Questions
Please, this is the fifth time I am posting this question, all the answers I am...

Please, this is the fifth time I am posting this question, all the answers I am getting are inaccurate because the experts are not putting all value into account like the loan interest rate, tax rate, depreciation, annual cash outflows, salvage value, annual cash inflows, and discount rate.

please also support the answer with a full interpretation and the step by step approach in solving the answer. thank you:)

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation.

This case continues following the new project of the WePPROMOTE Company, that you and your partner own. WePROMOTE is in the promotional materials business. The project being considered is to manufacture a very unique case for smart phones. The case is very durable, attractive and fits virtually all models of smart phone. It will also have the logo of your client, a prominent, local company and is planned to be given away at public relations events by your client.

As we know from prior cases involving this company, more and more details of the project become apparent and with more precision and certainty.

The following are the final values to the data that you have been estimating up to this point:

  • You can borrow funds from your bank at 3%.
  • The cost to install the needed equipment will be $105,000 and this cost is incurred prior to any cash is received by the project.
  • The gross revenues from the project will be $25,000 for year 1, then $27,000 for years 2 and 3. Year 4 will be $28,000 and year 5 (the last year of the project) will be $23,000.
  • The expected annual cash outflows (current project costs) are estimated at being $13,000 for the first year, then $12,000 for years 2, 3, and 4. The final year costs will be $10,000.
  • Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment.
  • After 5 years the equipment will stop working and will have a residual (salvage) value of $5,000).
  • The discount rate you are assuming is now 7%.

Requirements of the paper:

  • Perform the final NPV calculations and provide a narrative of how you calculated the computations and why.
  • Then provide a summary conclusion on whether you should continue to pursue this business opportunity.
  • Research, using at least three sources other than the textbook materials that support your calculations and conclusions.

Papers will be assessed on the following criteria:

  • Provide the final, accurate NPV calculations.
  • A narrative on how the NPVs were calculated. The narrative should include how the data relating to depreciation and its tax consequences affect the cash flow of the project.
  • Supporting narrative based on research of sources other than the textbook materials.
  • Provide a conclusion on whether this business opportunity should be pursued.

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a)does google make profit in 2018? b)does google have high internal fund to develop their product?...

a)does google make profit in 2018?

b)does google have high internal fund to develop their product?

c)talk about the strength of google in financial resources

In: Finance

It is now January 1. You plan to make a total of 5 deposits of $300...

It is now January 1. You plan to make a total of 5 deposits of $300 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 10% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. Do not round intermediate calculations. Round your answers to the nearest cent. How much will be in your account after 10 years?

You must make a payment of $1,788.04 in 10 years. To get the money for this payment, you will make five equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 10% with quarterly compounding. How large must each of the five payments be? $

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A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4%...

  1. A house (real estate investment) is purchased for $600,000, 20% cash down, 80% mortgage financing, 4% interest rate, 30 years monthly. The appreciation in the house is 5%/ year. What is the compound annual growth rate (CAGR) of the equity in the house?
  2. In problem #1, what is the interest in years 1 through 5? (amort)

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Following her 18th birthday, Madison began investing $26 at the end of each week in an...

Following her 18th birthday, Madison began investing $26 at the end of each week in an account earning 6% per year compounded weekly. She plans to continue making weekly investments until she turns 68. If she had waited until she turned 48, how much would she have to invest weekly in order to have the same retirement nest egg at age 68? Round to the nearest cent.

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Elements a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship b. Assessed Inherent Risk...

Elements
a. Engagement risk and Acceptable Audit Risk Inverse Direct No Relationship
b. Assessed Inherent Risk and Planned Detection Risk Inverse Direct No Relationship
c. Materiality and Amount of Substantive Evidence Needed Inverse Direct No Relationship
d. Assessed Inherent Risk and Assessed Control Risk Inverse Direct No Relationship
e. Acceptable Audit Risk and Assessed Control Risk Inverse Direct No Relationship
f. Amount of Substantive Evidence collected and Achieved Detection Risk Inverse Direct No Relationship
g. Actual Inherent Risk and Actual Control Risk Inverse Direct No Relationship
h. Achieved Detection Risk and Achieved Audit Risk Inverse Direct No Relationship

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What is the accumulated (future) sum of monthly contributions of $500 invested at an average return...

What is the accumulated (future) sum of monthly contributions of $500 invested at an average return of 5% p.a. over 30 years? What if the average return increases to 8% from the 16th year?

