Derek and Meagan Jacoby recently graduated from State University and Derek accepted a job in business consulting while Meagan accepted a job in computer programming. Meagan inherited $32,000 from her grandfather who recently passed away. The couple is debating whether they should buy or rent a home. They located a rental home that meets their needs. The monthly rent is $2,350. They also found a three-bedroom home that would cost $112,000 to purchase. The Jacobys could use Meagan’s inheritance for a down payment on the home. Thus, they would need to borrow $80,000 to acquire the home. They have the option of paying two discount points to receive a fixed interest rate of 4.50 percent on the loan or paying no points and receiving a fixed interest rate of 5.75 percent for a 30-year fixed loan. Though anything could happen, the couple expects to live in the home for no more than five years before relocating to a different region of the country. Derek and Meagan don’t have any school-related debt, so they will save the $32,000 if they don’t purchase a home. Also, consider the following information: The couple’s marginal tax rate is 24 percent. Regardless of whether they buy or rent, the couple will itemize their deductions. If they buy, the Jacobys would purchase and move into the home on January 1, 2018. If they buy the home, the property taxes for the year are $3,700. Disregard loan-related fees not mentioned above. If the couple does not buy a home, they will put their money into their savings account where they earn 5 percent annual interest. Assume that all unstated costs are equal between the buy and rent option. Required: Help the Jacobys with their decisions by answering the following questions: (Leave no answer blank. Enter zero if applicable.)

1. What is the approximate break-even point in years for paying the points to receive a reduced interest rate? (To simplify this computation, assume the Jacobys will make interest-only payments, and ignore the time value of money.) (Do not round intermediate calculations. Round your final answer to 1 decimal place.)

2. What is the after-tax cost (in interest and property taxes) of living in the home for 2018? Assume that the Jacobys' interest rate is 5.75 percent, they do not pay discount points, they make interest-only payments for the first year, and the value of the home does not change during the year. (Round your intermediate calculations to the nearest whole dollar amount.)

3. Assume that on March 1, 2018, the Jacobys sold their home for $133,000, so that Derek and Meagan could accept job opportunities in a different state. The Jacobys used the sale proceeds to (1) pay off the $80,000 principal of the mortgage, (2) pay a $10,000 commission to their real estate broker, and (3) make a down payment on a new home in the different state. However, the new home cost only $60,000. Assume they make interest-only payments on the loan.

Required:

3(1). What gain or loss do the Jacobys realize and recognize on the sale of their home?

3(2). What amount of taxes must they pay on the gain, if any?

"Professor James Duane from Regent University, USA advocates for constant execution of the right to remain silent and immediately calling the lawyer every time a person is questioned by the police on any topic. He has a popular YouTube lecture "Don’t talk to the Police" and the book "You Have the Right to Remain Innocent". Let’s try to probabilistically evaluate his claims using the following model.

We have individuals with no history of convictions (person NC) and with a history of convictions (person C). Suppose:

• 1) If any person remains silent, there is a 0.001 risk of his case ending up in the court.
• 2) If a person NC talks to the police, there is a 0.002 risk of the police using his words against him and his case ending up in the court.
• 3) If a person C talks to the police, there is a 0.005 risk of the police using his words against him and his case ending up in the court.
• 4) The probability of not being convicted in the court are 0.5 for person NC and 0.1 for person C.
• 5) The probability of not being convicted drops 4 times if a person did not talk to the police during the investigation, as the jury thinks he has something to hide.
• 6) If a person is convicted and talked to the police during the investigation, his sentence is reduced by 0.75 factor as he is considered cooperative.

The police arrested a person suspecting he is involved in a certain crime. The penalty for the crime is 5 years in prison."

Questions:

• a) A person has no history of convictions. What are the expected mean sentence durations he will have to spend in prison if he talks to the police or remains silent?
• b) A person has a history of convictions. What are the expected mean sentence durations he will have to spend in prison if he talks to the police or remains silent?

Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has gathered the following investment information.

(a)

Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to 0 decimal places, e.g. 125.)

(b)

Compute (1) the cash payback period and (2) the annual rate of return. (Round answers to 2 decimal places, e.g. 10.50.)

(c)

Compute the net present value of the commuter service. (Round answer to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

My question is from the textbook University Physics with Modern Physics 14th edition. Authors: Young and Freedman. It is from Chapter 23 Problem 52. The question is:

A proton and an alpha particle are released from rest when they are 0.225 nm apart. The alpha particle (a helium nucleus) has essentially four times the mass and two times the charge of a proton. Find the maximum speed and maximum acceleration of each of these particles. When do these maxima occur: just following the release of the particles or after a very long time?

