Calculate the Profitability Index and the Net Present Value of the following project:

Year 0 Investment 75,000

Year 1 Income 25,000 PI ______________

Year 2 Income 35,000

Year 3 Investment 10,000 NPV ____________

Year 4 Income 40,000

Discount Rate 9% Go or No Go?

Common stock in the amount of $ 23,000 was issued and dividends of $ 6,600 were paid during the year. What is the amount of net income for the year?

Find the present value of a 20 year annuity due where payments are $1, 000 at the beginning of the first year, third year, etc. and payments are $1, 500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5%. Hint: Draw a time diagram!!!

A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:

1. A two-year insurance premium of $5,280 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
2. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.

Suppose the spot exchange rate between Brazilian real and euros is S0BRL∕EUR= BRL 2.9488∕EUR. Calculate forward exchange rates at 1-year,2-year, and 3-year horizons under these two scenarios. a. Yield curves in euros and real are flat. Annual Eurocurrency interest rates are iBRL= 5 percent and iEUR= 1 percent for the next several years.

b. The euro yield curve is flat at iEUR= 1.0 percent per year. Brazilian real interest rates are 5.5 percent per year at a 1-year horizon, 5.0 percent at a2-year horizon, and 4.8 percent at a 3-year horizon.

Bank Accounts in Java!

Design and implement a Java program that does the following:

1) reads in the principle

2) reads in additional money deposited each year (treat this as a constant)

3) reads in years to grow, and

4) reads in interest rate

And then finally prints out how much money they would have each year.

See below for formatting.

Enter the principle: XX

Enter the annual addition: XX

Enter the number of years to grow: XX

Enter the interest rate as a percentage: XX

Year 0: $XX

Year 1: $XX

Year 2: $XX

Year 3: $XX

Year 4: $XX

Year 5: $XX

A specialist graphics company is investing in a new machine which enables it to make high quality prints for its clients. Demand for these prints is forecast to be around 50,000 units in year 1 and 80,000 units in year 2. The maximum capacity of each machine the company will buy to process these prints is 60,000 units per year. They have a fixed cost of RM40,000 per year and a variable processing cost of RM0.50 per unit. The company believe they will be able to charge RM2 per unit for producing the prints.

1. Calculate the total cost for year 1.
2. What is the total profit for year 1?
3. Calculate the total cost for year 2.   
4. What is the total profit for year 2?

Question 1.

Determine the future worth in year 10 of a cash flow series that starts in year 0 (today) at $25,000 and decreases by 6% per year (through year 10). Use an interest rate of 6%.

Question 2.

Person opens a savings account today. In year 1, she deposited $5,000. She made no deposits in year 2 and 3 and then deposit $2,000 each for years 4 trough 6. Given an interest rate of 4%, how much would she have needed to deposit each year if she made expial payments in years 1 through 6 to have the same amount in the account at the end of year 6?

Sam buys 100 shares of Acme stock at $100 per share on January 1, Year 1. At the end of the first year (December 31, Year 1), she buys 100 more shares at $120 per share. At the end of the second year (December 31, Year 2), she buys another 100 shares for $135 per share. The stock pays a dividend of $2.00 per share on December 29th of each year. Acme is trading at $169.80 as of December 31, Year 3. What is the time weighted return for Acme since January 1, Year 1 to today?

a. 21.00%.

b. 21.81%.

c. 23.21%.

d. 25.00%.

A public school district is investigating whether to purchase a new school bus to take over the rural-most route in the district. They have two options:

A modern, eco-friendly bus complete with seat belts and air conditioning, will have a first cost of $95,000, cost savings (in terms of fuel efficiency and maintenance costs) of $20,000/year the first year, and decreasing by $1000 per year thereafter (so $19,000 the second year, 18,000 the third year, etc…). It’s estimated that the salvage value will be $8,000 at the end of its 20 year life.

A more basic bus will have a first cost $70,000, cost savings of $14,000 per year decreasing by $500 per year each year thereafter (so $13,500 the second year, $13,000 the third year, etc.).It is estimated that the salvage value will be $5000 at the end of its 20-year life.

Assume that the school district also has the option to stay with their current fleet (so the do nothing option is also available).

A) Use Benefits to Costs analysis to determine which of the options, if any, would be most economical for the school district if their MARR is 5%.

B) Compute the value of X- i.e., the first cost of the modern bus- that makes the two alternatives in this example equally desirable:

C) In this problem only the economic consequences were evaluated. Do you think this type of decision is only economic, or are there other factors that could/would/should be considered? Briefly discuss…

(if using excel please provide code)