Problem 5-4 Calculating Discounted Payback An investment project costs $10,000 and has annual cash flows of $2,830 for six years. a. What is the discounted payback period if the discount rate is 0 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period if the discount rate is 4 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period if the discount rate is 21 percent? (Enter 0 if the project never pays back on a discounted payback basis. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.

MC algo 5-12 Calculating Crossover Rate You are evaluating two projects with the following cash flows: Year Project X Project Y 0 −$547,200 −$516,500 1 218,600 208,300 2 228,500 218,100 3 235,700 226,000 4 195,400 186,800 What is the crossover rate for these two projects? Multiple Choice .66% 22.35% 11.72% 23.01% 10.65%

You are given the following information:

1. Find the break-even quantity and the total cost at the break-even point.
2. If the requirement is 75000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?

1. Complete an amortization schedule for a $15,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 9% compounded annually. If an amount is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest cent.

   	Beginning			Repayment	Remaining
   Year	Balance	Payment	Interest	of Principal	Balance
   1	$	$	$	$	$
   2
   3

2. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Do not round intermediate calculations. Round your answers to two decimal places.

   	% Interest	% Principal
   Year 1:	%	%
   Year 2:	%	%
   Year 3:	%	%

   Why do these percentages change over time?

   1. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance declines.
   2. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance declines.
   3. These percentages change over time because even though the total payment is constant the amount of interest paid each year is declining as the remaining or outstanding balance increases.
   4. These percentages change over time because even though the total payment is constant the amount of interest paid each year is increasing as the remaining or outstanding balance increases.
   5. These percentages do not change over time; interest and principal are each a constant percentage of the total payment.
   -Select-IIIIIIIVV

b) International standard in audit 220(ISA 220) “quality control for audit financial statements” gives 6 main requirements of quality control procedures for an audit of financial statements of the audit firm.
List the any three of the six elements of quality control and provide one example of a policy or procedure that can be used to fulfil each of the three elements listed. b)

You purchased 30.00 shares of Bank of America one year ago for $8.48 per share. Today, one share trades for $9.05 and paid a dividend of $1.18 per share.

A) What is the capital gain rate from holding the stock the past year?

B) What is the dividend yield from holding the stock the past year?

C) What is the total return for holding the stock the past year?

D) Based on your number of shares purchased, what is the total dollar return of your investment?

The potential implications that increase in non-bank lending growth have on the stability of the Australian financial system.

Explain & Show Work:

Georgia Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. The firm had 1000 shares outstanding

a) How much was the firm's taxable income, or earnings before taxes (EBT)?

b) What is the firm’s EPS assuming a Dividend of $ 100

Part 2 of 5 - Part 2 The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in the furniture. During the next production cycle, 1,200 hours of labor are available under a union agreement. The firm also has a stock of 3,500 feet of good-quality redwood. Each bench that Outdoor Furniture produces requires 4 labor hours and 10 feet of redwood; each picnic table takes 6 labor hours and 35 feet of redwood. Completed benches will yield a profit of $9 each, and tables will result in a profit of $20 each.

Question 5 of 11

10.0 Points

The optimal production of benches is ______________ and the optimal production of tables is_____________ . (Please only enter an integer and include no units. Hint: Because of the resource constraints, you may not be able to produce 4 tables even if the solution is 3.8; you may have to just produce 3 tables.)

Part 5 of 5 -

Part 5

Mt. Sinai Hospital in New Orleans is a large, private, 600-bed facility, complete with laboratories, operating rooms, and x-ray equipment. In seeking to increase revenues, Mt. Sinai’s administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms, and x-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff for medical patients and how many to the surgical staff for surgical patients.