Thank you!

Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has gathered the following investment information.

1.Five used vans would cost a total of $75,920 to purchase and would have a 3-year useful life with negligible salvage value. Lon plans to use straight-line depreciation.

2.Ten drivers would have to be employed at a total payroll expense of $48,700.

3.Other annual out-of-pocket expenses associated with running the commuter service would include Gasoline $16,100, Maintenance $3,200, Repairs $4,300, Insurance $4,000, and Advertising $2,500.

4.Lon has visited several financial institutions to discuss funding. The best interest rate he has been able to negotiate is 15%. Use this rate for cost of capital.

5.Lon expects each van to make ten round trips weekly and carry an average of six students each trip. The service is expected to operate 30 weeks each year, and each student will be charged $12 for a round-trip ticket.

a. Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to 0 decimal places, e.g. 125.)

b. Compute (1) the cash payback period and (2) the annual rate of return. (Round answers to 2 decimal places, e.g. 10.50.)

c. Compute the net present value of the commuter service. (Round answer to 0 decimal places, e.g. 125.)

New Product Analysis

You have recently graduated from a University with a BBA degree, and you have taken a job with a local manufacturing company. Your boss has asked you to analyze a potential new product, and to recommend if the company should produce and sell the product. Specifically, your boss wants you to prepare a spreadsheet that shows the free cash flows the product would generate, and shows what the product’s net present value and internal rate of return are and what your recommendation is

Marketing information

Your company already has spent $80,000 to conduct market research about the demand for the product, which indicates the optimal wholesale price for the product would be $12.00 per unit, based on the prices of similar products that competitors sell. The market research also indicates that demand for the product would last for five years. At a price of $12.00 per unit, the market research suggests that sales would be 200,000 units in the first year, and unit sales would increase 10% per year over the remaining four years of the product’s life.

Production information

Your company’s production manager estimates manufacturing the product would require a machine that costs $900,000, and falls in the 3-year MACRS depreciation class. The machine’s expected salvage value in five years is expected to be $150,000. The production manager also estimates the product’s variable costs, consisting of raw materials and labor, would be $9.50 per unit, and the annual fixed costs excluding depreciation would be $200,000. He states the product could be manufactured in a building for which your company has no other use.

Financial information

Your company’s stock price is $41.10 per share, the last annual dividend was $1.75 per share, and market analysts who follow your company’s stock expect the dividends to grow forever at a rate of 4.5% per year. The company’s beta is 1.35 and Treasury bills are paying 2.0% per year. The company’s bonds have a par value of $1,000, pay a coupon of 5.0% per year, semiannually, have 15 years to maturity, and are trading at $925.

The company’s treasurer estimates that the new product would require a $300,000 increase in net working capital. She also has told you the company’s target capital structure is 40% debt and 60% equity, the company’s tax rate is 25%, and she expects the stock market return over the next year will be 7.0%.

Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has gathered the following investment information.

Click here to view PV table.

(a)

Determine the annual (1) net income and (2) net annual cash flows for the commuter service. (Round answers to 0 decimal places, e.g. 125.)

(b)

Compute (1) the cash payback period and (2) the annual rate of return. (Round answers to 2 decimal places, e.g. 10.50.)

(c)

Compute the net present value of the commuter service. (Round answer to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

A recent college graduate from Clayton State University has the choice of buying a new car for $33,500 or investing the money for four years with an 11% expected annual rate of return. He has an investment of $41,000 in equities and bonds which yields 8% expected annual rate of return. If the graduate decides to purchase the car, the best estimate of the opportunity cost of that decision is ________.

Question 2 options:

Being an auditor You have recently graduated from your university and started work with an accounting firm. You meet an old school friend, Kim, for dinner—you haven’t seen each other for several years. Kim is surprised that you are now working as an auditor because your childhood dream was to be a ballet dancer. Unfortunately, your knees were damaged in a fall and you can no longer dance. The conversation turns to your work and Kim wants to know how you do your job. Kim cannot understand why an audit is not a guarantee the company will succeed. Kim also thinks that company managers will lie to you to protect themselves, and as an auditor you would have to assume that you cannot believe anything a company manager says to you.

Required: Compose a letter to Kim explaining the concept of reasonable assurance, and how reasonable assurance is determined. Explain why an auditor cannot offer absolute assurance. Describe the concept of professional skepticism and how it is not the same as assuming that managers are always trying to deceive auditors. Explain to Kim why her perceptions are a perfect example of the expectations gap.

**For Accounting - Audit Class. Please write a short essay on the above. Please type your word. Do not send a picture or your handwriting.