An investment of $100,000 will begin returning $11,600 annually at the end of the second year and it will continue at that rate for 10 years. If there is no cash inflow in the first year, what is its payback period?
A. 10.6 years
B. 9.9 years
C. 9.6 years
D. 9.2 years
E. 8.9 years

Simply Shoes, Inc. is evaluating an expansion that will cost $1 million and is expected to generate the following cash flows: year 1: – $350,000; year 2: +$450,000; year 3: +$675,000; and year 4: +$800,000.
What is the payback period?
A. 3.1 years
B. 3.3 years
C. 3.4 years
D. 3.7 years
E. 4.0 years

Ace Transport is considering the purchase of a new $140,000 truck. If the company expects the cash inflows to be $35,000 after the first year, $52,000 after the second year, $64,000 after the third year, and $48,000 after the fourth year, what is the NPV if the cost of capital is 8.5%?
A. $21,171
B. $32,139
C. $53,874
D. $107,458
E. $118,426

1. If a company were to choose one inventory valuation method in the current year, and then decide in the following year to change inventory valuation methods to a method that better approximates the company’s actual costs:
2. 1. Would this be accounted for as a change in accounting estimate or a change in accounting principle?   (Provide the Codification reference for your answer)
3. 2. Where is the Example provided in the Codification that illustrates the guidance for the retrospective application of a change from LIFO to FIFO (assuming it is practicable to determine the cumulative effect of the change for all prior years)?   (Provide the Codification reference for your answer)

2. ABC Company is a manufacturing company. Based on the criteria in the Codification, explain why each of the following items would or would not be included in Inventory Cost for ABC.   (Provide the Codification reference for your answer)
3. 1. Expenses incurred for marketing to sell ABC’s inventory
4. 2. General & administrative expenses incurred by ABC that are not clearly related to production
5. 3. Normal freight charges paid by ABC to its suppliers for inventory items purchased
6. 4. Abnormally high freight charges paid by ABC to its suppliers for inventory items purchased

1. A regular deposit of $100 is made at the beginning of each year for 20 years. Simple interest is calculated at i%per year for the 20 years. At the end of the 20-year period, the total interest in the account is $840. Suppose that interest of i% compounded annually had been paid instead. How much interest would have been in the account at the end of the 20 years?

2. Herman has agreed to repay a debt by using the following repayment schedule. Starting today, he will make $100 payments at the beginning of each month for the next two-and-a-half years. He will then pay nothing for the next two years. Finally, after four-and-a-half years, he will make $200 payments at the beginning of each month for one year, which will pay off his debt completely. For the first four-and-a-half years, the interest on the debt is 9% compounded monthly. For the final year, the interest is lowered to 8.5% compounded monthly. Find the size of Herman’s debt. Round your answer to the nearest dollar.

An airline records flight delays in and out of Chicago O'Hare airport for a year. The average delay for these flights is 12.66 minutes with a standard deviation of 4.17 minutes. For a sample of 77 flights, 91% of flights will have an average delay less than how many minutes?

Question 3 options:

You plan on starting a retirement fund at the end of the year. The fund earns 11% per year. You will invest X dollars into the fund. You plan to retire at the end of 40 years from now. Once you retire, you will take your entire retirement fund and transfer it into a safer investment that will only earn 5% interest per year compounded monthly. You will need $4000 per month for 30 years during your retirement to sustain your lifestyle. (After which point, RIP). Calculate exactly how much money you will deposit in your retirement account at the end of this year.

Your cousin who is the same age as you and with the same life expectancy and desired retirement age decides she will wait 10 years to start saving for retirement (so she will save for only 30 years). How much does she need to invest per year to achieve the same retirement nest egg as you when she retires?

Finally, your lazy best friend who is also your age decides he will wait 10 years to start saving for retirement just like your cousin. However, he will only save the same amount you save per year. He will retire at the same time as you and reinvest just like you do into a safer investment. He will try to live the same life style as you. How long after retirement (in months) before he is broke?

Jake Werkheiser decides to invest $4000 in an IRA at the end of each year for the next 5 years. If he makes these investments, and if the certificates pay 8%, compounded annually, how much will he have at the end of the 5 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due     

(b) Solve the problem. (Round your answer to the nearest cent.)

A family wants to have a $170,000 college fund for their children at the end of 14 years. What contribution must be made at the end of each quarter if their investment pays 7.5%, compounded quarterly?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    

(b) Solve the problem. (Round your answer to the nearest cent.)

Sam deposits $400 at the end of every 6 months in an account that pays 5%, compounded semiannually. How much will he have at the end of 3 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    

(b) Solve the problem. (Round your answer to the nearest cent.)

Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 10%, compounded monthly, if they want the balance to be $160,000 at the end of 18 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    

(b) Solve the problem. (Round your answer to the nearest cent.)

Jane Adele deposits $1,400 in an account at the beginning of each 3-month period for 9 years. If the account pays interest at the rate of 12%, compounded quarterly, how much will she have in her account after 9 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    

(b) Solve the problem. (Round your answer to the nearest cent.)

What is the PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5%

As a result of certain debt obligation a company must pay $15000 a year for the next 10 years. The next payment is due one year from now. The company wants to cancel this debt over the next 4 years. If the interest rate is 9% compounded annually, what is the payment for the next 4 years?

At the end of its fiscal year, the adjusted trial balance of Crane Company is as follows:

CRANE COMPANY Adjusted Trial Balance July 31, 2017

Debit Credit Cash $2,850 Accounts receivable 11,420 Prepaid rent 500 Supplies 750 Debt investments 8,000 Equipment 19,950 Accumulated depreciation—equipment $5,700 Patents 18,300 Accounts payable 4,265 Interest payable 750 Unearned revenue 2,050 Notes payable (due on July 1, 2019) 45,300 B. Crane, capital 28,285 B. Crane drawings 16,900 Service revenue 74,100 Interest revenue 320 Depreciation expense 2,850 Interest expense 3,000 Rent expense 18,550 Salaries expense 36,850 Supplies expense 20,850 $160,770 $160,770 Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue accounts) July 31 (To close expense accounts) July 31 (To close profit to capital) July 31 (To close drawings account)

You plan on starting a retirement fund at the end of the year. The fund earns 11% per year. You will invest X dollars into the fund. You plan to retire at the end of 40 years from now. Once you retire, you will take your entire retirement fund and transfer it into a safer investment that will only earn 5% interest per year compounded monthly. You will need $4000 per month for 30 years during your retirement to sustain your lifestyle. (After which point, RIP). Calculate exactly how much money you will deposit in your retirement account at the end of this year. Your cousin who is the same age as you and with the same life expectancy and desired retirement age decides she will wait 10 years to start saving for retirement (so she will save for only 30 years). How much does she need to invest per year to achieve the same retirement nest egg as you when she retires? Finally, your lazy best friend who is also your age decides he will wait 10 years to start saving for retirement just like your cousin. However, he will only save the same amount you save per year. He will retire at the same time as you and reinvest just like you do into a safer investment. He will try to live the same life style as you. How long after retirement (in months) before he is broke?