Majestic Aircraft Corporation is considering purchasing composite wing fixtures for the assembly of its signature aircraft. The cost of the assembly system is $3 million with life expectancy of 10 years, annual operating cost of $200,000 with zero salvage value. MAC anticipates a stream of $1,000,000 in revenue per year for 10 years from this project. Using annual worth analysis and assuming MAC uses a MARR (interest rate) of 10 percent, is this investment economically justified? What is the Net Annual Cash Flow? A. $750,000 B. $855,000 C. $900,000 D. $800,000

Q: The Closing the Gaps initiative by the Texas Higher Education Coordinating Board established the…

A: The yearly rate of increases can be computed as the compounded annual growth rate (CAGR).

Q: 1.886 1.859 1.833 | 1.808 | 1.783 | 1.759| 1.736 1.713 1.690 1.668 | 1.647 1.626 1.6051.585 1.566 |…

A: Present Value = Annual Installment received * PVIF( r, n) = 53,000 * PVAF( 10%, 20) ( from annuity…

Q: 5. Suppose a ten-year bond with face value $1000 and semiannual coupons has a price of $1,071.06 and…

A: The coupon rate is the annual income an investor can expect to receive from a bond. It is determined…

Q: TRUE OR FALSE: Write TRUE if the statement is correct; incorrect, write FALSE. 1. Managers and…

A: Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Q: 3. Which of the following statements is most correct?    a. Trade credit is provided to a business…

A: A creditor is a legal entity (individual or institution) that gives credit by giving another legal…

Q: Explain or illustrate before-tax cost of debt and after-tax cost of debt.

A: In finance the cost of debt is the effective rate that a company pays on its debt. A company can…

Q: Ja. A company made an additional (incremental) income of $10,000 during the last week of the year.…

A: The main source of income for government is the tax collected from both individuals and businesses.…

Q: A debt of ​$40,000 is repaid over 12 years with payments occurring annually. Interest is 4%…

A: Effective annual interest rate If the interest rate has compounding other than annually, the…

Q: A. Positive (increase å increase)

A: Risk is an uncertainty of mishappening which is affected by something which human values such as…

Q: 11. Heinz Inc expects to generate earnings over the next five years of Php 50,000.00; Php 60,000.00;…

A: Value of the firm can be calculated by using capitalisation earning method. For this we need to use…

Q: A machine now in use, which was bought five years ago for $4,000, has been fully depreciated. It can…

A: The Opportunity cost is the benefit which has been lost due to the selection of another alternative…

Q: What’s the difference between order and volume discounts? Justify your answer.

A: Manufacturers and sellers utilize volume discount pricing, or volume discounting, to reward…

Q: 2. (a) The stock of Huesca Hardware trades for €142 per share. The share prioe has price volatility…

A: Black Scholes Model With stock current price (S), call option strike price (K), standard deviation…

Q: Mike joins a savings program where he deposits $1000 at the beginning of he will earn a perpetuity…

A: Amount deposited begining of the year is $1000 Perpetuity amount is $63000 Time period of deposit is…

Q: 3b. A company made an additional (incremental) income of $10,000 during the last week of the year.…

A: Tax can be defined as an amount paid to the government on the income. It is a compulsory…

Q: .Interest rate per month,%? 2.Amount paid at the end of 3 years. 3.Amount to be paid at the end of 5…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: How much will deposits of $35 made at the end of each month amount to after 12 years if interest is…

A: Amount deposited each month = $ 35  Amount deposited in each quarter = $35*3 = $105 = PMT Number of…

Q: What should Chris be willing to pay for a preferred share of stock that promises to pay him a cash…

A: Formula Stock price = D1/(R-G) Where D1- Expected dividend i.e. $55 G - Growth rate i.e. 3% R -…

Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…

A: Given: Year 2014 2015 2016 2017 2018 2019 Price $22.00 $58.50 $130.00 $207.00 $97.00 $27.50…

Q: A $5000 bond bearing interest at 3.4% payable semi-annually is due in 12 years. Money is worth 8.0%…

A: Coupon rate is the rate that provides the amount of payment to be made to the holder at the…

Q: Find the due date ( actual time ) and Due date ( approximate time )

A: Due date refers to the date at which any event or payment will due. Due date of loan refers to the…

Q: Consider the two investments with the following sequences of cash flows. At Marr of 15%. What is the…

A: IRR refers to the annualized rate of return for a given project. Higher the IRR, better the…

Q: Mr. Jefferson had a new heating system installed in his office. The balance owing to the heating…

