Q: how about the solution of part D?
A: Here, Beta of stock = 1.35 Beta of risk-free asset = 0 Expected return of stock = 16% Risk-free…
Q: Explain CMO Mechanics?
A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…
Q: What's the related cost of implementing database system?
A: This question explains about the related cost of implementing database system.
Q: Along what two dimensions can we classifytrading procedures?
A: Trading procedures: It is the methods and available venues from where trading (Buying and selling of…
Q: What is the advantages and disadvantages of turnkey systems?
A: Introduction; A turnkey system is when the company develops, builds, and tests a manufacturing…
Q: What is the project’s PI?
A: The PI index the profitability index of the project. The shows the profitability of the project…
Q: What are the important feature of a perpetual system?
A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…
Q: What is FASB and where does it get its power?
A: FASB: FASB is also called a Financial accounting standards board setup to provide standards and…
Q: What is an ERP system?
A: Enterprise Resource Planning (ERP) System: Enterprise Resource Planning System refers to a…
Q: How would I complete this problem fully by hand?
A: Data given: Loan amount is $15,000 Nominal interest rate is 11% n= 1 year
Q: What are the requirements of Continuous Compounding?
A: The question is based on the concept compounding of interest rate.
Q: What is the mechanism via which Naics operates?
A: It is about the mechanism via which Naics operates:
Q: What is the purpose of physical contols
A: Physical controls are basically to safeguard the assets of the entity which are highly valuable. It…
Q: What is the project’s MIRR?
A: Rate of return is the expected result of any investment or project. It can be negative or positive.…
Q: and maint system?
A: Given information : Initial expenditure = $20 million Time period = 180 years Periodic expenses =…
Q: Describe the PW method?
A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…
Q: Advise whether the machine should be sold
A: Book Value of Machine= Rs 1,10,000 Current Market Valur of Machine= Rs 80,000 Expected Salvage value…
Q: What was the purpose of creating the EDGAR system?
A: Definition: Electronic Data Gathering, Analysis, and Retrieval (EDGAR) are the electronic filing…
Q: Which of the two alternatives should be selected? Show all calculations.
A: Incremental analysis A technique that helps in taking decisions by a business to find out the…
Q: What is the project's IRR?
A: Internal Rate of Return (IRR) is defined as the minimum rate of return that gives zero valuation to…
Q: Test data, an integrated test facility, and parallel simulation are compared and contrasted.…
A: Introduction: Test data is data used solely for testing within computer programs, and it is…
Q: What are the different techniques of computing interest?
A: The different techniques of computing interest of explanation:
Q: When is a New AIS is needed?
A: AIS is accounting information system is a whole information system which provides information about…
Q: What is the purpose of using the high-low method?
A: High-low method: In the high-low method, the semi variable-cost approximation is calculated by using…
Q: What are the two classes of design input views?
A:
Q: Example or what are the transactions that will increase "Equipment"?
A: Equipment is the non-current asset usually held by the entity for the purpose of running the…
Q: Who were Modigliani and Miller (MM), and whatassumptions are embedded in the MM and Millermodels?
A: Introduction: Capital structure relates to financing of the overall activities and development of a…
Q: What are the benefits and drawbacks of turnkey systems?
A: Here is the Answer
Q: What are the different stages of the Double Entry System?
A: The accounting is a process to identify the business transactions, classify the business…
Q: What is the Baumol model, and how is it used?
A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…
Q: Describe the process of Evaluating a Single Project?
A: A single project can be evaluated using quantitative, qualitative or a combination of both. Project…
Q: What are the advantages of real-time processing?
A: Real Time Processing: Real time processing is performed in conditions where the transactions in the…
Q: What exactly are the advantages and disadvantages of turnkey systems?
A: Here are the advantages and disadvantages of turnkey systems:
Q: What is the primary advantage of the multiple-step format?
A: Definition: Multi-step income statement: The income statement represented in multi-steps with…
Q: illustrate with an example how can we determine the IRR?
A: IRR is a method that tells the company how much returns the company will earn on the amount spent on…
Q: What are the major inputs to the MRP system?
A: The preparation of material requirements planning (MRP) is a method for measuring the materials and…
Q: What are two approaches to conceptual systems design?
A: Conceptual Design: Conceptual design is that structure which provides various conceptual system…
Q: d. Should the machine be purchased? Explain your answer.
A: Labor costs are the cost which are incurred to get the raw materials produced. The labor cost is a…
Q: What steps would be involved?
A: Arbitrage is the strategy applied by the investor to take the benefit of mispricing, at various…
Q: straight line method?
A: Depreciation = (Historical cost - Salvage Value)/Useful life Book Value of Asset = Historical cost…
Q: What is the NAV?
A: NAV full form is net asset value The detailed explanation is explained in step 2
Q: What are some limitations of using the direct write-off method?
