Questions
You are a project manager evaluating the following three projects               Year                Project A &

  1. You are a project manager evaluating the following three projects

              Year                Project A                       Project B                       Project C

              0                     -$150,000                      -$300,000                      -$150,000

              1                     $110,000                       $200,000                       $120,000

              2                     $110,000                       $200,000                       $90,000

The relevant discount rate ( r ) is 12% a year

Calculate the PI for each of the three projects.

  1. Calculate the NPV for each of the three projects.
  2. If the projects were independent, and according to the PI rule, which project(s) would you choose?
  3. If the projects were mutually exclusive, what project(s) would you choose according to the PI rule? Justify your answer, by using the incremental argument or otherwise. (please full explain)
  4. If the budget of the company is $450,000, and the projects are indivisible, which project(s) would you choose?

In: Finance

What is the value today of a money machine that will pay $1,190.00 per year for...

What is the value today of a money machine that will pay $1,190.00 per year for 21.00 years? Assume the first payment is made 10.00 years from today and the interest rate is 13.00%.

In: Finance

In view of the sluggish sales in the year 2019, Panasonic continued to search for new...

In view of the sluggish sales in the year 2019, Panasonic continued to search for new business opportunities by securing new agency with growth potential.

b) If you hired as the organisation consultant, suggest a way to improve their current supply chain to suit in the Malaysia market (40 Marks)

Would really appreciate if you do not copy paste your answers from other sources and do use your own words and answer according to the marks requirement.

In: Economics

Determine the amount of the standard deduction for each of the following taxpayers for tax year...

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2017:

Christina, who is single.

Adrian and Carol, who are filing a joint return. Their son is blind.

Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions.

Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents.

Rodolfo, who is over 65 and is single.

Bernard, who is a nonresident alien with U.S. income.

Manuel, who is 70, and Esther, who is 63 and blind, will file a joint return.

Herman, who is 75 and a qualifying widower with a dependent child.

In: Accounting

Suppose a committee wants to decide the service award for last year. There are a total...

Suppose a committee wants to decide the service award for last year. There are a total of 6 candidates, Alice, Brigitte, Chris, Dave, Emma, and Frank. Among the six candidates, Alice, Brigitte, and Emma are females and the rest three are males. The committee must decide exactly three people to be awarded, and the nominations must meet all of the following criteria. At least one female must be nominated; Chris and Emma cannot be both nominated; Since Alice and Brigitte work together all the time last year, if one of them is nominated, so is the other; Exactly one of the two people Chris and Dave will be nominated; The nomination cannot be a list containing exactly Alice, Brigitte, and Chris; If Chris cannot get the nomination, neither can Brigitte. Now, as the chair of the committee, how do you decide the nominations?

In: Statistics and Probability

(a) What is the future value of a 4-year ordinary (regular) annuity of $2,750 if the...

(a) What is the future value of a 4-year ordinary (regular) annuity of $2,750 if the appropriate interest rate is 5.6%? (b) What is the present value of this 4-year ordinary annuity? (c) What would the i) future, and ii) present value, be if this annuity were an annuity due (still 4 years)? Hint: set your calculator to BGN, there is a video in M2 that shows you how to do this. Don’t forget to reset to “END” after you work an annuity due problem. FV = PV =

Compare the results you got in part b for present and future value of a "regular" annuity and compare these to the values you got for the annuity due (part c). What is the relationship that you see? Using the time value of money concepts you have learned so far, why does this relationship (PV of regular annuity vs. annuity due and FV of regular annuity vs. annuity due occur? Pleas show work.

In: Finance

Mr. Kent is working on the evaluation of a new project for his company. In year...

  1. Mr. Kent is working on the evaluation of a new project for his company. In year 3 of his evaluation, he estimates that sales and cost of sold would be $5.8 million and $3.48 million, respectively. The cost of the machine is $1 million, and it would depreciate using the straight line method for a useful life of 5 years. The corporate tax rate is 35 percent. Moreover, he expects an increase in working capital from $210,000 in year 2 to $305,000 in year 3. What are the pro forma earnings and cash flows for year 3?

In: Finance

Question 1 a.) All receivables that are expected to be realized in cash within a year...

Question 1

a.) All receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet.

