Suppose you are given the following two projects A and B with the cash flows below, if the cost of capital is 10%, what is the Profitability Index (PI) of projects A and B?
| Year | Project A | Project B |
| 0 | -5000 | -6000 |
| 1 | 1500 | 1500 |
| 2 | 2000 | 2500 |
| 3 | 3000 | 4000 |
| 4 | 3500 | 4000 |
In: Finance
A particular investment offers the following cash flows: none for 3 years, then $1500 per year for
5 years, then $2000 per year for 10 years. The required return is 6%.
a. What is the value of the investment today?
b. What is the value of the investment in 5 years?
c. What is the value of the investment in 8 years?
In: Finance
Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $2000 loan for 30 months at 9.5% APR. What is the monthly payment? What is the first month interest?
In: Finance
(1) Firms produce what they expect to sell.
(2) Firms want to purchase 200 (million $) of newly produced capital goods; i.e., I = 200.
(3) Households spend as follows: if Y (income) is zero they spend 100 (million$) and if income rises by $1 they spend $0.80; i.e., C = 100 +0.8*Y.
Now suppose that households change behaviour: they want to save 100 more (i.e., the savings
function shifts up by 100).
In: Economics
February 2: KG PRICE PER KG AMOUNT
Purchase of Pistachios: 2500 $12 $30,000
Purchase of
Almonds: 4000 $7 $28,000
Purchas of
Peanuts 6000 $5 $30,000
February 3: KG PRICE PER KG AMOUNT
Purchase of Pistachios: 1500 $14 $21,000
Purchase of
Almonds: 2000 $8 $16,000
Purchas of
Peanuts: 2000 $6 $12,000
February 6: Sold to several clients:
KG PRICE PER KG AMOUNT
Pistachios: 2000 $22 $44,000
Almonds: 2500 $13 $32,500
Peanuts: 3000 $9 $27,000
February 6: Sold to Fruits Lovers Inc:
KG PRICE PER KG AMOUNT
Pistachios: 500 $22 $11,000
Almonds: 1000 $13 $13,000
Peanuts: 1500. $10 $15,000
February 12:
KG PRICE PER KG AMOUNT
Purchase of Pistachios: 1500 $16 $24,000
Purchase of Almonds: 2000 $10 $20,000
February 13: Sale of peanuts to peanuts lovers Inc...:
KG PRICE PER KG AMOUNT
3500 $10 $35,000
February 14: Purchase of Peanuts
KG PRICE PER KG AMOUNT
6000 $6 $36,000
February 19: Sold to several clients:
KG PRICE PER KG AMOUNT
PISTACHIOS: 1000 $23 $23,000
Almonds: 1500 $15 $22,500
Peanuts: 3000 $11 $33,000
February 25: Purchased from various suppliers:
KG PRICE PER KG AMOUNT
Pistachios: 1000 $15 $15,000
Almonds: 1000 $11 $11,000
Peanuts: 1000 $6 $6,000
Besides these transactions, the company has had the following
expenses: Salaries: $3650
Electricity bill: $360
Renting of equipment: $950
Rent of warehouse and office: $1.650 Miscellaneous: $1.250
5: Jim would like to know a forecast of the number of days to sell the inventory based on the results of the month of February. Explain your calculation and the steps followed. (10 points: 5 for calculation and 5 for explanation)
6. Jim expects that the prices of the merchandises will dramatically decrease in the next future as a result of the Covid 19 crisis. Which method of valuation of the inventory would you thus recommend to Jim? Explain your answer. (5 points)
In: Accounting
February 2: KG PRICE PER KG AMOUNT
Purchase of Pistachios: 2500 $12 $30,000
Purchase of
Almonds: 4000 $7 $28,000
Purchas of
Peanuts 6000 $5 $30,000
February 3: KG PRICE PER KG AMOUNT
Purchase of Pistachios: 1500 $14 $21,000
Purchase of
Almonds: 2000 $8 $16,000
Purchas of
Peanuts: 2000 $6 $12,000
February 6: Sold to several clients:
KG PRICE PER KG AMOUNT
Pistachios: 2000 $22 $44,000
Almonds: 2500 $13 $32,500
Peanuts: 3000 $9 $27,000
February 6: Sold to Fruits Lovers Inc:
KG PRICE PER KG AMOUNT
Pistachios: 500 $22 $11,000
Almonds: 1000 $13 $13,000
Peanuts: 1500. $10 $15,000
February 12:
KG PRICE PER KG AMOUNT
Purchase of Pistachios: 1500 $16 $24,000
Purchase of Almonds: 2000 $10 $20,000
February 13: Sale of peanuts to peanuts lovers Inc...:
KG PRICE PER KG AMOUNT
3500 $10 $35,000
February 14: Purchase of Peanuts
KG PRICE PER KG AMOUNT
6000 $6 $36,000
February 19: Sold to several clients:
KG PRICE PER KG AMOUNT
PISTACHIOS: 1000 $23 $23,000
Almonds: 1500 $15 $22,500
Peanuts: 3000 $11 $33,000
February 25: Purchased from various suppliers:
KG PRICE PER KG AMOUNT
Pistachios: 1000 $15 $15,000
Almonds: 1000 $11 $11,000
Peanuts: 1000 $6 $6,000
Besides these transactions, the company has had the following expenses:
Salaries: $3650
Electricity bill: $360
Renting of equipment: $950
Rent of warehouse and office: $1.650
Miscellaneous: $1.250
Jim’s accountant recommended that he should use the average cost method in order to determine the cost of the inventory sold but he is not sure about the consequences it may have on his financial situation.
1: Why in your opinion did Jim’s accountant recommend the average cost method and what difference is there with the three other methods? Explain the main characteristics of each method of valuation of the inventory and the consequences they may have on the valuation of the inventory and determination of the net income in case of price fluctuation
In: Accounting
Mary has on her bookshelf 5 novels, 4 biographies, and 8 textbooks.
Mary wants to take a fiction and a non-fiction book with her on a short trip.
(a) How many different ways can she do this?
(b) Mary thinks a little and then decides that she wants instead to take a novel and a biography. How many different ways can she do this?
(c) On a longer trip Mary decides to take three novels and four non-fiction books with at least one of the non-fiction books a biography. How many ways are there to make such a selection?
In: Math
The debate of whether an auditor who performs non-attest services (e.g. Consulting) for an audit client will have their independence impaired has been going on for some time in the accounting profession. While Sarbanes-Oxley Act of 2002 expressly restrict auditors from performing consulting and other non-attest services for their audit clients, the AICPA does not have such stringent restrictions.
Required: Present an argument why you believe that performing non attest services for an audit client would or would not impair an auditor’s independence for audits performed under either the PCOB auditing standards OR the AICPA auditing standards.
In: Accounting
let a be a non zero constant and consider: y''+(1/t)y'=a
a. show that 1 and ln(t) are linear independent solutions of the corresponding homogenous equation
b. using variation of parameters find the particular solution to the non homogenous equation
c. express the solution to the non homogenous equation in terms of a. and b.
d.since y itself does not appear in the equation, the substitution w=y' can be used to reduce the equation to a linear 1st order equation. use this substitution to solve for w directly using a 1st order technique and verify that the two techniques produce the same answer
In: Advanced Math
Non-Financial Performance: Many city and county governments are discovering that you can control only what you measure. As a result, many municipal governments are introducing non-financial performance measures to help improve municipal services. Use the Google search engine to perform a search for “municipal government performance measurement.” Google will provide a list of Internet sites that outline various city efforts in using non-financial performance measures. Report on the types of measures used by one of the cities from the search.
I need a well organized easy to read answer, please.
In: Accounting