what would have been the maximum amount that should be invested? Use interest rate of 9% compounded annually.

Q: Consider the following alternatives below. Based on a 7% interest rate, assuming both alternatives…

A: Equivalent Uniform annual Cost Method:- When  life of two mutually exclusive projects are different…

Q: are and contrast the roles and functions of capital markets and

A: There are two types of market for raising money and trading of securities in the market capital…

Q: Just a quick question for this answer. Isnt N supposed to be 4 years and not 5? As the growth is…

A: Year               Dividend 1                    13 p 2                     14 p 3…

Q: 28. What is scarcity? O Balancing unlimited wants with lim OBalancing trade between different:…

A: Scarcity is the gap between scarce resources and unlimited wants that are never-ending but to…

Q: Determine the annual retirement amount that he can withdraw forever starting next year (year 26), if…

A: This problem involves the application of annuity and perpetuity. The present value of a perpetual…

Q: ver the past 3 years, your stock fund earned returns of 10%, -8%, and 12

A: Solution:- Average annual compound rate means the average of the returns earned in the various…

Q: Lassiter Equity Fund 1/1/21 12/31/21     Assets $250,000,000 $282,000,000     Liabilities…

A: Mutual funds are one of the investment opportunities available for investors to invest. The NAV of…

Q: What is your yield to maturity on the bond given the market price of the bonds?

A: Yield To Maturity: It is the total expected rate of return for the bondholder given all the coupon…

Q: The disposition effect:   a. Is the tendency of stock investors to sell their winning stocks and…

A: In finance disposition effect is related to behavioral finance. Disposition effect refers to the…

Q: Required: Find the after-tax return to a corporation that buys a share of preferred stock at $57,…

A: Return is calculated by adding the sale value and any dividend received and reduced by the purchase…

Q: A company is evaluating a loss control plan. The costs and benefits are as follows: • The initial…

A: Here, Discount rate = 5% To Find: Net present value (NPV) =? Decision =?

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: 2. Calculation of the size of three equal payments: Amount Due = [P/(1+ i /n)^n*2] + [P / (1+…

Q: Property worth $77,490.00 can be purchased for 10% down and mortgage payments f $1355.00 at the end…

A: Solution:- When an equal amount is paid each period at the end of period, it is called ordinary…

Q: n June 2020, Singapore Airlines Limited undertook a renounceable rights issue of new ordinary shares…

A: Renounceable Right Issue of Ordinary Shares Under this approach a company gives an offer to its…

Q: A company can purchase a piece of equipment for $4,230. The equipment has a three-year life and…

A: Initial cost = $4,230 Annual cash inflow year 1 = $1,350 Annual cash inflow year 2 = $1,350 Annual…

Q: In a 'best case scenario' an investment advisor projects that stock ABC will triple in value over 5…

A: Here; Investment will triple in 5 years Therefore;  Present Value =1 Future Value = 3 Time period is…

Q: Name Spot The Difference There are 10 differences in the pictures below. Can you find them all?

A: Difference are marked in the below image with black color line. Please find black line to identify…

Q: A firm must decide between two designs A and B. Their effective income rate is 50%. If the desired…

A: Explanation : NPV method is a capital budgeting technique which help in decision making of project…

Q: A Facility Manager is evaluating the installation of Invert current non inverter type). The cost of…

A: Pay back period is period required to recover initial amount of investment and normally should be…

Q: when comparing a firm's ratios to an industry, is it bad to he below average? explain your answer…

A: In finance we often use financial ratios to determine and evaluate the financial health and position…

Q: The Mandaue Furniture produces tables. The fixed monthly cost of production is P8,000, and the…

A: Total cost includes both variable and fixed costs. A Break-even point is a point where the company…

Q: How does a financial manager monitor and evaluate a firm’s financing?

