You have a business making widgets. You are considering buying a new machine which costs $1,000,000. You expect to be able to sell it for $50,000 at the end of its useful life in 7 years and will straight-line depreciate it.

You are going to take a robot arm off an old machine to use to run the new one. The old machine could be sold for $30,000 today if you didn’t take parts off it, but is worthless without the robot arm. You also have some old material that you’re not using, which you had bought for $20,000 to make a prototype for some possible new products.

You think you will be able to sell a new type of widget that you will make on this machine. You expect to sell 50,000 per year at $25 each.

You expect $60,000 in fixed costs, and variable cost of 70% of sales on the new widgets. You also expect to need additional Net Working Capital to start the project of $75,000, which you will recover in Year 7.

Your tax rate is 35% and your cost of capital is 10%.

For the following questions showcase Step by step how to complete this using microsoft EXCEL.

Calculate the Initial Investment of the project, and the Terminal Cash Flow of the project.           

Calculate the Operating Cash Flow (OCF) for each year of the project. Remember to calculate the EBIT and show each item that goes into the OCF on its own row, and label each row you use.

Calculate the Total Cash Flow for each year of the project.

Calculate the project’s NPV (NOTE: The Excel NPV function may not work the same way as your calculator’s NPV function. If you use it, make sure to use the NPV function correctly).

State whether the firm should accept or reject the project based on NPV.

Explain why you accepted or rejected the project based on NPV. In other words, what does it mean for the NPV to be positive or negative (whichever you calculated)?

Calculate the project’s IRR (use the Excel IRR function). Based on IRR, should the firm accept the project?

State whether the firm should accept or reject the project based on IRR.

Explain why you accepted or rejected the project based on IRR (i.e., what does IRR measure?).

Calculate the Payback Period in years (to 1 decimal place).

The Comptroller has a 3-year maximum Payback Period. State whether they would accept or reject the project based on the Payback Period.

Cite one reason why either NPV or IRR are better for evaluating projects than Payback Period.

Use Google Scholar or the Library tab on Blackboard to find a research study in any area of interest to you that involves hypothesis testing. Describe the study, hypothesis test, null/alternative hypothesis, alpha value, one or two-tailed test, results, and inferences made. Please make sure you cite references to any sources you use for this question. Provide a link to the actual study so that classmates can review the hypothesis test data. Explain the inferences you make from these results, importance of this data in general, how it relates to your life, and what you find interesting about the study.

Use Google Scholar or the Library tab on Blackboard to find a research study in any area of interest to you that involves hypothesis testing. Describe the study, hypothesis test, null/alternative hypothesis, alpha value, one or two-tailed test, results, and inferences made. Please make sure you cite references to any sources you use for this question. Provide a link to the actual study so that classmates can review the hypothesis test data. Explain the inferences you make from these results, importance of this data in general, how it relates to your life, and what you find interesting about the study.

Rex buys machinery in 2016 for use in his business. The cost is $1,000,000. Depreciation

claimed before sale is $680,000. The machinery is sold in 2018 for $540,000. Complete:

Complete section 1 on form 941 with the following information:

# of employees for pay period that include September 12 – 14 employees

Wages paid third quarter - $79,750.17

Federal income tax withheld in the third quarter - $9,570.17

Taxable social security and Medicare wages - $79,750.17

Total tax deposits for the quarter $21,771.83

Complete sections 2, 3, 4, and 5 with the following information:

Cruz Company is a monthly depositor with the following monthly tax liabilities for this quarter:

July                 $7,193.10

August           $7,000.95

September     $7,577.78

State unemployment taxes are only paid to California. The company does not use a third-party designee and the tax returns are signed by the president, Carlos Cruz (Phone: 916-555-9739).

