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Q: Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive…
A: Formulas:
Consider the three mutually exclusive projects that follow. The firm’s MARR
is 10% per year. Solve, a. Calculate each project’s PW. b. Determine the
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- Q - Akshu Cantrell Cash Flow: Year 5, Cash Flow $12,000 Year 4, Cash Flow $12,000Year 3, Cash Flow $11,000 Year 2, Cash Flow $11,000 Year 1, Cash Flow $10,500 Fuller Cash Flow: Year 5, Cash Flow $15,000 year 4, Cash Flow $14,000Year 3, Cash Flow $12,500 Year 2, Cash Flow $13,500 Year 1, Cash Flow $12,000 A home remodeling company is considering investing in two different house flips, Cantrell and Fuller. The company would like your help in determining which flip they should invest in. Assume the company uses a discount rate of 9 percent to analyze its projects. Use the Tableau Dashboard to assist in your analysis. Required: Calculate the net present value (NPV) of each house flip. Based on the NPV, which house(s) should the company pursue? Now assume the company has a limited amount to invest and must decide between Cantrell and Fuller. Which house should they select based on the NPV analysis?39.ABC sold land that cost $ 10,000 for $ 12,000. ABC will report: Select one: a. Net operating cash flow of $ 2,000. b. Net cash flow from financing of $ 2,000. c. Net cash flow from financing of $ 12,000. d. Net investment cash flow of $ 12,000.ACCOUNTS PAYABLE P60,000 ACCOUNTS RECEIVABLE P10,000 BUILDING ? CASH P30,000 EQUIPMENT P70,000 ARLYN VILLANUEVA, CAPITAL ? LAND P70,000 IF THE BALANCE OF THE VILLANUEVA, CAPITAL ACCOUNT WAS P210,000, WHAT WOULD BE THE BALANCE OF THE BUILDING ACCOUNT? P250,000 P40,000 P90,000 210,000
- Dec. 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…part 3 4 solution needed Year Net cashflows 0 -575,000 1 £125,000 2 £248,000 3 £176,000 4 £146,000Ma4. 1. Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.
- QUESTION 2 (20) INFORMATION:Vista Limited intends purchasing a new machine and has a choice between the following two machines:Equipment A Equipment BInitial cost R220 000 R240 000Expected useful life 5 years 5 yearsScrap value Nil NilExpected net cash inflows: R REnd of:Year 1 55 000 70 000Year 2 60 000 70 000Year 3 62 000 70 000Year 4 60 000 70 000Year 5 70 000 70 000The company estimates that its cost of capital is 12%.Required:2.1 Calculate the Payback Period of both equipment. (Answers must be expressed in years, months and days). (4)2.2 Calculate the Accounting Rate of Return (on initial investment) for both equipment A and B. (Answers must be expressed to 2 decimal places). (5)2.3 Calculate the Net Present Value of each equipment. (Round off amounts to the nearest Rand. (6)2.4 Calculate the Internal Rate of Return of Equipment B. (5)Question 1 On March 1, ABC Co. began construction of a small building. The following expenditures were incurred for construction: Date Expenditures 3/1/2022 $ 300,0004/1/2022 400,0005/1/2022 620,000 6/1/2022 1,020,0007/31/2022 310,000 The building was completed and occupied on August 1. To help pay for construction $400,000 was borrowed on March 1 on a 12% three-year note payable. The only other debt outstanding during the year was a $200,000, 10% note issued two years ago. (a). Calculate the weighted-average accumulated expenditures. (Hint: using the following four-column schedule to calculate) Date Expenditures Capitalization Period Weighted-Average Accumulated Expenditures…XYZ Company Balance Sheet December 31, 20X2 Dec. 31, 20X2 Dec. 31, 20X1 Inc./Dec. Cash 25,000 22,000 3,000 Accounts Receivable 30,000 10,000 20,000 Inventories 23,000 19,000 4,000 Investments 15,000 40,000 (25,000) Land 60,000 0 60,000 Equipment 88,000 54,000 34,000 Accumulated depreciation--Equipment (8,000) (5,000) 3,000 233,000 140,000 Accounts payable 16,000 18,000 (2,000) Accrued expenses 20,000 3,000 17,000 Dividends payable 25,000 14,000 11,000 Common stock 120,000 80,000 40,000 Paid-in capital in excess of par 20,000 15,000 5,000 Retained earnings 32,000 10,000 22,000 233,000 140,000 a. The investments were sold for $24,000 cash. b. Equipment and land were acquired for cash. c. There…
- Question 2 20X6: Jane produced the following trial balance as at 30 June 20x6 $000 $000 Land at cost 2,160 Building at cost 1,080 Plant and equipment at cost 1,728 Intangible assets 810 Accumulated depreciation-30.6.20x5 Building 432 Plant and equipment 504 Interim dividend paid 108 Receivable and payable 585 Cash and bank balance 41.4 Inventory as at 30.6.20x6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses 946.8 Retained earning b/f 891 Sales revenue 9480.6 Cost of sales 5909.4 Ordinary share of 50p each 2160 Share premium account 432 The following information is available: 1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the Land and £972,000 in the Buildings. This has not yet…Question 2 20X6: Jane produced the following trial balance as at 30 June 20x6 $000 $000 Land at cost 2,160 Building at cost 1,080 Plant and equipment at cost 1,728 Intangible assets 810 Accumulated depreciation-30.6.20x5 Building 432 Plant and equipment 504 Interim dividend paid 108 Receivable and payable 585 Cash and bank balance 41.4 Inventory as at 30.6.20x6 586.8 Taxation 14.4 Deferred tax 37.8 Distribution cost 529.2 Administrative expenses 946.8 Retained earning b/f 891 Sales revenue 9480.6 Cost of sales 5909.4 Ordinary share of 50p each 2160 Share premium account 432 The following information is available: 1) A revaluation of the Land and Buildings on | July 20X5 resulted in an increase of £3,240,000 in the Land and £972,000 in the Buildings. This has not yet…Exercise 9-03 a On March 1, 2022, Sandhill Co. acquired real estate, on which it planned to construct a small office building, by paying $85,000 in cash. An old warehouse on the property was demolished at a cost of $9,200; the salvaged materials were sold for $1,900. Additional expenditures before construction began included $1,400 attorney’s fee for work concerning the land purchase, $5,000 real estate broker’s fee, $8,900 architect’s fee, and $15,000 to put in driveways and a parking lot.(a) Determine the amount to be reported as the cost of the land. Cost of land $Enter a dollar amount