A: Financial management refers to the art of managing the money of the firm in order to meet its…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Return means earn additional over the investment amount during the period. Before investing in any…

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: How can you use net present value in a startup

A: A startup is an entrepreneurial venture which is in the first stage of its operations. A startup…

Q: How much money should you deposit every year in your savings account starting 3 years from now at 7…

A: Given: Particulars Amount Future value (FV) 8000 Years 3 Ending deposit 10 Interest rate…

Q: On July 10, 2012, you purchase a $10,000 par T-note that matures in five years. The settlement…

A: The accrued interest is among the distinguishing features of accrual accounting. It comply to the…

Q: 5. A firm must decide between two designs A and B. Their effective income rate is 50%. If the…

A: Explanation : Under  Capital Budgeting technique we can take the decision whether the project should…

Q: company projects an increase in net income of $157500 each year for the next five years if it…

A: Average investment = (Initial investment+ salvage value)/2 = (900000+300000)/2 = $600000

Q: If you have a portfolio made up of 30 percent Yum Brands, 30 percent Raytheon, and 40 percent…

A: return of Portfolio = wA * rA + wB * rB+ wC * rC   wA = 3.8% = 0.038 rA = 30%

Q: 2. A P100 investment yields P112.55 in one year. The interest on the investment was compounded…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: 8%. Mark ALL the CO CT statements. For this question, pro Apply the Gordon Formula to the profits of…

A: Present value can be found from the given discount rate and the growth rate of of profit of the…

Q: Jordan has $6000 to invest in an account from which he plans to make regula withdrawals over the…

A: Withdrawal that can be depend on the initial amount and interest rate and period of withdrawal and…

Q: 21 year maturity rate Coupon rate 8% Value $1000 interest is semi annually. AA bond maturity is…

A: Solution:- Yield to maturity means the rate of return earned by the bond holder, if he holds the…

Q: The CC value is determined to be $

A: CC Value: It represents the current value of the account at a future date.

Q: Still need answers and details for B and C?

A: the minimum number of cartons per year that can be supplied. the highest fixed costs that could be…

Q: (b) "Financial innovation sometimes brings great rewards. It can make the financial system more…

A: RELATION BETWEEN INNOVATION AND MANAGING RISK Innovation is the lifeblood of any company, but…

Q: United Airlines is considering adding a new hub operation in Blue Lagoon.  The finance group at UAL…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2018 income state- ment (shown in…

A: Answer-  Solving first 4 subparts  -  Part 1 - Calculation of Pre share dividend in 2018 -  Total…

Q: What is the present worth for the investment represented by the given cash flow? Interest is 12%.

A: Present Worthbis the sum of present value of cash flows discounted at the required rate of return.

Q: Learning Task 2: Journalize the entries for the following adjustments on December 31, the ed o the…

A: Journal entries is referred as an act of the keeping/making records for all the transaction of the…

Q: Don't answer if you already answered this. If i see the same solutions, i'll downvote you. Follow…

A: JORNALIZATION OF THE ENTRIES AS ON  31 DECEMBERTHE END OF ACCOUNTING YEAR…

Q: Compute the mean return, variance, and standard deviation of returns, and the coefficient variation…

A: Formula to be used: Mean(X̄)=∑X/n Variance=∑ (X-X̄)^2)/n Standard deviation (SD)=√(∑(X-X̄)^2)/n…

Q: Answer the next questions which are based on the following balance sheet of Bank A. Assume the…

A: Reserve Requirement (RR) : The minimum amount of reserves that a bank must hold on to is referred to…

Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…

A: Given: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750

Q: Mark Welsch deposits $7,900 in an a earned interest must remain in the ac years? (PV of $1, FV of…

A: Given: Deposit = $7,900 Interest rate = 12% Years = 2

Q: High Roller Properties is considering building a new casino at a costof $10 million at t = 0. The…

A: Data given: Cost of new casino  (at t=0) = $10 million  WACC = 11% Cash flow with tax=$1.875 million…

Q: An engineer at Suncore Micro, LLC calculated the present worth of mutually exclusive bundles, each…

A: The hurdle rate, often known as the minimum acceptable rate of return, is the minimum rate of return…

Q: Seven years ago, you deposited $1000 into an account earning r = 10% APR compounded annually.  How…

A: Future value: Future worth (FV) is the sum to which an ongoing venture will develop after some time…

Q: what is the par value of the bond? P 6,130.08 P 5,816.44 P 5,750.45 P 6,209.11

A: Par value refers to price or value of a bond offered by the company at the time of issuance. It is…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.