The hospital’s accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and receives a $1,515 bill. The laboratory is capable of handling 15,000 tests per year more than it was handling. The average medical patient requires 3.1 lab tests and the average surgical patient takes 2.6 lab tests. Furthermore, the average medical patient uses one x-ray, whereas the average surgical patient requires two x-rays. If the hospital was expanded by 90 beds, the x-ray department could handle up to 7,000 x-rays without significant additional cost. Finally, the administration estimates that up to 2,800 additional operations could be performed in existing operating room facilities. Medical patients, of course, do not require surgery, whereas each surgical patient generally has one surgery performed.

Assume that the hospital is open 365 days a year. Round off your answers to the nearest integer.

Quisco Systems has

6.9 billion shares outstanding and a share price of

$ 18.84

Quisco is considering developing a new networking product in house at a cost of

$ 458 million.​ Alternatively, Quisco can acquire a firm that already has the technology for

$ 959

million worth​ (at the current​ price) of Quisco stock. Suppose that absent the expense of the new​ technology, Quisco will have EPS of

$ 0.96

a. Suppose Quisco develops the product in house. What impact would the development cost have on​ Quisco's EPS? Assume all costs are incurred this year and are treated as an​ R&D expense,​ Quisco's tax rate is

25 %

and the number of shares outstanding is unchanged.

b. Suppose Quisco does not develop the product in house but instead acquires the technology. What effect would the acquisition have on​ Quisco's EPS this​ year? (Note that acquisition expenses do not appear directly on the income statement.

Assume the firm was acquired at the start of the year and has no revenues or expenses of its​ own, so that the only effect on EPS is due to the change in the number of shares​ outstanding.)

c. Which method of acquiring the technology has a smaller impact on​ earnings? Is this method​ cheaper? Explain.

a. Suppose Quisco develops the product in house. What impact would the development cost have on​ Quisco's EPS? Assume all costs are incurred this year and are treated as an​ R&D expense,​ Quisco's tax rate is

25 %​,

and the number of shares outstanding is unchanged.​Quisco's new EPS would be.

​(Round to the nearest​ cent.)

You purchased a new 2020 Honda Accord. You borrowed $30,710 to make the purchase. A bank lends you the money at an annual fixed interest rate of 3.75% for 5 years. The terms of the amortization loan include making monthly payments. Build the loan amortization schedule in Excel

You are an employee of University Consultants, Ltd and have been given the following information. You are to present an investment analysis of a new small income-producing property for sale to a potential inventor. The asking price for the property is $8.5 million. You determine that the building was worth $7.225 million and could be depreciated over 39 years (use 1/39 per year). NOIs are estimated to be $901,375 for year 1, $900,681 for year 2, $899,962 for year 3, $943,700 for year 4, $961,855 for year 5 and expected to increase by 3.16% thereafter. A fully amortizing 70 percent loan can be obtained at 10 percent interest for 20 years (total annual payments will be monthly payments *12). The property is expected to be sold for $9,360,805 after 5 years. Capital gains from price appreciation will be taxed at 15 percent and depreciation recapture will be taxed at 25 percent. Your ordinary income will be taxed at 35 percent. Assume that there is no selling cost and equity discount rate is 13%.

a. What is mortgage loan balance by the end of year 5?

b. What is the annual interest dollar amount in year 2?

c. What is the debt service for year 4?

d. What is the first-year debt coverage ratio?

e. What is the first-year equity dividend rate?

Curtis and Kathy filed a joint return for Year One on April 15, Year Two. The return claimed bogus deductions related to Curtis’s cattle-raising business. After their divorce in Year Three, the Internal Revenue Service discovered the bogus deductions and issued a notice of deficiency to both Curtis and Kathy.

While they were married, Kathy often visited Curtis’s farmland and on occasion helped out with some chores related to the business. Kathy collected all of Curtis’s receipts and sent them to their accountant to prepare their tax returns. Kathy saw that the receipts for Year One were unusually large, but she did not question Curtis with respect to any of the receipts. Kathy had no other involvement in Curtis’s business.

If Kathy files a request for innocent spouse relief under § 6015, how should the Service respond?