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
In: Civil Engineering
|
Consider a mutual fund with $209 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 $3 million. The stocks included in the fund's portfolio increase in price by 9%, 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.) |
| Net Asset Value | |
| Start of the year | $ |
| End of the year | |
| b. |
What is the rate of return for an investor in the fund? (Use rounded "Net Asset Value". Round your answer to 2 decimal places.) |
| Rate of return | % | |
In: Finance
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)
In: Finance
|
You will be paying $10,700 a year in tuition expenses at the end of the next two years. Bonds currently yield 10%. |
| a. |
What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.) |
| Present value | $ |
| Duration | years |
| b. |
What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.) |
| Duration | years |
| Future redemption value | $ |
| You buy a zero-coupon bond with value and duration equal to your obligation. |
| c-1. |
Now suppose that rates immediately increase to 11%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Net position changes by | $ |
| c-2. |
What if rates fall to 9%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Net position changes by | $ |
In: Finance
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
In: Finance
|
|||||||||||||||||
In: Finance
A. What is the ERR for this project? Assume that MARR = 15% per year. Is this project considered to be profitable?
|
Investment cost |
$15,000 |
|
Expected life |
7 years |
|
Market (salvage) |
–$1,500a |
|
Annual receipts |
$8,750 |
|
Annual expenses |
$3,550 |
|
a A negative market value means that there is a net cost to dispose of an asset. |
|
B. What is the discounted payback period?
In: Economics
The Harris Company is the lessee on a four-year lease with the
following payments at the end of each year:
| Year 1: | $ | 11,000 |
| Year 2: | $ | 16,000 |
| Year 3: | $ | 21,000 |
| Year 4: | $ | 26,000 |
An appropriate discount rate is 7 percentage, yielding a present
value of $61,233.
a-1. If the lease is an operating lease, what will
be the initial value of the right-of-use asset?
a-2. If the lease is an operating lease, what will
be the initial value of the lease liability?
a-3. If the lease is an operating lease, what will
be the lease expense shown on the income statement at the end of
year 1?
a-4. If the lease is an operating lease, what will
be the interest expense shown on the income statement at the end of
year 1? (Leave no cells blank – be certain to enter “0”
wherever required.)
a-5. If the lease is an operating lease, what will
be the amortization expense shown on the income statement at the
end of year 1? (Leave no cells blank – be certain to enter
“0” wherever required.)
b-1. If the lease is a finance lease, what will be
the initial value of the right-of-use asset?
b-2. If the lease is a finance lease, what will be
the initial value of the lease liability?
b-3. If the lease is a finance lease, what will be
the lease expense shown on the income statement at the end of year
1? (Leave no cells blank – be certain to enter “0” wherever
required.)
b-4. If the lease is a finance lease, what will be
the interest expense shown on the income statement at the end of
year 1? (Round your answer to the nearest dollar
amount.)
b-5. If the lease is a finance lease, what will be
the amortization expense shown on the income statement at the end
of year 1? (Round your answer to the nearest dollar
amount.)
In: Finance
A culvert for a new roadway fill is to be designed for
a 25 year flood. Hydrologic
analysis results in a peak discharge of 5.66 m3
/s for this flood. The inlet invert
elevation is 30.48m, natural stream bed slope is 0.01,tailwater
depth above the outlet
invert level is 1.1m, culvert length is 60.96 m and the roadway
shoulder elevation is
33.5m. Design a concrete pipe culvert for this site. Assume that
the accepted design
practice requires a 0.61m freeboard between the water surface in
the upstream pool
and the shoulder. Also, the culvert will be a circular concrete
pipe with the square
edge with headwall
In: Civil Engineering
You are asked to plan a budget of University of Connecticut for the next year. The two major expenses involve computers, x1 and classroom furniture, x2. The university utility function is given byU(x1, x2)=ln x1 + 2ln x2
a) Find optimal "consumption" of computers and furniture if P1=2 and P2=4 and the available funds are m= 60.
b) Is computer an ordinary or a Giffen good ? Determin whether computer is a gross complement,gross substitute or neither, for classroom furniture. (Explain these questions using partial derivatives)
c) Please draw the price offer curve for x2 given p1=4 and m = 60.
In: Economics