sembly operation at a software company now requires $100,000 per year in labor costs. A robot can be purchased and installed to automate this operation. The robot will cost $200,000. Maintenance and operation expenses of the robot are estimated to be $64,000 per year for the first 2 years and $10,000 thereafter. Replacement of minimal parts will cost $5000 every 3 years. Invested capital must earn at least 12% per year. What is the capitalized cost? (Draw cash flow diagram and upload

Q: 13. You are considering adding a microbrewery on to one of your firm's existing restaurants. This…

A: The change in net working capital refers to the additional investment in working capital assets of…

Q: Skeng would like to receive equal instalment of $250,000 at the end of each year for the next 8…

A: FORMULA PVA = P*[1-(1+R)-N]/R Where PVA - Present value of annuity P - Annual payment amount i.e.…

Q: Determine the number of times interest would be compounded in 6 months from the interest statements…

A: Compounding period is defined as the period, which has the span of time that are between at an…

Q: Given the following historical returns, what is the variance? Year Return 1 7 percent 3 percent 3.…

A: Return in year 1 (R1) = 7% R2 = 3% R3 = 19% R4 = -11% R5 = -1% Let R = Average return

Q: Fill in the missing numbers for the following income statement. (Do not round intermediate…

A: Sales 663800   Costs -425700   Depreciation -101300   EBIT 136800 663800-425700-101300 Taxes…

Q: You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price…

A: In order to decide spectrometer is purchase or not, we need to calculate NPV of spectrometer. NPV is…

Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…

A: Here,

Q: a​) a best efforts arrangement whereby Astro will keep 2.4% of the retail sales or ​(b​) a firm…

A: Any net profits obtained upon the disposal, realisation, or redemption of an Authorized Investment,…

Q: to gan at expiration Apple stock sells for £55, then the option holder could acquire the Apple share…

A: Call Option: It is a contract that gives the buyer the option the right to buy the security at a…

Q: Product A Product B Initial cost $750,000 $650,000 Expected life 5 years 5 years Scrap value…

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

Q: 3. Calculating Dollar Returns You purchased 250 shares of a particular stock at the beginning of the…

A: Return  means additional amount received from the invested amount during the investment period. The…

Q: How do I graph this?     Laurel, Inc. Hardy Corp. Price Today $1,000.00 $1,000.00 Price @ 7.8% YTM…

A: Here; We need to plot graphs

Q: Arona would like to receive $15,820 each year for the next 5 years, starting today.  Then she hopes…

A: Since payment is due today or at the beginning of the year, this is annuity due problem.  For…

Q: Year 1 180,000 200,000 300,000 240,000 230,000 210,000 330,000 260,000 195,000 155,000 The company…

A: “Since you have asked to solve part D, E and F only, we will solve the same parts for you.” Capital…

Q: The financial manager of a firm determines the following schedules of cost of debt and cost of…

A: Given, The determination of the financial manager of the firm . Following are the schedules of cost…

Q: 3. You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…

A: Annuity payment concept could be leveraged for an accumulation of the desired corpus during the…

Q: 2. Rearden Metal needs to order a new blast furnace that will be delivered in one year. The…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment.

Q: Consider a CDS on a three-year bond. If the bond defaults, It will only be in the middie of a year.…

A: A Credit Default Swap is a financial derivative that allows an investor to offset their risk. If an…

Q: Given the following, determine the

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

Q: The loan given below was paid off earty. (a) Find the finance change, and (b) find the unearned…

A: Given: Loan = $3400 Monthly payments "PMT" = $204.96 Number of payments "n" = 18 Remaining payments…

Q: Problem 6. As of the end of 2022, Mindorosas Inc. had total assets of P375,000 and equity of…

A: The process by which a business evaluates possible big projects or investments is known as capital…

Q: John already has $55,600 today in his savings account earning 5.5% compounded semiannually. The…

A: Here,

Q: Equipment for immersion cooling of electronic components has an installed value of P 819,000 with an…

A: The declining balance method of depreciation is also known as the reducing balance method or the…

