Taxpayers subject to the passive loss limitation must file Form 8582-CR for what purpose? To determine the amount of passive activity credit (PAC) for the current year. To determine the amount of passive activity credit (PAC) for the current year, including any prior-year unallowed PAC they may claim in the current year. To correct the amount of passive loss claimed in a prior year. To correct the amount at risk determined in a prior year.
In: Accounting
Assume a commercial building is selling for $500,000 and will have rental income as follows: year 1: 40,000; year 2: 45,000; year 3: 52,000; year 4: 56,000; year 5: 63,000. You have good estimates of future value and expect to be able to sell it for $700,000 at the end of year 5. Your required rate of return is 9%. According to your NPV analysis should you buy the building?
In: Finance
You are given information on the following alternative cash flow streams. Assuming an interest rate of 8% p.a. which alternative cash flow stream has the lowest future value at the end of year 7?
Group of answer choices
$20,000 per year, at the end of each year, for the next 7 years.
$50,000 at the end of year 1 and $70,000 at the end of year 2.
$100,000 today.
$160,000 at the end of year 5.
In: Finance
What is the internal rate of return, net present value with a 10% interest rate, and net present value with a 20% interest rate of this project. The cash flows are as follows:
Year 0 - Initial investment - 20,000 (make sure to make investments negative values in Excel cash flow)
Year 1 - 8,000
Year 2 - 8,000
Year 3 - 9,000
Year 4- 12,000
No value after year 4.
In: Finance
"A new asset is available for $236,000. O&M costs are $10,000 each year for the first five years, $13,300 in year six, $19,300 in year seven, and $28,800 in year eight. Salvage values are estimated to be $144,000 after one year and will decrease at the rate of 49% per year thereafter. At a MARR of 10%, determine the economic service life of the asset. Enter your answer as an integer from 1 to 8."
Answer is 8
In: Accounting
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
$900 per year for 12 years at 10%.
$
$450 per year for 6 years at 5%.
$
$700 per year for 6 years at 0%.
$
Rework parts a, b, and c assuming they are annuities due.
Future value of $900 per year for 12 years at 10%: $
Future value of $450 per year for 6 years at 5%: $
Future value of $700 per year for 6 years at 0%: $
In: Finance
In: Finance
Consider this scenario: The population of a city increased steadily over a six-year span. The following ordered pairs show the population and the year over the six-year span (population, year) for specific recorded years.
(3,700, 2000), (3,900, 2001), (4,800, 2003), (5,950, 2006)
Use linear regression to determine a function y, where the year y depends on the population x, to five decimal places of accuracy. Use your function to predict when the population will hit 12,000. (Round your answer down to the nearest year.)
The population will hit 12,000 in the year ???? .
In: Statistics and Probability
Consider this scenario: The population of a city increased steadily over a six-year span. The following ordered pairs show the population and the year over the six-year span (population, year) for specific recorded years.
(3,700, 2000), (3,900, 2001), (4,800, 2003), (5,950, 2006)
Use linear regression to determine a function y, where the year y depends on the population x, to five decimal places of accuracy. Use your function to predict when the population will hit 12,000. (Round your answer down to the nearest year.)
The population will hit 12,000 in the year ???? .
In: Statistics and Probability
One year ago, the Tyler Rose closed-end fund had a NAV of $35.19 and was selling at an 11% discount. Today, the fund has a NAV of $36.42 and is selling at a 7.5% premium. During the year, the fund paid a dividend distribution of $.48 and a capital gain distribution of $.97.
A. Calculate the NAV-based HPR for the fund for the year.
B. Calculate the market-based HPR for the fund for the year.
C. Recalculate the market-based HPR for the fund for the year, assuming the fund was selling at an 8.8% premium at the beginning of the year and an 11.3% discount at the end of the year.
In: Finance