On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Promised to pay a fixed amount of $7,900 at the end of each year for nine years and a one-time payment of $118,800 at the end of the 9th year. In transaction (1), determine the present value of the debt. In transaction (2), what single sum amount must the company deposit on January 1 of this year, as well as the total interest revenue earned. In transaction (3), determine the present value of this obligation. In transaction (4), what is the amount of each of the equal annual payments that will be paid on the note? As well as the total interest expense incurred?

1. Promised to pay a fixed amount of $7,900 at the end of each year for nine years and a one-time payment of $118,800 at the end of the 9th year.
2. Established a plant remodeling fund of $492,850 to be available at the end of Year 10. A single sum that will grow to $492,850 will be deposited on January 1 of this year.
3. Agreed to pay a severance package to a discharged employee. The company will pay $76,900 at the end of the first year, $114,400 at the end of the second year, and $151,900 at the end of the third year.
4. Purchased a $179,500 machine on January 1 of this year for $35,900 cash. A five-year note is signed for the balance. The note will be paid in five equal year-end payments starting on December 31 of this year

Assume that the export price of a Toyota Corolla from Osaka, Japan, is ¥2,100,000. The exchange rate is ¥87.59 /$.

The forecast rate of inflation in the United States is 2.1 % per year and in Japan it is 0.0 % per year. Use this data to answer the following questions on exchange rate pass-through.

a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars?

b. Assuming purchasing power parity holds, what should be the exchange rate at the end of the year?

c. Assuming 100% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

d. Assuming 75% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

a. What was the export price for the Corolla at the beginning of the year expressed in U.S. dollars?

The export price for the Corolla at the beginning of the year expressed in U.S. dollars is

$__.

(Round to the nearest cent.)

b. Assuming purchasing power parity holds, what should be the exchange rate at the end of the year?

Assuming purchasing power parity holds, the exchange rate be at the end of the year should be

yen¥__ /$.

(Round to two decimal places.)

c. Assuming 100% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

Assuming 100% exchange rate pass-through, the dollar price of a Corolla at the end of the year will be

$__.

(Round to the nearest cent.)

d. Assuming 75% exchange rate pass-through, what will be the dollar price of a Corolla at the end of the year?

Assuming 75% exchange rate pass-through, the dollar price of a Corolla at the end of the year will be

$__.

(Round to the nearest cent.)

AT&T would like to test the hypothesis that the proportion of 18- to 34-year-old Americans that own a cell phone is less than the proportion of 35- to 49-year-old Americans. A random sample of 200 18- to 34-year-old Americans found that 126 owned a smartphone. A random sample of 175 35- to 49-year-old Americans found that 119 owned a smartphone. If Population 1 is defined as 18- to 34-year-old Americans and Population 2 is defined as 35- to 49-year-old Americans, and using LaTeX: \alpha α = 0.01, the conclusion for this hypothesis test would be that because the test statistic is _______________________________________________________________. less than the critical value, AT&T can conclude that the proportion of 18- to 34-year-old Americans that own a cell phone is less than the proportion of 35- to 49-year-old Americans less than the critical value, AT&T cannot conclude that the proportion of 18- to 34-year-old Americans that own a cell phone is less than the proportion of 35- to 49-year-old Americans more than the critical value, AT&T can conclude that the proportion of 18- to 34-year-old Americans that own a cell phone is less than the proportion of 35- to 49-year-old Americans more than the critical value, AT&T cannot conclude that the proportion of 18- to 34-year-old Americans that own a cell phone is less than the proportion of 35- to 49-year-old Americans none of these answers are correct

A city council has estimated that it has a surplus of $100 Million (M). The council is exploring the following three projects, each of which costs $100 M. a. A bridge which takes five years to build, then yields $50M benefit per year for the next 10 years. The benefits are received at the end of each year. Assume that the costs are spread out evenly over the five years (i.e. year 1 to year 5) and are paid at the end of each year. b. Temporary classrooms for schools yielding $50M benefit per year for five years. The benefits are received at the end of each year. Assume that all costs are paid at the end of year 1. c. Tax breaks per year to a foreign auto manufacturer for a new auto plant yielding $20M benefit per year from the third year for next 5 years. The benefits are received at the end of each year. Assume that all costs (i.e. tax breaks) are paid equally at the end of year 1 and year 2. Assuming the discount rate of 5 percent, calculate the following for each of the projects: Discounted Benefits, Discounted Costs, Net Present Value (NPV) and Benefit Cost Ratio (BCR). Which one of the above projects would you suggest that the City Council can undertake based on the BCR? Explain your answer. You should be able to use Excel for this exercise.

Please post excel screenshot as well as how to calculate each cell.

Comparing Three The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.Depreciation Methods

Waylander Coatings Company purchased waterproofing equipment on January 6 for $661,800. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a The estimated value of a fixed asset at the end of its useful life.residual value of $54,600. The equipment was used for 3,300 hours during Year 1, 2,700 hours in Year 2, 1,600 hours in Year 3, and 1,200 hours in Year 4.

Required:

1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.straight-line method, (b) the A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset.units-of-output method, and (c) the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method. Also determine the total depreciation expense for the four years by each method.

Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.

The spot price of oil is $50 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of one year. The risk-free interest rate is 5% per annum with annual compounding. According to the one-year forward price on oil in the market, the convenience benefit of carrying a barrel of oil for one year is estimated to be $2 in terms of the value at the end of one year. This implies that the one-year forward price on oil is $__________ in the market.?

According to the expectations theory, what is the expected one-year treasury security rate (i.e. forward rate, f) three years from today if today’s rates on treasury securities of different maturities are as follows:

One-year US Treasury Note: 4.5%

Two-year US Treasury Note: 4.8%

Three-year US Treasury Note: 5.2%

Four-year US Treasury Note: 5.3%

Five-year US Treasury Note: 5.3%

A machine can be purchased for $270,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied, using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 19,000 $ 28,000 $ 58,000 $ 49,500 $ 103,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)

The Newton Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next four years (Year 1, Year 2, Year 3, and Year 4) and then increase at the constant growth rate of 5% per year indefinitely. The company just paid its annual dividend in the amount of $1.50 per share. What is the current value of Newton Co.’s stock if the required rate of return is 8%?