In: Finance

Prof. Finance decides to buy a 2019 Mazda 6 Signature Edition. After paying a down payment...

Prof. Finance decides to buy a 2019 Mazda 6 Signature Edition. After paying a down payment and taxes, Prof. Finance can finance the rest of the purchase price with a loan of $24,000 for 60 months at a special finance rate offered by Mazda of 1.9% APR compounded monthly.

• He finds out that Mazda has a second offer of $1000 cash back (rebate) in place of the special 1.9% finance rate offered with the cash back being an additional down payment. Prof. Finance finds he can get 2.9% APR financing online for 60 months if he takes the $1000 cash back offer. Answer the following questions.

1. What is the effective annual rate for each loan?

2. What would be the monthly car loan payment under the Mazda’s 1.9% APR financing offer (assume a 60-month loan term)?

3. What would be the monthly car loan payment under the Mazda’s $1000 cash back offer and the 2.9% APR pre-approved financing (assume a 60-month loan term)?

4. At what APR would Prof. Finance be indifferent between the two offers? In other words, what APR (assuming a 60-month loan term) for the $1000 cash back offer would have the same monthly payment with the 1.9% APR financing offer?

5. Let’s assume you go with the offer in question #3. Construct an amortization schedule for the loan for all 60 monthly payments (see section 5-18 of the textbook). What is your loan balance after 36 months?

6. The local Mazda dealer has found a special 2.49% APR loan rate for 60 months from Citibank that Prof. Finance qualifies for if he elects the $1000 cash back option. Prof. Finance says that’s great! What would be the monthly payment under this loan?

7. Prof. Finance is more than happy with the 2.49% APR and $1000 cash back offer but wants a monthly payment of $375 (assume a 60-month loan term) and realizes he will have to put more money down. How much additional money will Prof. Finance have to put down in order to achieve his target monthly payment? Note: original loan amount with cash back was $23,000.

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Both the internal and external sources of finance are very important means of funding for entrepreneurs....

Both the internal and external sources of finance are very important means of funding for
entrepreneurs. How?

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The Data • Lightning Wholesale has opted to only carry two ski brands in 2014: Ogasaka...

The Data
• Lightning Wholesale has opted to only carry two ski brands in 2014: Ogasaka and Nordica.
• The list prices for Ogasaka and Nordica are $840.00 and $800.00, respectively.
• The typical monthly compounded interest rates charged by the retailers are 6%, 8.5%, 12%, and 16%.
• Lightning Wholesale recommends a 10% down payment on all finance plans for all of its retailers.
Important Information
• All retailers sell the skis at the list price.
• All ordinary payment plans are either six month or nine month.
• Lightning Wholesale ignores sales taxes in its chart since every province has varying rates.
Your Tasks
1. For both product lines and for each interest rate, develop both a six-month and a nine-month payment plan amount chart that the retailers can advertise that incorporates the required down payment. For these advertised amounts, assume the final payment remains the same as all other payments (in application, though, the retailers will need to be cautioned that the final payment may be different and adjusted as needed, to which Lightning Wholesale can provide the necessary information as required).
2. Retailers ask you how to adjust the advertised payment plan chart amounts if they decide to sell the skis for some price other than the list price. What would you recommend? Provide calculations to support your answer.
3. Some retailers charge different interest rates and want to know if it is possible to just proportionally adjust the payment plan chart. For example, if a retailer charges 9% interest, this approach would then be to increase the 6% payment by 50% of the difference between the 6% and 12% level. Can retailers adjust your payment plan table in this way? Provide calculations using the provided numbers to support your answer.
4. Some retailers offer a 12-month payment plan and ask if it is possible to just take the six-month payment numbers and divide by 2, or take the nine-month payment numbers and divide by 3/4 to arrive at the 12-month payment plan numbers. Can retailers adjust your payment plan table in this way? Provide calculations to support your answer.
can you tell me the answers asap

In: Finance

5 paragraph answer : 8. ESSAY QUESTION: Do some reading in periodicals and/or on the Internet...

5 paragraph answer : 8. ESSAY QUESTION: Do some reading in periodicals and/or on the Internet to find out more about the Sarbanes-Oxley Act's provisions for companies. Select one of those provisions, and indicate why you think financial statements will be more trust-worthy if company financial executives implement this provision of SOX.

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Your company currently has $1,000 par, 6% coupon bonds with 10 years to maturity and a...