A: Given, Balance owed is $22,000 Nominal rate is 3.08%

Q: The omega venture group needs to borrow to finance a project. Repayment of the loan involves…

A: A loan is an agreement where one party forwards an amount to the other party in return for payments…

Q: Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write…

A: Because you have asked question with multiple parts (MULTI PART) , we will solve the first 3 parts…

Q: 18. The average monthly budget for Camille and Zohan is shown. Camille Zohan INCOME (S) 4100 3900…

A: Solution:- Variable expenses are the expenses which vary according to the use, while fixed expenses…

Q: How much approx., would be the FW of $30,000 be worth after 50 years if a rate of 10%/yr (compounded…

A: Solved using Financial Calculator  PV = +/- 30,000 N = 50*12 = 600 I/Y = 10/12 = 0.8333 CPT FV =…

Q: monthly payments for th

A: Monthly payment refers to the amount which is due and paid in regular intervals to an organization…

Q: 8. Calculate the total annual housing costs for a couple with bi-weekly mortgage payments of…

A: Since Question 8 is clear in the picture, so the following solution is for Question 8 only. Solution…

Q: What is the present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M…

A: Present value of annuity can be calculated as: = Annuity * Present Value annuity factor (i%, n…

Q: Consider an asset that costs $369,600 and is depreciated straight-line to zero over its 7-year tax…

A: cost of the asset = $369,600 Depriciation each year =$369,600/7 = 52800 Value of asset after 4 years…

Q: Which among these options for Mr. D is the best for him to pay the least? A. higher rate B. pay in…

A: We know that Higher interest will lead to higher payment and lower interest will lead to lower…

Q: what is the dilemma faced by health care finance managers in light of the ultimate goals of health…

A: Solid financial performance is linked to a better patient-reported experience of treatment, which is…

Q: The yield on 1-year Treasury securities is 6%, 2-year securities yield 6.2%, 3-year securities yield…

A: Spot rate in year 1 (S1) = 6% S2 = 6.2% S3 = 6.3% S4 = 6.5%

Q: C.) Which of the following bank accounts has the highest effective annual return? a. An account that…

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: 6. Suppose that the DCF (discounted cash flow) value of TLV stock is 2.15 lei and forecasted EPS is…

A: Value of a stock or price of the stock can be calculated by discounted cash flow technique. This…

Q: 20121, ABC Company has 1,000,000 accounts receivable that are now fully settled. What is the…

A: To calculate,  Percentage change in Accounts Receivables, data relating to Current year's and Last…

Q: 20. Arithmetic and Geometric Returns A stock has had returns of –26 percent, 12 percent, 34 percent,…

A: i) Arithmetic Mean  = Sum of all returns/N = (26 + 12 + 34 - 8 + 27 + 23)/6 = 19%

Q: XCEL 2. Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund,…

A: Future value is amount accumulated over the period of time due to the deposit made and the interest…

Q: Assuming no withdrawals or additional payments were made, how much money will be in your retirement…

A: Here we will apply the concept of time value of money. The concept says that value or worth of money…

Q: What is the expected return on a portfolio? How can the expected return on a portfolio be…

A: Expected Return on Portfolio  =( Weights of Stock 1 * Return of Stock 1) + ( Weights of Stock 2 *…

Q: Mountain Orthopedics is considering purchasing a Back Blaster 2000. Back Blaster 2000 (BB2) uses…

A: The expected value of the project is the weighted net present value of the projected calculated by…

Q: present value

A: Net present value refers to the difference between the cash inflow and cash outflow in a…

Q: Describe how Investment Managers measure the non-systematic risk of their portfolio

A: Non-systematic risk refers to firm specific risk factors. This type of risk is usually eliminated or…

Q: Assuming that the mandate to a portfolio manager was to invest in a broadly diversified portfolio of…

A: A portfolio manager is a professional who makes investment decisions and executes investing…

Q: What are the weaknesses of the payback method?  What other options do you have?

A: Pay back period is period required to recover initial amount of investment.

Q: Mike joins a savings program where he deposits $1000 at the begint he will earn a perpetuity paying…

A: Here,

Q: You are trying to pick the least-expensive car for your new delivery service. You have two choices:…

A: EAC means equivalent annual cost. It is used to evaluate capital budgeting decisions. When comparing…

Q: 12% 0.962 0.952| 0.943 0.935 0.926 0.917 0.909 0.9010.893 0.8850.877 0.8700.862 0.855 0.847 0.840…

A: Given, Investment needed by Perit Industries  = $125,000

Q: HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of ​$55,000.…

A: The periodic payments accumulate interest which is added to the original deposit. The result is that…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.