National Highways Authority (NHA) is considering a public-private partnership with Friends construction as main contractor using a DBOMF contract for a new 50-mile motorway on the outskirts of Baluchistan Province. The design includes seven 10-mile-long commercial/retail corridors on both sides of the road. Motorway construction is expected to require 6 years at an average cost of $4 million per mile. The discount rate is 11% per year, and the study period is 30 years. Initial investment is $200 million distributed over 5 years; $50 million now and in year 6 and remaining amount equally in rest of the years. Annual operating cost is $10 million per year, plus an additional $5 million every six years. Annual revenues Include tolls and retail/commercial growth; start at $5 million in first year, increasing by a constant $2 million annually through year 10, and then increasing by a constant $3 million per year through year 20 and remaining constant thereafter. Disbenefits include loss of income to people in surrounding areas; start at $15 million in year 1, decrease by $2 million per year through year 21, and remain at zero thereafter.

Required: Evaluate the economics of the proposal using (a) the modified B/C analysis from the NHA’s perspective and (b) the profitability index from the Friends construction viewpoint in which disbenefits are included and not included.

Note: You have to show all calculations including workings in your answer sheet.

Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (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.):

  
In addition to the above expenditures, Teradene purchased four forklifts from Caterpillar. In payment, Teradene paid $28,000 cash and signed a noninterest-bearing note requiring the payment of $82,000 in one year. An interest rate of 9% properly reflects the time value of money for this type of loan.

Required:
Determine the initial valuation of each of the assets Teradene acquired in the above transactions. (Round your answers to the nearest whole dollars.)

Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, building, and equipment for the factory: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1

In addition to the above expenditures, Teradene purchased four forklifts from Caterpillar. In payment, Teradene paid $35,000 cash and signed a noninterest-bearing note requiring the payment of $89,000 in one year. An interest rate of 8% properly reflects the time value of money for this type of loan.

Required:
Determine the initial valuation of each of the assets Teradene acquired in the above transactions. (Round your answers to the nearest whole dollars.)

Job Order Costing

The ABC Company builds residential housing. The company started operations on June 1^st, 2018. Below are transactions that occurred in the first month of operations (June 2018)

Journal Entries:

June 1) ABC Company sold common stock for $1,500,000 in cash. The company issued 15,000 shares of $100 Par stock.

June 2) ABC Company purchased $300,000 of building materials. Paying $100,000 cash and the rest on account due in 45 days. No credit terms were given.

June 3) ABC Company purchased construction equipment for $240,000 cash. The company uses the straight line method of depreciation. The equipment has a useful life of 9 years and a residual value of $24,000.

June 4) ABC Company started construction on 3 homes (Job 100, 101, 102) by requisitioning the following materials: The materials were delivered to the job sites.

June 14) The following direct labor was used and paid for during the period ($30/hour):

Predetermined overhead rate calculated May 8, 2018

(Estimated Total Overhead Costs) / (Estimated Direct Labor Hours)

($24,000) / (3000 hours) = $7 per direct labor used

June 21) Job 100 is completed and ready for sale.

The following actual costs were incurred and paid (Except for depreciation transactions listed below) during the month of June:

June 2) Insurance on houses under construction $2,000 (covers up to any number of homes.

June 3) Insurance on anticipated completed homes $500 no matter the number.

June 8) Construction supervisor salary $6,000 (Paid Monthly)

June 8) Company president salary $8,000 (Paid Monthly)

June 8) Administrative staff salaries $3,000 (Paid Monthly)

June 12) Building Permits $3,000

June 15) Fuel for construction equipment $1,500

June 15) Purchased land for $50,000 and a building for $112,000 to use as corporate HQ

June 20) Insurance on HQ is $1,000 per month

June 23) Declared a $5,000 cash dividend to be paid on July 23, 2018.

June 24) Job 100 is sold for $250,000; Cash $150,000 & $100,000 note receivable to be received on September 19, 2018. The amount received will be $109,000 principal and interest. The note is a 360 day (One year is 360 days) 9% simple interest note. An adjusting entry must be made for interest revenue earned for the month of June.

