Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $12 million. The system will last 6 years. Do-It-Right sells a sturdier but more expensive system for $20 million; it will last for 8 years. Both systems entail $1 million in operating costs; both will be depreciated straight-line to a final value of zero over their useful lives; neither will have any salvage value at the end of its life. The firm’s tax rate is 30%, and the discount rate is 13%. Either machine will be replaced at the end of its life.
a. What is the equivalent annual cost of investing in the cheap system? (Do not round intermediate calculations. Enter your answers as a positive value. Enter your answers in whole dollars, not in millions.)
b. What is the equivalent annual cost of investing in the more expensive system?
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Q8. During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need to develop or acquire new businesses to fill it. Identify and describe the three strategies that can be used to fill the strategic gap. (0.5 points) (20-70 words)
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Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,065 and it sells for $1,270.
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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:
Requirements of the paper:
Papers will be assessed on the following criteria:
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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
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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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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 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 of 5% p.a. over 30 years? What if the average return increases to 8% from the 16th year?
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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. How?
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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.
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