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
1. At the end of the year, a company offered to buy 4,510 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 62,400 units of the product that X Company has already made and sold to its regular customers:
Sales $1,060,800
Cost of goods sold 504,192
Gross margin $556,608
Selling and administrative costs 156,000
Profit $400,608
For the year, fixed cost of goods sold were $122,304, and fixed selling and administrative costs were $78,000. The special order product has some unique features that will require additional material costs of $0.71 per unit and the rental of special equipment for $2,500. Profit on the special order would be?
2. 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 $0.16. The effect of reducing the selling price will be to decrease firm profits by
In: Economics
By around the year 1000 the most “Carolingian” kingdom in Europe was that of the English while the least “Carolingian” was the lands that had formerly been “West Francia.” Write an essay that considers the factors that led, between roughly 850 and 1000 to a united and rather “Carolingian” kingdom in England and to the “feudal revolution” in France during those same years.
In: Psychology
what are the formulas for
NOPM for the current year as if the company capitalized its operating leases.
NOAT for the current year as if the company capitalized its operating leases.
RNOA for the current year as if the company capitalized its operating leases.
Financial Leverage as if the company capitalized its operating leases
Return on Equity as if the company capitalized its operating leases
Nonoperating Return as if the company capitalized its operating leases
In: Accounting
Questions 6, and 7 refer to the following information:
At the end of the year, a company offered to buy 4,740 units of a product from X Company for a special price of $11.00 each instead of the company's regular price of $18.00 each. The following information relates to the 65,000 units of the product that X Company made and sold to its regular customers during the year:
| Per-Unit | Total | ||
| Cost of goods sold | $7.55 | $490,750 | |
| Period costs | 2.22 | 144,300 | |
| Total | $9.77 | $635,050 | |
Fixed cost of goods sold for the year were $124,150, and fixed
period costs were $68,250. Variable period costs include selling
commissions equal to 3% of revenue.
6. Profit on the special order is
7. Assume the following two changes for the special order: 1) variable cost of goods sold will decrease by $0.73 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?
PLEASE ANSWER BOTH
#6 = NOT 20,856
#7 = NOT 5024
In: Accounting
3-year pedagogical plan for grade 4 to 6 students
In: Operations Management
Consider a mutual fund with $219 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $6 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.50%, which are deducted from portfolio assets at year-end. a. What is the net asset value at the start and end of the year?
What is the rate of return for an investor in the fund?
In: Finance