June 30) Depreciation for June on HQ Building $2,500

June 30) Depreciation on the construction equipment was _______________

June 30) Apply (Appropriate) overhead to incomplete jobs

June 30) Account for ending balance in Overhead account

Note: All June 30 entries are Adjusting Entries

ABC

1. Prepare T Account

2. Based on the T Account build

a) Unadjusted Trial Balance,

b) Adjusted Trial Balance

c) Financial Statements

d) Worksheets (Three Trial Balances)

Show in an excel format, please. Thank you.

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $155,000. The old snowplow could be sold now for $15,500. The new, larger plow will cost $13,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $66,000 per year in additional tax revenue for the county.

In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 6 percent.

Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

Required:

1. Compute the initial cost of the investment in the long runway.

2. Compute the annual net cost or benefit from the runway.

3-a. Determine the IRR on the proposed long runway. (Round your answer to the nearest whole percent.)

3-b. Should it be built considering IRR?

Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.

Cost of acquiring additional land for runway $ 87,000
Cost of runway construction 295,000
Cost of extending perimeter fence 10,724
Cost of runway lights 48,000
Annual cost of maintaining new runway 24,000
Annual incremental revenue from landing fees 65,000

In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $195,000. The old snowplow could be sold now for $19,500. The new, larger plow will cost $18,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $124,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 22 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.)

Required:

1. Compute the initial cost of the investment in the long runway.

2. Compute the annual net cost or benefit from the runway.

3-a. Determine the IRR on the proposed long runway. (Round your answer to the nearest whole percent.)

3-b. Should it be built considering IRR?

Let x be a random variable that represents the weights in kilograms (kg) of healthy adult female deer (does) in December in a national park. Then x has a distribution that is approximately normal with mean μ = 70.0 kg and standard deviation σ = 7.3 kg. Suppose a doe that weighs less than 61 kg is considered undernourished.

(a) What is the probability that a single doe captured (weighed and released) at random in December is undernourished? (Round your answer to four decimal places.)


(b) If the park has about 2650 does, what number do you expect to be undernourished in December? (Round your answer to the nearest whole number.)
does

(c) To estimate the health of the December doe population, park rangers use the rule that the average weight of n = 45 does should be more than 67 kg. If the average weight is less than 67 kg, it is thought that the entire population of does might be undernourished. What is the probability that the average weight

x

for a random sample of 45 does is less than 67 kg (assuming a healthy population)? (Round your answer to four decimal places.)


(d) Compute the probability that

x

< 71.2 kg for 45 does (assume a healthy population). (Round your answer to four decimal places.)

Let x be a random variable that represents the weights in kilograms (kg) of healthy adult female deer (does) in December in a national park. Then x has a distribution that is approximately normal with mean μ = 60.0 kg and standard deviation σ = 8.4 kg. Suppose a doe that weighs less than 51 kg is considered undernourished.

(a) What is the probability that a single doe captured (weighed and released) at random in December is undernourished? (Round your answer to four decimal places.)

(b) If the park has about 2350 does, what number do you expect to be undernourished in December? (Round your answer to the nearest whole number.)

(c) To estimate the health of the December doe population, park rangers use the rule that the average weight of n = 50 does should be more than 57 kg. If the average weight is less than 57 kg, it is thought that the entire population of does might be undernourished. What is the probability that the average weight x for a random sample of 50 does is less than 57 kg (assuming a healthy population)? (Round your answer to four decimal places.)

(d) Compute the probability that x < 61.2 kg for 50 does (assume a healthy population). (Round your answer to four decimal places.)

Most armadillos of the genus Dasypus give birth to four monozygotic young (i.e., identical quadruplets).

Which statement is correct?

A random variable that could be studied while monitoring this species could be the number of male young born.

Because there are four babies, the probability of four males or four females must be 1/4 .

Because the young are all identical, there is no randomness.

In the long run, an equal number of males and females will be born.

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Parking is often a challenge, and it is also expensive to park on many college campuses. It is very tempting to park without paying, but there is a risk of getting a ticket. Based on empirical data, here is a probability table that quantifies the chances of various outcomes.

Which statement is not true?

Suppose you park for two days and that the probability above is the same for both days and each day’s outcome does not affect the other day’s outcome. The probability that you will have no ticket over this two‑day period is 0.36.

You parked on campus from Monday to Thursday and did not receive a ticket. Then the probability of no ticket on Friday (assuming each day’s events are independent) is still 0.40.

The probability of being towed is 0.10.

The probability that you will be fined or towed is 0.20.