Select one:

True

False

b.) Receivables NOT currently collectible are reported in the investments section of the balance sheet.

Select one:

True

False

c.) The maturity value of a 12%, 60-day note for $5,000 is $5,600.

Select one:

True

False

d.) The selling of a company's receivables is called factoring.

Select one:

True

False

e.) Uncollectible Accounts Expense is a contra asset account.

Select one:

True

False

f.) At the end of a period before the accounts are adjusted Allowance for Doubtful Accounts has a balance of $250, and net sales on account for the period total $500,000. If uncollectible accounts expense is estimated at 1% of net sales on account, the current provision to be made for uncollectible accounts expense is $5,000.

Select one:

True

False

g.) Allowance for Doubtful Accounts is a contra asset account.

Select one:

True

False

h.) The difference between the total receivables and the balance in Allowance for Doubtful Accounts at the end of a period is referred to as the net realizable value of the accounts receivable.

Select one:

True

False

Question 2

a.) Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $900,000, the amount of the adjustment to record the provision for doubtful accounts is:

Select one:

$9,500

$500

$8,500

$9,000

b.)Allowance for Doubtful Accounts has an unadjusted balance of $400 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $300,000, the amount of the adjustment to record the provision for doubtful accounts is:

Select one:

$3,000

$3,400

$400

$2,600

Question 3

a.) Which of the following inventories would appear on the balance sheet of a manufacturing business?

Select one:

Work in process

Merchandise inventory

Direct labor

Factory overhead

b.) The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called:

Select one:

first-in, first-out

last-in, first-out

average cost

retail method

c.) Which inventory cost flow assumption allows management to identify which costs are included in cost of merchandise sold?

Select one:

LIFO

FIFO

Average

Specific Identification

d.) The inventory data for an item for November are:

Nov. 1

Inventory

20 units at $20

10

Purchased

30 units at $21

30

Purchased

10 units at $22

Sold

30 units

Using the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30?

Select one:

$640

$610

$620

$630

Question 4

a.) Use the following data to calculate cost of merchandise sold under FIFO method.

September 1

Beginning Inventory

15 units @ $20

September 10

Purchases

20 units @ $25

September 20

Purchases

25 units @ $28

September 30

Ending Inventory

30 units

Select one:

$825

$750

$675

$600

b.)Use the following data to calculate the cost of ending inventory under LIFO using the method.

September 1

Beginning Inventory

15 units @ $20

September 10

Purchases

20 units @ $25

September 20

Purchases

25 units @ $28

September 30

Ending Inventory

30 units

Select one:

$825

$750

$675

$600

c.)Use the following data to calculate the cost of ending inventory under Average Cost method.

September 1

Beginning Inventory

15 units @ $20

September 10

Purchases

20 units @ $25

September 20

Purchases

25 units @ $28

September 30

Ending Inventory

30 units

Select one:

$825

$750

$675

$600

d.)Calculate the cost of ending inventory using FIFO inventory cost method.

1/1

Beginning inventory

10 units @ $10 per unit

2/28

Purchases

40 units @ $12 per unit

5/10

Purchases

50 units @ $14 per unit

9/20

Purchases

30 units @ $16 per unit

12/31

Ending inventory

50 units

Select one:

$800

$760

$580

$500

Question 5

During a period of consistently rising prices, the method of inventory that will result in reporting the greatest cost of merchandise sold is:

Select one:

FIFO

LIFO

average cost

all methods will generate the same cost of merchandise sold

Question 6

a.) If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is:

Select one:

average

LIFO

FIFO

all methods will generate the same net income

b.) If merchandise inventory is being valued at cost and the price level is consistently rising, which method of costing will yield the largest gross profit?

Select one:

average cost

LIFO

FIFO

all methods will generate the same gross profit

c.) “LIFO Reserve" is calculated as __________.

Select one:

LIFO end of year minus LIFO beginning of the year

FIFO inventory plus LIFO inventory

FIFO inventory minus LIFO inventory

None of the above

d.) If the cost of an item of inventory is $60 and the current replacement cost is $65, the amount included in inventory according to the lower of cost or market is:

Select one:

$5

$60

$65

$125

e.)If the cost of an item of inventory is $70, the current replacement cost is $65, and the sales price is $85, the amount included in inventory according to the lower of cost or market is:

Select one:

$85

$70

$65

$160

In: Accounting

Sand Technologies: Income Statements for Year Ending December 31            (in thousands)          ...

