A machine was purchased and installed in the beginning of year 2019. The estimated cost in the period stated dollars is below. The costs are in current period dollars at the end of the year. For example, 2020 cost is reported in end of year 2020 dollars. An inflation rate applicable to years 2020 and higher of 2.85% was used in the estimation process. What is the machine's Present Worth of costs including purchase amount in 2019 dollars using a real MARR of 9.5%? NOTE: 2019 dollars are the same at beginning for purchase and end of 2019. Cost inflation begins in 2020.

Clearly label your answer

Consider a mutual fund with $218 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $4 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end.

a. What is net asset value at the start and end of the year? (Enter your answers in dollars rounded to 3 decimal places.)

b. What is the rate of return for an investor in the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Rate of return             %

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2018 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

Example 5-5

Sutcliffe Company had taxable wages totaling $87,500 in 2019. During the year, the company paid some of its state contributions after the January 31, 2020, cutoff. The penalty for tardiness is shown in the following calculation of the firm's net FUTA tax for 2019:

Example 5-6

Yeldon Company has a $70,000 federal and state taxable payroll and has earned a reduced state tax rate of 4 percent. If none of its state tax payments are timely, the FUTA tax calculation is as follows:

If Yeldon Company had made its SUTA payments before the due date of Form 940, the credit for the payments (4%) and the additional credit (1.4%) would have provided a total credit of $3,780 and a FUTA tax savings of $280.

Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.

a. Amount of credit the company would receive against the FUTA tax for its SUTA contributions
$

b. Amount that Roofling Company would pay to the federal government for its FUTA tax
$

c. Amount that the company lost because of its late payments
$

There is a project with three activites planned for a year (Units are in Rial)

• ‘Activity A’ with a planned cost of 2100,
• ‘Activity B’ with a planned cost of 1500 and
• ‘Activity C’ with a planned cost of 2500.
• Activity A turned out to be more expensive (with an additional 300).
• ‘Activity B’ was done as budgeted.
• ‘Activity C’ is not finished within the year, and only 1500 was spent on it.
• An additional activity ‘Activity D’ was needed and performed with a cost of 500.
What is the cost variance for the given year?Also write a detailed conclusion on the
cost performance

A closed-end fund’s NAV is $25 at the beginning of the year and $39 at the end of the year. At the beginning of the year the fund was selling at a 3% premium to NAV, at the end of the year it was selling at a 2% discount to NAV. The fund paid year-end distributions of income and capital gains of $1. What is the rate of the return to an investor, who bought the fund at the beginning of the year? (Provide your answer in percent rounded to two decimals omitting the % sign)

12. What is the value of each share of stock if the FCF this year is 20 million, the growth rate is 5%, the WACC is 8%, the amount of debt and preferred stock is 90 million and there are 5 million shares outstanding

a. 122

b. 115

c. 140

d. 150