Questions
How much is the equivalent present value in year 0 for a 5-yearannuity, starting at...

How much is the equivalent present value in year 0 for a 5-year annuity, starting at the end of year 1 with $10,000 at end of each year, at an annual interest rate at 8% per year, compounded quarterly? Chose the most accurate answer

In: Finance

How long will it take $400 to double if it earns the following rates? Compounding occurs...

How long will it take $400 to double if it earns the following rates? Compounding occurs once a year. Round your answers to two decimal places. 6%. year(s) 15%. year(s) 20%. year(s) 100%. year(s)?

In: Finance

How long will it take $700 to double if it earns the following rates? Compounding occurs...

How long will it take $700 to double if it earns the following rates? Compounding occurs once a year. Round your answers to two decimal places.

  1. 7%.

    year(s)

  2. 11%.

    year(s)

  3. 18%.

    year(s)

  4. 100%.

    year(s)

In: Finance

How long will it take $100 to double if it earns the following rates? Compounding occurs...

How long will it take $100 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places.

6%.= year(s)

9%.= year(s)

21%. = year(s)

100%= . year(s)

In: Finance

following yield curve interest rate 1% 2% 3% And that the FRA (1 year, starting two...

  1. following yield curve

interest rate

1%

2%

3%

And that the FRA (1 year, starting two year from now) is 4%

  1. Calculate the implicit 1 year interest rate that we are expecting for next year and next next year

In: Finance

ONLY QUESTION 3 - PLEASE PROVIDE DETAILED INSTRUCTIONS Quality Improvement and Profitability Objective Gagnon Company reported...

ONLY QUESTION 3 - PLEASE PROVIDE DETAILED INSTRUCTIONS

Quality Improvement and Profitability Objective

Gagnon Company reported the following sales and quality costs for the past four years. Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program.

   Year      Sales Revenues Quality Costs as a
Percent of Revenues
1 $19,200,000           20%
2 20,800,000           17   
3 24,320,000           13   
4 25,420,000           9   

Required:

1. Compute the quality costs for all four years.

Quality Cost
Year 1 $
Year 2 $
Year 3 $
Year 4 $

By how much did net income increase from Year 1 to Year 2 because of quality improvements?
$

By how much did net income increase from Year 2 to Year 3 because of quality improvements?
$

By how much did net income increase from Year 3 to Year 4 because of quality improvements?
$

2. The management of Gagnon Company believes it is possible to reduce quality costs to 2 percent of sales. Assuming sales will continue at the Year 4 level, calculate the additional profit potential facing Gagnon.
$

Is the expectation of improving quality and reducing costs to 2 percent of sales realistic?
Yes

3. Assume that Gagnon produces one type of product, which is sold on a bid basis. In Years 1 and 2, the average bid was $400. In Year 1, total variable costs were $240.00 per unit. In Year 3, competition forced the bid to drop to $320.00.
Do not round the intermediate calculations and round your final answers to the nearest dollar.

Compute the total contribution margin in Year 3 assuming the same quality costs as in Year 1.
$

Now, compute the total contribution margin in Year 3 using the actual quality costs for Year 3.
$

What is the increase in profitability resulting from the quality improvements made from Year 1 to Year 3?
$

In: Accounting

1. In a debt service fund a. expenditures for interest are recognized as incurred b. fund...

1. In a debt service fund

a. expenditures for interest are recognized as incurred

b. fund transferred from the general fund to cover debt payments are recorded as revenue

c. expenditures for interest and principal are recognized when they are due

d. long-term debt is reduced by principal payments

2. a private, not-for-profit hospital received the following restricted contributions and other receipts during the year ended December 31, 20X8

1) for research $300,000

2) for equipment acquisitions $200,000

3) income from endowment to be used for new addition to hospital plant $100,0000

none of the contributions r other receipts were expended during the year ended December 31, 20X8. For the year ended December 31,

20X8, what amount would be reported on the hospital's statement of changes in net assets as an increase in temporarily restricted net assets?

3. Pine city's year end is June 30. Pine levies property taxes in January of each year for the calendar year. One-half of the levy is due in May and one-half is due in October. Property tax revenue is budgeted for the period in which payment is due. The ff information pertains to Pine's property taxes for the period from July 1 year 1 to June 30 Year 2.

Levy Year 1 $2,000,000 Levy year 2 $ 2,400,000

Collected in:

May Year 1 $ 950,000 Year 2 $ 1,100,000

July Year 1 $ 50,000 Year 2 $ 60,000

October Year 1 920,000

December Year 1 80,000

The $40,000 balance due for the May year 2 installments was expected to be collected in August year 2. What amount should Pine recognize for property tax revenue for the year ended June 30, year 2?

a. $2,160,000

b. $2,400,000

c.$2,360,000

d.$2,200,000

4.

Expenditures $30,000

Cash $30,000

the above entry for a non  profit entity most likely to record

In: Finance

Use a 5 percent discount rate to compute the NPV of each of the following series...

Use a 5 percent discount rate to compute the NPV of each of the following series of cash receipts and payments: Use Appendix A and Appendix B. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10. (For all requirements, round discount factor(s) to 3 decimal places, and all other intermediate calculations to the nearest whole dollar amount. Cash outflows should be indicated by a negative sign.)

523 and 528 are not the answer for B

In: Accounting

Use a 5 percent discount rate to compute the NPV of each of the following series...

Use a 5 percent discount rate to compute the NPV of each of the following series of cash receipts and payments: Use Appendix A and Appendix B. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10. (For all requirements, round discount factor(s) to 3 decimal places, and all other intermediate calculations to the nearest whole dollar amount. Cash outflows should be indicated by a negative sign.)

523 and 528 are not the answer for B

In: Accounting

The YTM (yield to maturity) on a one-year zero-coupon bond is 5% and the YTM on...

The YTM (yield to maturity) on a one-year zero-coupon bond is 5% and the YTM on a two-year zero-coupon bond is 6%. The treasury is planning to issue a 2-year, annual coupon bond with a coupon rate of 7% and a face value of $1,000.

a) Compute the value of the two-year coupon bond.

b) Compute the yield to maturity of the two-year coupon bond.

c) If the expectations hypothesis is correct, what is the market expectation of the price that the two-year coupon bond will sell for in one year (from today)?

d) If the liquidity preference theory is correct, what is the market expectation of the price that the two-year coupon bond will sell for in one year (from today)? Assume a liquidity premium of 1%.

In: Finance