You are considering investing in a project in Mexico. The project will be a 2 year project, has an initial cost of 100K USD, and expected after tax profit of 1 million MXP per year. You expect the MXP to be valued at 0.12 USD/MXP. There are two major risks that you think have the potential to significantly affect project performance, which you assume are independent: * You think with probability of 0.22 that the MXP will depreciate to 0.1 USD/MXP. * You also think that with probability of 0.22 the Mexican economy will weaken substantially, in which case the project's after tax annual cash flow will be only 600K MXP. Your required return on the project is 18%. What is the expected value of the NPV of this project, as measured in USD?

At the beginning of year one, there is no government debt outstanding. The government runs a $100 billion deficit in year one. Interest at a nominal rate of 10% must be paid starting in year two. Assume nominal GDP in year one is $2000 billion and the nominal growth rate of GDP is 4%. Assume the government balances its primary budget in the future and the interest rate and growth rate do not change. (a) What will be the government deficit in years two, three, four, and five? (b) What will be the value of government bonds outstanding at the end of the fifth year? (c) What will be the debt—GDP ratio at the end of year five?

At the beginning of the year, Patrick Company acquired a computer to be used in its operations. The computer was delivered by the supplier, installed by Patrick, and placed into operation. The estimated useful life of the computer is five years, and its estimated residual value is significant.

After reading the above prompt, respond to the following:

What costs should Patrick capitalize for the computer?

What is the objective of depreciation accounting?

What is the rationale for using accelerated depreciation methods?

Precision Construction entered into the following transactions during a recent year.

1. 1-b. Prepare the journal entries for each of the above transactions.

2. 2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Precision Construction should report for the quarter ended March 31. The equipment is depreciated using the double-declining-balance method with a useful life of five years and $51,000 residual value.

3. 3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2.

A corporation had the following assets and liabilities at the beginning and end of this year.

1. Owner made no investments in the business, and no dividends were paid during the year.
2. Owner made no investments in the business, but dividends were $700 cash per month.
3. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock.
4. Dividends were $700 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.

Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.)

The sales of a company (in million dollars) for each year are shown in the table below. Is there evidence of a linear relationship between the two variables, and are they positively correlated?

a. Assign variables and sketch the scatter gram

b. State the Null and Alternative Hypotheses as if a complete hypothesis test had been conducted.

c. Find the linear correlation coefficient.

d. At what level is there evidence of linear correlation?

e. State the least squares equation and sketch it on the scatter gram.

f. Estimate the income in the year 2021

assume that a dam cost 17 million to build in a year and that beginning in the next year, the dam yields net benefits of 2 million per year for 10 years. If the discount rate is equal to 7 percent, what is the net present value of the dam? should it be built or not? What happens if the chosen discount rate is 2%? should the dam built, now?

At the end of the year, a company offered to buy 4,580 units of a product from X Company for $11.00 each instead of the company's regular price of $19.00 each. The following income statement is for the 60,000 units of the product that X Company has already made and sold to its regular customers:

For the year, fixed cost of goods sold were $128,400, and fixed selling and administrative costs were $62,400. The special order product has some unique features that will require additional material costs of $0.77 per unit and the rental of special equipment for $3,000.

4. Profit on the special order would be

5. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.14. The effect of reducing the selling price will be to decrease firm profits by

A man gets a job with a salary of $38,900 a year.
He is promised a $2,430 raise each subsequent year

During a 9-year period his total earnings are________