Your company currently has $1,000 par, 6% coupon bonds with 10 years to maturity and a price of $1,082. If you want to issue new 10-year coupon bonds at par, what

coupon rate do you need to​ set? Assume that for both​ bonds, the next coupon payment is due in exactly six months.

In: Finance

Can you send the excel file if I provide an email address? This is a question...

Can you send the excel file if I provide an email address?

This is a question on managerial decision making with excel spreadsheet. A step wise how to solve this will be appreciated for homework and not any exam. A model in excel will really help.

John’s Truck

John owns John’s Truck Rental, which is currently for sale for $650,000. He would like you to develop a five-year spreadsheet model to assist buyers in their evaluation of the company.

The company currently has a fleet of 100 trucks, which are rented out for $15,000 per year. At this rental rate, the average utilization of the fleet is 62%. He believes that for every $1,500 decrease in the annual rental rate, the utilization will increase by 7%. Conversely, the same size increase in the rental rate will lead to a decrease of the same amount. The spreadsheet model should be able to handle a change in rental rate and calculate the corresponding change in utilization- the user should not be limited to increments of $1,500 only (assume that fractional values of utilization are acceptable as these are annual averages of utilization). The annual rental rate should be set once and held steady for all five years of the model.

The cost of maintaining the fleet runs $4,800 per truck per year (regardless of utilization), which includes inspection fees, licenses, normal maintenance, and storage. These maintenance costs are expected to increase by 9% per year. The company has fixed office costs of $60,000 per year, which are expected to remain stable, and pays property taxes of $35,000, which is expected to grow at a rate of 3% per year. Profits are subject to a 30% income tax rate (and losses, if incurred, are not taxed).

At the end of five years, it is assumed that the buyer will resell the business for cash. John estimates the selling price at that time to be three times the gross revenue in that final year. Cash flow in the final year would include cash from the sale of the business, which would be taxed at the same rate as annual income (and we will assume full depreciation of the trucks has already occurred, thus no tax effects). Investment profit for the buyers is defined to be the Net Present Value of the annual cash flows (all operating revenues and expenses are in cash), computed at a discount rate of 10%. The calculation of NPV includes the purchase price, incurred at the beginning of Year 1, and net income from the operations (include the sale price in Year 5) over five years.

To do

  1. Build the spreadsheet model to solve this problem. Make sure you follow the guidelines for good spreadsheet design including proper cell referencing, good flow/layout, etc. Your grade on this portion of the HW reflects having correct calculations, following guidelines and creating a well-designed and easy-to-use worksheet.
    • Use Excel functions to help you, as necessary.

  1. John is thinking about raising the selling price. Use Goal Seek to find the point at which the NPV hits $1 million (John considers the point at which it might be hard to find a buyer).
    • What is the selling price at which this NPV occurs? Write the answer to this question somewhere (easy to find) on your worksheet.
    • Make sure to reset the selling price to the base value before proceeding to Task 3!

  1. John would to have some additional analysis available on the spreadsheet to provide the potential buyers with information that might help inform their decision. He would like you to analyze the effect of the annual rental rate on the NPV. You recommend using a Data Table. Build this table on the same worksheet as your model, using values of annual rental rate ranging from $10,500 to $19,500 in increments of $1,500. Beyond including the corresponding NPV output values, you want to include the utilization rates in this table to confirm for the potential buyer that these changes are being calculated correctly.
    • Based on the results of the table alone, what is the annual rental rate that is most attractive to a potential buyer?

Homework Submission Instructions:

  • Upload your completed Excel workbook
  • Make sure that your model has the correct base-case input values and results!
  • Use at least 2 decimal places for any fractional value.

In: Finance

Are rising inflation rates a threat to healthcare companies?

Are rising inflation rates a threat to healthcare companies?

In: Finance

Compute the Earning After Tax using both FIFO & LIFO inventory evaluation methods from the following...

Compute the Earning After Tax using both FIFO & LIFO inventory evaluation methods from the following data:

Revenue is assumed at 500 units that sell for $300.00 per unit

Cost of sales

Beginning inventory

200 units @$55.00 per unit

Purchase of

250 units @ $65.00 per unit

Purchase of

210 units @ $70.00 per unit

Purchase of

90 units @$75.00 per unit

Ending inventory

???? units ( not a mistake you must determine what the ending dollar inventory and units are)

Operating expenses

$8,750.00

Income tax rate

20% of Gross Profit

In: Finance