Your company has a $1,000,000. loan for a new assembly station. The interest rate for this loan is 7% compounded annually. Your company will make $100,000 payment at the end of each year, starting the end of the first year. By calculation, your company will make 18 annual payments. Payments for Year-1 through Year-17 are the same at $100,000. Payment for the last Year-18 will be less than $100,000. To payback this loan of 1M based on this payment plan, how much is the last payment for Year 18?
72,659.61
80,037.86
24,931.59
73,110.63
91,563.48
In: Economics
At the end of its first year of business, Fred Company reported $120,000 of unearned subscription revenues. This unearned revenue was Fred’s only temporary difference. In its second year of business, Fred reported pretax financial income of $200,000. At the end of Fred’s second year, the unearned subscription revenues account decreased to $90,000 and Fred estimates it will reverse in year 3. The enacted tax rate for every year is 20%. Prepare the journal entry to record Fred’s income tax expense, deferred taxes, and income taxes payable for its second year.
In: Accounting
Solo Corp. is evaluating a project with the following cash flows:
Year 0 Cash Flow –$ 29,100
Year 1 Cash Flow $11,300
Year 2 Cash Flow $14,000
Year 3 Cash Flow $15,900
Year 4 Cash Flow $13,000
Year 5 Cash Flow $– 9,500
The company uses an interest rate of 8 percent on all of its projects.
a. Calculate the MIRR of the project using the discounting approach.
b. Calculate the MIRR of the project using the reinvestment approach.
c. Calculate the MIRR of the project using the combination approach.
In: Finance
Please use the payback period analysis technique to analyze the cost and benefits of this project. With discount factor of 10%, the project will recover the investment in year three. please provide the numbers in the table.
|
Cash Flow |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
Cost 1 |
10,000 |
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|
Cost 2 |
5000 |
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|
Discount factor 10% |
|||||
|
Total costs |
15000 |
||||
|
Benefit 1 |
|||||
|
Benefit 2 |
|||||
|
Total Benefits |
|||||
|
Present Value Total Costs |
|||||
|
Present Value Total Benefits |
|||||
|
NPV (PV benefits- PV costs) |
In: Finance
The following is a list of prices for zero-coupon bonds with different maturities but same par value of $1,000: the 1-year zero bond sells at $1000, the 2-year zero bond sells at $862.57, the 3-year zero bond sells at $788.66, and the 4-year zero bond sells at $711.00. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. The bond has a par value of $1,000. What would be the price of the bond one year from now if the implied forward rates stay the same?
In: Finance
The following is a list of prices for zero-coupon bonds with different maturities but same par value of $1,000: the 1-year zero bond sells at $925.15, the 2-year zero bond sells at $862.57, the 3-year zero bond sells at $788.66, and the 4-year zero bond sells at $711.00. You have purchased a 4-year maturity bond with a 9% coupon rate paid annually. The bond has a par value of $1,000.
What would be the price of the bond one year from now if the implied forward rates stay the same?
In: Finance
Data for Cullumber Company is given below:
a. Cullumber Company has a beginning inventory in year one of $1,355,000 and an ending inventory of $1,650,000. The price level has increased from 100 at the beginning of the year to 110 at the end of year one. Calculate the ending inventory under the dollar-value LIFO method.
|
Ending inventory |
b. At the end of year two, Cullumber's inventory is $1,863,000 in terms of a price level of 115 which exists at the end of year two. Calculate the inventory at the end of year two continuing the use of the dollar-value LIFO method.
|
Ending inventory |
$ |
?
In: Accounting
Yep Company is considering investing in Project G or Project H. Project G generates the following cash flows: year “zero” = 254 dollars (outflow); year 1 = 244 dollars (inflow); year 2 = 346 dollars (inflow). Project H generates the following cash flows: year “zero” = 200 dollars (outflow); year 1 = 180 dollars (inflow); year 2 = 100 dollars (inflow). The MARR is 10 %. Compute the Internal Rate of Return (IRR) of the BEST project.
PLEASE INCLUDE FORMULAS AND DETAILED STEPS. THANK YOU
In: Economics
A stock was priced at $150 per share at the end of 1999. The following table shows dividends per share paid during each year and the price of the stock at the end of the year for the following four years:
year divedends paid during year stock price at end of year
2000 $3.00 $125
2001 $3.00 $150
2002 $3.50 $155
2003 $4.00$200
For each year from 2000 to 2003, calculate the dividend yield, the capital-gains yield, and the total return to the stock. Express your calculations in percentage terms
In: Economics
ou are evaluating two investment choices in order to fund an Indiana University endowment. Choice A is a 25 year annuity that pays $25,000 per year, with the first payment paid at the beginning of year 1. Choice B is a growing perpetuity that pays $20,000 per year & grows at 3% per year forever; The first payment is made at the end of year 2. Assume the required rate of return on both products is 10%? How much more will the growing perpetuity cost to purchase compared to the annuity ? Round your answer to the nearest whole dollar.
In: Finance