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)

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.

In addition, you learn that the company incurred utility costs of $38,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.

Required:
1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.
2. Prepare an income statement for each year according to the accrual accounting model.

Complete this question by entering your answers in the tabs below.

Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. (Net cash outflows should be indicated by a minus sign.)

Prepare an income statement for each year according to the accrual accounting model.

Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $57 per unit.

Required:

2. Assume the company uses variable costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing.

Required information EDIT: Variable Cost per unit is $48

[The following information applies to the questions displayed below.]

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 95,000 units and sold 74,000 units. During its second year of operations, it produced 77,000 units and sold 93,000 units. In its third year, O’Brien produced 81,000 units and sold 76,000 units. The selling price of the company’s product is $76 per unit.

4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Also:

3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,200,000 and will be depreciated using a five-year MACRS life, The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as​ follows:

Year one:   260   Year four:   350
Year two:   290 Year five:   300
Year three:   360      

If the sales price is ​$28,000 per​ car, variable costs are ​$19,000 per​ car, and fixed costs are ​$1,400,000 ​annually, what is the annual operating cash flow if the tax rate is 30​%? The equipment is sold for salvage for ​$500,000 at the end of year five. Net working capital increases by ​$500,000 at the beginning of the project​ (year 0) and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows.

1:what is the annual operating cash flow of the project for year​ 1, 2, 3, 4, 5, 6?

2: what is the​ after-tax cash flow of the equipment at​ disposal?

3: what is the incremental cash flow of the project in year​ 0, 1, 2, 3, 4, 5?

4: What is the IRR of the project?

MACRS Fixed Annual Expense Percentages by Recovery Class: