future cash stream at a given rate when discounted gives the present value (PV) of…
Q: Hicks Company is considering an investment opportunity with the following expected net cash…
A: Net present worth (NPV) is the distinction between the current estimation of money inflows and the…
Q: Justine Global Info Tech records the following cash flows at the end of each year for a project. If…
A: Present Value is the current value of all the cash flows which is to be received in the future which…
Q: Quilts R Us (QRU) is considering an investment in a new patterning attachment with the cash flow…
A: The present value is the worth of money that has to be paid or received in the future.
Q: The incremental cash flows for alternatives P and Q are shown. Determine which should be selected…
A: Internal rate of return method: Internal rate of return method is one of the capital investment…
Q: A company, which uses a MARR of 896, has been presented an investment opportunity that is summarized…
A: The Internal rate of return is the rate at which the net present value is zero.
Q: s (incomes) other than the initial investment is PW = $13,000 at MARR = i%. If MARR changes to (i +…
A: The calculation of future value has its benefits, it is important to remember that future value does…
Q: Jupiter is considering investing time and administrative expense on an effort that promises one…
A: The question is based on the calculation of annual worth of cash flows at different time interval .…
Q: Morrisey Company has two investment opportunities. Both investments cost $6,900 and will provide the…
A: Net present value (NPV): Net present value is defined as the summation of the present value of cash…
Q: A firm has the following investment alternatives. Each one lasts a year. C Investment A Cash inflow…
A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…
Q: Jupiter is considering investing time and administrative expense on an effort that promises one…
A: Information Provided: MARR = 12% Year 0 cashflow = -$2 Year 1 cashflow = -$12 Year 2 cashflow = -$14…
Q: ARCABE Enterprises is trying to select the best investment from among four alternatives. Each…
A: Here, Discount Rate = 10% To Find: a) Discounted payback period =? b) Net present value =? c)…
Q: Justine Global Info Tech records the following cash flows at the end of each year for a project. If…
A: Capital budgeting: It is a method of evaluating the projects which required huge investments and…
Q: Find the profitability index for Shanfari Company if the initial investment is 7900 OMR and the cash…
A: Profitability index can be calculated by dividing the present worth of future cash flows and the…
Q: Jiminez Company has two investment opportunities. Both investments cost $5,000 and will provide the…
A: Present value: It can be defined as today’s worth of an investment that will be received in the…
Q: Find the Payback period for Oman Tiles company if the initial investment is 25000 OMR and the cash…
A: Since more than one question is asked at a time, the answer for first question is only provided as…
Q: Dalvi Incorporated is considering a new Investment. The table below lists the cash flows. Year Cash…
A: The payback period is the time period in which the Initial amount is fully recovered from future…
Q: Three mutually exclusive investment alternatives are being considered. The estimated cash flows for…
A: Note: This question has multiple subparts. The first three have been answered below.
Q: You are interested buying a business and the current owner is asking $180,000 for it. You require a…
A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…
Q: What is the minimum value of x such that the investment is attractive based on annual worth if…
A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…
Q: A company is considering a R250 000 investment with the following cash flows Year 1 : R30 000…
A: a) Working note:
Q: Cannonier, Inc., has identified an investment project with the following cash flows: Year Cash Flow…
A: In this question we need to compute the future value of stream of cash flows after 4 years. Future…
Q: Smolinski Company is considering an investment that will return a lump sum of $500,000 five years…
A: solution: Future Value (FV) 500000 Period (Nper) 5 Interest rate (Rate) 4% Present Value…
Q: Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $115,000 in a…
A: NPV - it is the difference of present value of cash inflow and present value of cash outflow at cost…
Q: Justine Global Info Tech records the following cash flows at the end of each year a project. If the…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR…
A: Profitability index helps in determining the attractiveness of a project. It is calculated by…
Q: Find the profitability index for Oman Clothing Company if the initial investment is 700 OMR and the…
A: The profitability index shows how much time is taken to recover the initial investment made in the…
Quilts R Us (QRU) is considering an investment in a new patterning attachment with the cash flow profile shown in the table below. QRU’s MARR is 13.5%/year. Solve, a. What is the annual worth of this investment? b. What is the decision rule for judging the attractiveness of investments based on annual worth? c. Should QRU invest?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- 6. Identify the most relevant transaction for this entry:Assets Owners’ Equity Liabilities+50 000 0 +50 000 A. Bought inventory on credit R50 000.B. Sold inventory on credit R50 000.C. Sold inventory on credit R50 000.D. Cash paid to creditors R50 000.is: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciation—equipment (99,110) (84,320) Total assets $1,211,760 $901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common stock, $1 par 202,000 102,000 Paid-in capital: Excess of issue price over par—common stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity $1,211,760 $901,680 The income statement for the year ended December 31, 20Y9, is as follows: Sales $2,023,898 Cost of goods sold 1,245,476 Gross profit $778,422 Operating…Sales = $1,000; Cost of Goods Sold = $500; Depreciation Expense = $100; Administrative Expenses = $100; Interest Expense = $20; Marketing Expenses = $80; and Taxes = $100. The Co's operating income (EBIT) is equal to A) $500. B) $400. C) $310. D) $220.
