Consider the following two projects:

Year                            Cash Flow (ABC)       Cash Flow (XYZ)

0                                 −$23,000                    −$23,000

1                                        10,490                 12,000

2                                        10,900                 9,360   

3                                        10,500                 10,400

Instructions:

I. Using company cost of capital 15%, calculate the following investment criteria for both projects:

1.         Payback period

2.         Internal Rate of Return (IRR)

3.         Profitability Index (PI)

4.         Net Present Value (NPV)

II. If projects A and B are independent, which one(s) will you choose? Why?

III. If projects A and B are mutually exclusive, which one will you choose? Why?

An investment will pay $20,500 at the end of the first year, $30,500 at the end of the second year, and $50,500 at the end of the third year. (FV of $1, PV of $1, FVA of $1, and PVA of $1)(Use the appropriate factor(s) from the tables provided.)

Determine the present value of this investment using a 8% annual interest rate. (Round your answer to nearest whole dollar.)

7. A stock will pay a dividend of amount Y at the end of each year for the next 14 years. At the end of the 15-th year the dividend increases by 1:5% and increases by 1:5% each year thereafter. Assuming an annual e?ective interest rate of 5%, the price of this stock is 123. Determine the value ofY.

The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people.

Make sure your answer is accurate to at least 2 significant figures (values after leading zeros)

c) What is the probability that you will die as a passenger car occupant next year?

c) What is the probability that you will died as a passenger car occupant last year?

a) What is the probability that an American chosen at random died as a passenger car occupant last year?

Problem Scenario: A visit to the eye doctor! It is the time of the year when your family makes the annual visit to the eye doctor. In preparation you and your parents are writing down the specific issues you are facing with your eyes. None of you currently wear glasses. One of your parents says that they have been having trouble lately reading the newspaper. They can only see the newspaper clearly when it is at least dn = 50 cm from their eyes. But, they can comfortably see cars that are quite far away on the road. Your other parent says that they are also having trouble reading the newspaper and can read it if it is a similar distance dn = 50 cm away. However, they are also having trouble watching farther out: they can only clearly see stuff that is at most df = 2 m away. You say that you have not had trouble reading anything close to your eyes (about 25 cm away) but you are having trouble watching out for cars that are farther than df = 2 m away. You being the physicist in the family decide to follow the scientific method and figure out what type of lenses your optometrist would prescribe. You ask your parents whether they have a preference for glasses or contact lenses. You figure out the following preferences for your family: • You prefer contact lenses • Parent 1 (can not see close by, but can see far away) say that they prefer glasses that must must be placed d, = 2 cm from their eyes • Parent 2 can not see near or far) also wants glasses which must must be placed dy = 2 cm from their eyes With the above information you set out to find the power of each lens your eye doctor will probably) prescribe.

With the scenario: answer the following questions bellow

Your final report MUST include discussions of and answers to the following questions: 1). A clear ray diagram for each part of the scenario: you, parent 1, parent 2; eye only, eye + corrective lens, corrective lens only. Clearly mark the position of the object and the image. 2). Predict the power of each corrective lens required to fix the problem for you, parent 1, parent 2.

The unemployments number of US for 2019 is 3.7%, and for the year 2010 is 9.7%

explain why we observe such a contrast.

ABC Company has the following asset on its books: Using the double declining balance depreciation method, what is the depreciation expense in years 1 through 4.

                                Truck cost                             31,000

                                Salvage value                       1,000

                                Estimated life in years             4

                                Estimated life in miles      100,000

                                Miles driven in years 1 = 25,000, year 2 = 20,000, year 3 = 33,000, year 4 = 24,000

Question 9 options:

G, a calendar year taxpayer, purchased $1,496,000 of equipment on March 23, its only purchase for the year. If the equipment is 7-year property, how much are first and second year MACRS depreciation? Assume Section 179 and bonus do not apply.

Group of answer choices

First year $213,778; second year $366,370

First year $213,778; second year $183,185

First year $106,889; second year $340,193

First year $106,889; second year $366,370

You have purchased a multi-tenant office building for $15,000,000. Your acquisition costs associated with this purchase are $25,000. The estimated land value is $3,000,000, of which you estimate the depreciable land portion at $1,000,000. You estimate the 7-year property at a value of $2,000,000. You have arranged a 70% LTV, 7-year mortgage at a 5.25% interest rate with 2 points and a 25 year amortization period. Your projected NOI in the next two years is $1,200,000 and 1,250,000 which includes projected CAPEX (above line) of $100,000 and $102,000. Your marginal tax rate is 43.4%.

What is your debt service for Year 1 and Year 2?

What is your BTCF for Year 1 and Year 2?

What is your interest expense for Year 1 and Year 2?

What is your land depreciation for Year 1 and Year 2?

What is your 7-year depreciation for Year 1 and Year 2?

What is your building depreciation for Year 1 and Year 2?

What is your amortized finance cost for Year 1 and Year 2?

What is your taxable income for Year 1 and Year 2?

What is your tax due for Year 1 and Year 2?

What is your ATCF for Year 1 and Year 2?