Q: Small enterprise Support- what are the key findings that lose and tengeh 2015 found in their study?…

A: lose and tengeh 2015 paper looked into the difficulties that business incubators (BIs) face when…

Q: Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years)…

A: Zero-coupon bonds are those bonds that are initially issued at discount and matured at par. The…

Q: Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Here in this question we are required to find out the total interest income to be presented on the…

Q: Futon Ltd. is a manufacturing company with the following cost information for one of its products:…

A: The price at which material is purchased is known as the actual price. The standard price is the…

Q: A long forward contract on a dividend-paying stock was entered into some time ago. It currently has…

A:

Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

A: FORMULA  Cost of the preferred stock including flotation = D/(P-F) Where D - Annual dividend i.e.…

Q: Suppose a businessman is considering the purchase of a business machine that is expected to be…

A: In order to suggest whether machine is profitable or not, we need to calculate NPV of the machine.…

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: A firm’s current balance sheet is as follows: Assets $ 110   Debt $ 44         Equity $ 66 What is…

A: Note: since fill the blanks options were not provided, the most appropriate ones are used above.…

Q: Sun Instruments expects to issue new stock at $35 a share with estimated flotation costs of 9…

A: Cost of retained earnings = (Expected dividend/Current price) + Growth rate =[(2.5*1.08)/35]+0.08…

Q: 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of…

A: percentage total return=(End value-Beginning value+Dividend)/Beginning value

Q: first question

A: Financial ratios refer to the magnitude of two values that should be taken from the firm’s…

Q: Your client has the choice of two alternative property investments, whose cash flows are set out as…

A: Concept. Npv is capital budgeting tool. It is used to evaluate performance of projects or to make…

Q: ie inte ernational Monetary Fun (IMF) and the World Bah (WB) have similarities except: O a. Share…

A: World Bank(WB) and International Monetary fund(IMF) are both international agencies having…

Q: Erwin and Eleni have an outstanding mortgage balance of $175,000. They have 14 months remaining on…

A: A mortgage, also known as a mortgage loan, is an agreement between you (the borrower) and a mortgage…

Q: A person has $30,000 to invest As the person's financial consultant you recommend that the money be…

A: Investment must be diversified so that overall return is better and consistent and overall risk of…

Q: BAK Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it…

A: Net present value = present value of future cash inflows - initial investment

Q: 1. An ICT project has the following characteristics: annual costs are committed at the beginning of…

A: Investment appraisal is a branch of financial management dealing with evaluation of potential…

Q: Compute the 5-month moving average and 7-month moving average of the data below.

A: Moving average is a technique used to analyze data points in a data set. The moving average for one…

Q: Question 31: An analyst has assembled the following information regarding Net-Zone Incorporated and…

A: Net Zone Dividend paid Yeasterday is $2.15 Dividend growth rate is 3% Expected return on S&P 500…

Q: Doja Products placed a new machine into production 3 years ago. It had an installed cost of…

A: Book value calculated after deducting the depreciation value over particular period of time.…

Q: explain each of Highest added value activity, to increase switching cost, and to increase entry…

A: Barriers to entry are obstacles or obstacles that make it difficult for a new business to enter a…

Q: Determine the number of times interest would be compounded in 6 months from the interest statements…

A: Compound interest (or compounding interest) is interest calculated on a loan or deposit based on…

Q: (a) It is April 19th. The quoted price of a Treasury bond with an Actual/365 day count and 2% coupon…

A: Here, Face Value of Bond is 100 Coupon rate is 2% Coupon Compounding Period is Semi Annual Quoted…

Q: 7. Ch.11/13 Determine the depletion charges using the percentage depletion methods for the first…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: How much would you have (to the nearest dollar) when you retire if the account pays 3% compounded…

A: Future Value of Annuity: It is the future worth of the company today and is computed by the product…

Q: Ataxia Fitness Center is considering an investment in some additional weight training equipment. The…

A: Payback period refers to the length of time or amount of time that it takes for recovering the cost…

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.