Sand Technologies: Income Statements for Year Ending December 31           
(in thousands)           2019   2018  
Sales               $945,000   $880,000  
Expenses excluding depreciation and amortization   822,150   730,400  
EBITDA               $122,850   $149,600  
Depreciation and amortization       32,400   31,500  
EBIT               $90,450   $118,100  
Interest Expense           10,470   8,600  
EBT               $79,980   $109,500  
Taxes (40%)               31,992   43,800  
Net income           $47,988   $65,700  
                      
Common dividends           $38,050   $55,390  
Addition to retained earnings       $9,938   $10,310  
                      
Sand Technologies: December 31 Balance Sheets          
(in thousands)                  
Assets               2019   2018  
Cash and cash equivalents       $53,400   $44,685  
Short-term investments           8,500   12,450  
Accounts Receivable           283,500   275,880  
Inventories               141,750   135,000  
Total current assets           $487,150   $468,015  
Net fixed assets           425,600   401,400  
Total assets               $912,750   $869,415  
                      
Liabilities and equity                  
Accounts payable           $94,500   $90,000  
Accruals               46,850   42,750  
Notes payable           32,362   54,565  
Total current liabilities           $173,712   $187,315  
Long-term debt           194,500   147,500  
Total liabilities           $368,212   $334,815  
Common Stock           444,600   444,600  
Retained Earnings           99,938   90,000  
Total common equity           $544,538   $534,600  
Total liabilities and equity           $912,750   $869,415  
                      
Key Input Data                  
Tax rate               40%      
                      
NAME:      SECTION:   FALL 2020  
                      
Net operating working capital -- NOWC              
2019   NOWC =    Operating current assets   -   Operating current liabilities      
2019   NOWC =       -         
2019   NOWC =                  
                      
2018   NOWC =    Operating current assets   -   Operating current liabilities      
2018   NOWC =       -         
2018   NOWC =                  
                      
Total net operating capital -- OC              
2019   OC =    NOWC   +   Net Fixed assets      
2019   OC =       +         
2019   OC =                  
                      
2018   OC =    NOWC   +   Net Fixed assets      
2018   OC =       +         
2018   OC =                  
                      
                      
Net operating profit after taxes              
2019   NOPAT =    EBIT   x   ( 1 - Tax rate )      
2019   NOPAT =       x         
2019   NOPAT =                  
                      
Operating Cash Flow (OCF)               
2019   OCF=   NOPAT   +   Depreciation      
2019   OCF=      +         
2019   OCF=                 
                      
Free cash flow                  
2019   FCF =    NOPAT   -   Net investment in operating capital  
2019   FCF =       -         
2019   FCF =                  
                      
Return on invested capital                  
2019   ROIC =    NOPAT   /   Total net operating capital -- 2019 OC  
2019   ROIC =       /         
2019   ROIC =                  
                      
Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $48.50 per share, and the after-tax cost of capital was 6%. Calculate EVA and MVA for the most recent year.

                      
Additional Input Data                  
Stock price per share   $48.50              
# of shares (in thousands)   15,000              
After-tax cost of capital   6.0%              
                      
Market Value Added                  
MVA =    Stock Price   x   # of shares   -   2019 Total common equity
      x             
              -     
MVA =                      
                      
Economic Value Added                  
EVA =    NOPAT   -   (Operating Capital -- 2019 OC   x   After-tax cost of capital -- WACC)
       -      x     
      -             
EVA =                      

In: Finance

At the beginning of the year, Grouper Ltd. had 910 units with a cost of $5...

At the beginning of the year, Grouper Ltd. had 910 units with a cost of $5 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

Jan. 3 Sold 730 units on account for $10 each.
9 Purchased 970 units on account for $6 per unit.
15 Sold 840 units for cash at $9 each.

Prepare journal entries for these January transactions assuming that Grouper Ltd. uses FIFO under a periodic inventory system. Grouper updates records at month end.


Date

Account Titles and Explanation

Debit

Credit

Jan. 3

9

15

31

In: Accounting