You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for
$9,800
per year if you sign a guaranteed
5-year
lease (the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease. Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below (the equipment has an economic life of
5
years). If your discount rate is
7.1%,
what should you do?
|
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
−$40,200 |
−$1,800 |
−$1,800 |
−$1,800 |
−$1,800 |
In: Finance
Dividends per share
Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $140 par, and 67,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $75,000; second year, $159,000; third year, $188,290; fourth year, $199,770.
Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".
Year 1 Year 2 Year 3 Year 4
Preferred Stock
Common Stock
In: Accounting
Tom borrowed $600 at 10% per year, simple interest, for 3 years. How much did he have to repay (principal + interest) at the end of the 3 year period?
In: Accounting
Standard deviation is a useful concept in performance management. Let us say that a director in a local fire department wants to know any variation between the performance of this year and that of the last year. He draws a sample of 10 response times of this year ( in minutes): 3.0, 12.0, 7.0, 4.0, 4.0, 6.0, 3.0, 9.0, 11.0, and 15.0, comparing them with a sample of 10 response times last year ( in minutes): 8.0, 7.0, 8.0, 6.0, 6.0, 9.0, 7.0, 9.0, 8.0, and 6.0.
a. Does he see a performance variation by the mean? ( 10 points)
b. Does he see a performance variation by the standard deviation? If he does, is it performance improvement or deterioration from the last year? Why? ( 10 points)
c. Now, imagine that you are a citizen receiving fire protection services from the local fire department. How do you evaluate the response times of the fire department, by the mean, by the standard deviation, or by both? Please explain. ( 20 points).
In: Statistics and Probability
Python Program
Creating a Program to Calculate the Value of a Ferrari
Assignment Instructions
Implement a program that reads in a year and outputs the approximate value of a Ferrari 250 GTO in that year. Use the following table that describes the estimated value of a GTO at different times since 1962.
Year | Value |
1962-1964 | $18,500 |
1965-1968 | $6,000 |
1969-1971 | $12,000 |
1972-1975 | $48,000 |
1976-1980 | $200,000 |
1981-1985 | $650,000 |
1986-2012 | $35,000,000 |
2013-2014 | $52,000,000 |
Assignment Submission Instructions
Submit a text file containing your Python code and a document containing Python Screenshots of the executed code
In: Computer Science
Perdue Company purchased equipment on April 1 for $82,620. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $2,430. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
In: Accounting
An investor with an investment horizon of two years has two investment opportunities:
1.The first investment opportunity is to invest in two-year Treasury bond, yielding 5% per year.
2.The second opportunity is to invest in one-year Treasury bond and then after one year, to roll over an investment into another one year bond. If one year Treasury bond yields 4% and assuming that Expectation Theory holds what should one year bond yield one year from now? Explain fully and show your work. Initial response 250-300 words
In: Accounting
A company is considering a 6-year project that requires an initial outlay of $23,000. The project engineer has estimated that the operating cash flows will be $4,000 in year 1, $6,000 in year 2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000 in year 6. At the end of the project, the equipment will be fully depreciated, classified as 5-year property under MACRS. The project engineer believes the equipment can be sold for $5,000 at the end of the project. If the tax rate is 26% and the required rate of return is 18%, what is the net present value (NPV) of this project? (Answer to the nearest dollar.)
In: Finance
Oak Branch Inc. issued $860,000 of 8%, 10-year bonds when the market rate was 7%. They received $921,127. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount.
| Cash Interest Payment |
Interest on Carrying Value |
Amortization of Premium |
Carrying Value | |
| Jan. 1, Year 1 | $ | |||
| June 30, Year 1 | $ | $ | $ | |
| Dec. 31, Year 1 | ||||
| June 30, Year 2 | ||||
| Dec. 31, Year 2 | ||||
| June 30, Year 3 | ||||
| Dec. 31, Year 3 |
In: Accounting
Please use this information for the next 3 questions.
At your favorite bond store, Easy Bonds, you see the following prices:
Assume that the expectations theory of interest rates holds, no liquidity premium exists and that the bonds are equally risky and liquid. What is the current one year rate?
What is the implied one-year rate for the second year?
What is the implied one-year rate for the third year?
In: Finance