- A2 aii Use the following information for Delta Corporation: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a constant…A2 1ai Use the following information for Delta Corporation : Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Accounts receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of goods sold, all assets (current and fixed), and accounts payable will all remain a…Sales = $1,000; Cost of Goods Sold = $500; Depreciation Expense = $100; Administrative Expenses = $100; Interest Expense = $20; Marketing Expenses = $80; and Taxes = $100. The Co's net income is equal to A) $100. B) $150. C) $220. D) $200.
- Net Sales 36000 Commission received 6430 Interest received 3570 Cost of goods sold 7400 Dividends received 2220 From the above information the total income will be: a.OMR 41280 b.OMR 42820 c.OMR 48220 d.OMR 40820 Fast plz***********information to answer question 5. Cash R10 000 Accounts receivable(debtors control) R30 000 Inventory R80 000 Prepaid insurance R 6 000 Fixed assets R200 000 Accounts payable (creditors control) R30 000 Income received in advance R25 000 Wages payables R5 000 Long-term liabilities R70 000 Capital R196 000 Calculate the acid test ratio. A. 0.83:1 B. 1:1 C. 1.3:1 D. 0.76:1A2 1g May I please have the answer in formula form and not in excel. Thx:) Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of…
- QWC 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 MMC Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52 Please interpret the ratio for both the companies. Not required to explain the theory just interpret the values for the following: 1) Current Ratio 2) Quick Ratio 3) Operating cash flow ratioDec. 31, 20Y9. Dec.31, 20Y8 Cash $155,000 $150,000 Accounts Receivable $450,000 $400,000 Inventories $770,000 $750,000 Investments 0 $100,000 Land $500,000 0 Equipment $1,400,000 $1,200,000 Accumulated Depreciation Equipment ($600,000) ($500,000) Total Assets $2, 675,000 $ 2,100,000 Dec. 31, 20Y9 Dec.31, 20Y8 Accounts Payable $340,000 $300,000 Accrued Expense Payable $45,000 $50,000 Dividends Payable $30,000 $ 25,000 Common Stock $4 par $700,000 $ 600,000 Paid in Capital in excess of par-Common Stock $200,000 $175,000 Retained Earnings $ 1, 360,000 $ 950,000 Total Liabilities & Stockholders Equity $ 2, 675,000. $ 2, 100,000 Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows: The investments were sold for…Particulars 31st Mar' 19 Amt (Rs) 31st Mar' 20 Amt (Rs) Land and Building 3600000 3600000 Cash 400000 320,000 Sundry Debtors 640000 800,000 Temporary Investments 400000 640,000 Stock 3680000 4320000 Prepaid Expenses 560000 24000 Plant and Machinery 1920000 3096000 Total Assets 11200000 12800000 Current Liabilities 1280000 1600000 Loans 3200000 3200000 Capital 4000000 4000000 Retained Earnings 936000 1624000 Statement of Profit for the Current Year 1st Apr to 31st Mar' 20 : Amt (Rs) Sales 8000000 Less: Cost of Goods Sold -5600000 Less: Interest -320000 Net Profit 2080000 Less: Taxes @ 50% -1040000 Profit after Tax 1040000 Profit Distributed 440000 Calculate Gross Profit Ratio Return on Equity