discuss immigration to America, 1900-1924. What was the response of "Old-Stock" Americans?
In: Economics
What is the nature of economic inequality today in America society and in other societies like it?
In: Economics
In: Psychology
please discuss the case involving the United States of America versus Ross Ulbricht.
In: Operations Management
please discuss the case involving the United States of America versus Ross Ulbricht.
In: Operations Management
Discuss the rise and fall of revolutionary terrorism in Europe; does it align with Latin America?
In: Psychology
OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship would cost $500 million and would operate for 20 years. OpenSeas expects annual cash flows from operating the ship to be $70 million (at the end of each year) and its cost of capital is 12%.
Show your calculations and answer the following questions
Calculate the NPV of the project if the cost of capital is 12%
Calculate the NPV of the project if the cost of capital is 12%
Is the purchase an attractive investment?
Would your answer change if the cost of capital was 13%?
In: Finance
3. MBV is a cruise line which announced that dividends are
expected to grow by 3.5 percent
annually, having paid a recent dividend of $1.20 per share last
month. If you require a 15
percent rate of return, how much are you willing to pay to purchase
one share of this stock
today?
4. What would you pay for a share of common stock of Pizza Hut
where the last dividend was $17
and dividend is expected to increase by 1.6 percent annually,
assuming a cost of equity of 15
percent?
In: Finance
In: Operations Management
Mid-South Auto Leasing leases vehicles to consumers. The
attraction to customers is that the company can offer competitive
prices due to volume buying and requires an interest rate implicit
in the lease that is one percent below alternate methods of
financing. On September 30, 2021, the company leased a delivery
truck to a local florist, Anything Grows. The fiscal year for both
companies ends December 31.
The lease agreement specified quarterly payments of $6,000
beginning September 30, 2021, the beginning of the lease, and each
quarter (December 31, March 31, and June 30) through June 30, 2024
(three-year lease term). The florist had the option to purchase the
truck on September 29, 2023, for $12,000 when it was expected to
have a residual value of $13,000. The estimated useful life of the
truck is four years. Mid-South Auto Leasing’s quarterly interest
rate for determining payments was 3% (approximately 12% annually).
Mid-South paid $46,000 for the truck. Both companies use
straight-line depreciation or amortization. Anything Grows’
incremental interest rate is 12%.
Hint: A lease term ends for accounting purposes when an
option becomes exercisable if it’s expected to be exercised (i.e.,
a BPO). (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
Required:
1. Calculate the amount of selling profit that
Mid-South would recognize in this sales-type lease. (Be careful to
note that, although payments occur on the last calendar day of each
quarter, since the first payment was at the beginning of the lease,
payments represent an annuity due.)
2. Prepare the appropriate entries for Anything
Grows and Mid-South on September 30, 2021.
3. Prepare an amortization schedule(s) describing
the pattern of interest expense for Anything Grows and interest
revenue for Mid-South Auto Leasing over the lease term.
4. Prepare the appropriate entries for Anything
Grows and Mid-South Auto Leasing on December 31, 2021.
5. Prepare the appropriate entries for Anything
Grows and Mid-South on September 29, 2023, assuming the purchase
option was exercised on that date.
In: Accounting