How often do solar eclipses occur? a) approx. once a year b) approx. twice a year

PROJECT CASH FLOW

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

The company has a 40% tax rate, and its WACC is 11%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
   $
2. 
   
3. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would now be $ .
4. 
   
5. Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would -Select-increase or decrease Item 3 by $

Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,140. If the firm’s tax bracket is 21%, what is its percentage cost of debt? Assume a face value of $1,000

The following data is provided for the S&P 500 Index:

Refer to the information above. Calculate the 20-year arithmetic average annual rate of return on the S&P 500 Index.

Question 22 options:

Apple employed Bobby in Year 1. Bobby earned $5,100 per month and worked the entire year. Assume the Social Security tax rate is 6 percent for the first $110,000 of earnings, and the Medicare tax rate is 1.5 percent. Tom’s federal income tax withholding amount is $900 per month. Use 5.4 percent for the state unemployment tax rate and 0.6 percent for the federal unemployment tax rate on the first $7,000 of earnings per employee.

Required
a. Answer the following questions.
1. What is Bobby's net pay per month?
2. What amount does Bobby pay monthly in FICA payroll taxes?
3. What is the total payroll tax expense for Apple for January Year 1? February Year 1? March Year 1? December Year 1?
b. Assume that instead of $5,100 per month Bobby earned $9,600 per month. Answer the following questions.
1. What is Bobby net pay per month?
2. What amount does Bobby pay monthly in FICA payroll taxes?
3. What is the total payroll tax expense for Apple for January Year 1? February Year 1? March Year 1? December Year 1?

The following bond investment transactions were completed during a recent year by Starks Company:

Required:

Journalize the entries for the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

you have $1,500 invested for seven year at 10% per year. Calculate the future vale (FV) of this investment.

Choices:

A. $2,239.08

B. $2,923.08

C. None of these

D. $2,392.08

a)An investment pays $10,000 after 1 year and it pays another $8,000 after another 1 year. The interest rate is 5%. What is the present value of this investment?

b)A bond's face value is the amount the issuer provides to the bondholder, once maturity is reached. A bond's face value is $100,000 and it mature after five years. If the interest rate is 1.5%, how much would you pay (at most) to purchase this bond?

Calculating Salvage Value, An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $9,300,000 and will be sold for $2,100,000 at the end of the project. If the tax rate is 35 percent, what is the after tax salvage value of the asset?

Carr Corporation issued $59,000 of 8 percent, 11-year bonds on January 1, Year 1, for a price that reflected a 9 percent market rate of interest. Interest is payable annually on December 31.

Required
a. What was the selling price of the bonds? (Round your intermediate calculations and final answer to the nearest dollar amount.)

b. Prepare the journal entry to record issuing the bonds. (Round your intermediate calculations and final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

c. Prepare the journal entry for the first interest payment on December 31, Year 1, using the effective interest rate method. (Round your intermediate calculations and final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)