A: In order to increase sales generally business enterprises sales the goods on a credit basis. When…
Q: Which of the following defines iterative calculation?
A: SPREADSHEET
Q: Why are the realization and matching principles important?
A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…
Q: Which machine should be purchased? should be purchased.
A: Profitability Index: It is a measure of an investment's or project's attractiveness used in capital…
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- Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?An interest rate of 15% is used to evaluate a new system that has a first cost of $212,400, annual operating and maintenance costs of $41,200, annual savings of $94,600, a life of 6 years, and a salvage value of $32,500. After initial evaluation, the firm receives word from the vendor that the first cost is 5% higher than originally quoted. The percentage error in the system’s present worth from this is closest to what value? (a) 5% (b) 15% (c) 100% (d) 300%Your company is planning to add a piece of equipment with 7 years of expected life for its production line. There will be no salvage value at the end of its life. The company has set its MARR to 11%. Your manager asks you to use incremental analysis to evaluate the alternatives and let him know which one of them should be chosen. Below is the data provided to you with the investment cost, annual income and IRR for each of the five alternatives. A B C D E Capital investment $14,000 $16,000 $16,500 $17,200 $20,000 Net annual income $3,000 $3,500 $3,700 $3,750 $4,300 IRR 11.30% 11.95% 12.73% 11.84% 11.41%
- Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a 3-year life, and has pretax operating costs of $41,000 per year. The Techron II costs $330,000, has a 5-year life, and has pretax operating costs of $52,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $25,000. If your tax rate is 21 percent and your discount rate is 9 percent, compute the EAC for both machines. Which do you prefer? Why?The two machines shown are being considered for a chip manufacturing operation. Assume the MARR is a real return of 12% per year and that the inflation rate is 7% per year. Which machine should be selected on the basis of an annual worth analysis if the estimates are in (a) constant-value dollars, and (b) future dollars? Solve by hand and using a spreadsheet. Machine A B First cost, $ −150,000 −1,025,000 M&O, $ per year −70,000 −5,000 Salvage value, $ 40,000 200,000 Life, years 5 ∞Colaw Company is considering buying equipment for $240,000 with a useful life of five years and an estimated salvage value of $12,000. If annual expected income is $21,000, the denominator in computing the annual rate of return is Group of answer choices $120,000. $252,000. $240,000. $126,000.
- Pitt Company is considering two alternative investments. The company requires a 12% return from its investments. Neither option has a salvage value. Project X Project Y Initial investment $244,049 $180,396 Net cash flows anticipated: Year 1 83,000 35,000 Year 2 59,000 56,000 Year 3 91,000 71,000 Year 4 82,000 68,000 Year 5 77,000 27,000 A. Compute the IRR for both projects using the IRR spreadsheet function. Project X fill in the blank 1% Project Y fill in the blank 2% B. Which project should be recommended.The accounting rate of return on the average cost of investment (ARRAC) is 19%. The project has a salvage value of P 8,000. The average cost of investment is P326,000 What is the accounting rate of return on the original cost of investment (ARROC)?a. 9.1%b. 9.3%c. 9.6%d. 9.9%A firm is considering three mutually exclusive alternatives as a part of an upgrade to an existing transportation network. If the MARR is 10% per year, which alternative(if any) should be chosen using the IRR analysis procedure? Use trial & error and show your calculations. A B C Initial Cost 40000 30000 20000 Annual Revenue 10400 8560 7750 Annual Cost 4000 3000 2500 Salvage Value 3000 2500 2000 Useful Life 20 20 10
- To increase production, an engineer is considering the purchase of a new machine. The machine costs P350 000.00 and will have a salvage value of P10 000.00 at the end of eight years. Operating and maintenance cost is expected to be P4000.00 per year. With this machine. Annual revenue is expected to increase by P85 000.00. Using future worth analysis and a 15% rate of return, determine if the purchase should be recommended. (Ans. FT = P51 214.34 )-PLEASE USE AN ACTUAL FORMULA NOT AN EXCELKYZ Company is going to purchase an equipment that costs $50,000. Useful life is expected to be 5 years and the required rate of return is 12%, what is the minimum annual cash inflow that the equipment must offer for the investment to be acceptable? (Do not round your PV factors and intermediate calculations. Round your final answer to the nearest dollar.)$17.623$13,870$8,929$12,076Mr Dela Cruz is going to buy a new machine for manufacturing its product: Machine A has a first cost of P50,000; annual maintenance P6,000; life 12 years and salvage value of P2,000. Machine B has a first cost of P140,000; annual maintenance P2,500, life 36 years and salvage value P10,000. Money is worth 9%. What is the rate of return on additional investment? show solution A. 6.5% B. 7.4% C. 5.93% D. 10.5%