An educational psychologist studies the effect of frequent testing on retention of class material. In one of the professor's sections, students are given quizzes each week. The second section receives only two tests during the semester. At the end of the semester, both sections receive the same final exam, and the scores are summarized below.

a. Do the data indicate that testing frequency has a significant effect on performance? Use a two-tailed test with α = .01. (7 points)

b. Compute r2 and state the size of the effect (e.g. small, medium, large). (2 points)

Frequent Quizzes n=15,m=72,SS=112

two exams n=15,M=68,SS=98

QUESTION 1

You are about to enter the tax profession. Your future employer Tax Advice and Policy Services (TAPS) has stressed the importance of being able to clearly and professionally structure and present ideas, judgements and opinions. TAPS has informed you that in your new role, you could be expected to brief a wide audience including the Australian Tax Office, Treasury, international corporate taxpayers, and small business owners. TAPS is concerned that you may not fully understand the complexity of the taxation regime and the additional complications that COVID-19 has introduced to the fiscal system.

Fortunately, during your time at QUT you studied advanced tax law where the real world came to you and you heard from nine senior tax experts from around the world. Each were interviewed throughout your unit, sharing their insights into current problems and future challenges in tax.

TAPS has advised you that on your first day, you will be asked to prepare an internal briefing note to be circulated among the partners. This briefing note will be used to determine what section of the firm you are placed into. As part of that briefing note, you are asked to address the following:

c) Name one area of taxation you would like to explore further and explain why you think it is important.

You are about to enter the tax profession. Your future employer Tax Advice and Policy Services (TAPS) has stressed the importance of being able to clearly and professionally structure and present ideas, judgements and opinions. TAPS has informed you that in your new role, you could be expected to brief a wide audience including the Australian Tax Office, Treasury, international corporate taxpayers, and small business owners. TAPS is concerned that you may not fully understand the complexity of the taxation regime and the additional complications that COVID-19 has introduced to the fiscal system.

Fortunately, during your time at QUT you studied advanced tax law where the real world came to you and you heard from nine senior tax experts from around the world. Each were interviewed throughout your unit, sharing their insights into current problems and future challenges in tax.

TAPS has advised you that on your first day, you will be asked to prepare an internal briefing note to be circulated among the partners. This briefing note will be used to determine what section of the firm you are placed into. As part of that briefing note, you are asked to address the following:

B) Select one aspect of the international tax system that is particularly challenging for developing nations and explain why you think this is the case.

QUESTION 1

You are about to enter the tax profession. Your future employer Tax Advice and Policy Services (TAPS) has stressed the importance of being able to clearly and professionally structure and present ideas, judgements and opinions. TAPS has informed you that in your new role, you could be expected to brief a wide audience including the Australian Tax Office, Treasury, international corporate taxpayers, and small business owners. TAPS is concerned that you may not fully understand the complexity of the taxation regime and the additional complications that COVID-19 has introduced to the fiscal system.

Fortunately, during your time at QUT you studied advanced tax law where the real world came to you and you heard from nine senior tax experts from around the world. Each were interviewed throughout your unit, sharing their insights into current problems and future challenges in tax.

TAPS has advised you that on your first day, you will be asked to prepare an internal briefing note to be circulated among the partners. This briefing note will be used to determine what section of the firm you are placed into. As part of that briefing note, you are asked to address the following:

A) Select two aspects of the current domestic tax system that are overly complex and explain how you would reform each.

A taxpayer has the following gains and losses from property transactions in the current year: $40,000 Section 1231 gain $25,000 Section 1231 loss $12,000 Long-term capital gain $9,000 Short-term capital loss.

How are these transactions treated for tax purposes if the taxpayer recognized an $8,000 Section 1231 loss in the previous tax year?

1. $18,000 long-term capital gain
2. $15,000 Section 1231 gain; $3,000 short-term capital loss
3. $8,000 ordinary income from look-back; $10,000 long-term capital gain
4. $8,000 ordinary income from look-back; $7,000 Section 1231 gain; $3,000 long-term capital gain

can someone explain why the answer is number 3