Consider a project with free cash flows in one year of $ 133 495 in a weak market or $ 199 139 in a strong​ market, with each outcome being equally likely. The initial investment required for the project is $ 90 000​, and the​ project's unlevered cost of capital is 15 %. The​ risk-free interest rate is 9 %. ​(Assume no taxes or distress​ costs.) a. What is the NPV of this​ project? b. Suppose that to raise the funds for the initial​ investment, the project is sold to investors as an​ all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this waylong dashthat ​is, what is the initial market value of the unlevered​ equity? c. Suppose the initial $ 90 000 is instead raised by borrowing at the​ risk-free interest rate. What are the cash flows of the levered equity in a weak market and a strong market at the end of year​ 1, and what is its initial market value of the levered equity according to​ MM?

Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

Unadjusted Cost of Goods Sold equals $1,520,000, unadjusted Work in Process equals $286,000, and unadjusted Finished Goods equals $270,000.

What if any ending balance in a variance account that exceeds $9,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,050,000, the prime cost in Work in Process is $160,200, and the prime cost in Finished Goods is $128,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances?

The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.

A portion of the land owned by Timberline had been leased on April 16, 2018, to a service state operator at a yearly rental of $12,000. One year’s rent was collected in advance at the date of the lease and credited to Unearned Rental Revenue. The lease runs from April 16, 2018 through April 15, 2019.

The accounting records of Timberline Lodge are maintained on the basis of a fiscal year ending April 30. The facts listed below are to be used for making adjusting entries at April 30, 2018.

Required: Prepare the adjusting entries needed by Timberline Lodge on April 30, 2018.

A bus to carry guests to and from the airport had been rented beginning early on

April 19 from Truck Rentals, Inc., at a daily rate of $60. No rental payment has

yet been made although the bus has been used for 12 days in April.

On April 17 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,533,000; $393,000 was allocated to the basis of the land and the remaining $1,140,000 was allocated to the basis of the building. Use MACRS.

a. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3?

B. What would be the year 3 depreciation deduction if the building was sold on February 9 of year 3?

c. Answer the question in part (a), except assume the building was purchased and placed in service on February 17 instead of April 17.

Year . Depreciation Deduction

1
2
3

d. Answer the question in part (a), except assume that the building is residential property.

Year . Depreciation Deduction

1
2
3

What would be the depreciation for 2018, 2019, and 2020 if the property were nonresidential property purchased and placed in service April 17, 2001 (assume the same original basis)?

Consider the following. a. What is the duration of a four-year Treasury bond with a 4.5 percent semiannual coupon selling at par? b. What is the duration of a three-year Treasury bond with a 4.5 percent semiannual coupon selling at par? c. What is the duration of a two-year Treasury bond with a 4.5 percent semiannual coupon selling at par?

You are offered an investment that will pay you $150 at the end of year one, $250 at the end of year four, and $800 at the end of year eight. What is the total present value of these three cash flows if the discount rate is 6%?

There is a bond that pays $100 per year interest, with a $1,000 par value. It matures in 15 years. The market required yield to maturity on a comparable bond is 12%.

1. What is the value of the bond?
2. How does the value change if the yield to maturity on a comparable bond increase to 15%? What if it decreases to 8%.
3. Explain the above questions (part b) with the concepts of interest rate risk, premium bonds and discount bonds.
4. Recalculate the answer in b, with the assumption that the bond matures in 5 years (instead of 15 years).
5. Explain the above questions (part d) with the concepts of interest rate risk, premium bonds and discount bonds.

Clearly show which EQUATIONS could be used to solve the problem mathematically

Indicate the detailed steps on how to use FINANCIAL CALCULATOR or Equations from the Textbook to solve the problems.