ABC Ltd is considering an investment of $210,000 in a project that will generate revenues of $400,000 at the end of the first year, $300,000 at the end of the second year and $600,000 at the end of the third year. The expenses of the project are as follows: $250,000 in the first year, $120,000 in the second year and $300,000 in the third year. Additional to the revenue and expenses Working Capital of $150,000 is needed throughout the project. The tax rate is 30%, and tax laws allow the investment to be depreciated over three years, even though the investment has a useful life of three years. Should ABC engage the investment with a required rate of return of 15% (assume all cash flows occur at the end of the year)? – Use both NPV and IRR calculations.

A machine costing $257,500 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 475,000 units of product during its life. It actually produces the following units: 220,000 in 1st year, 124,600 in 2nd year, 121,800 in 3rd year, 15,200 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.)

Required Prepare a table with the following column headings and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.

The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others.
  

The expected value for all three years is $80.

Compute the standard deviation for each of the three years. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $275,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Required:
Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.)
  

Locate the most recent balance sheet of a publicly-traded corporation in your pathway. You can find the balance sheet within the annual report (10-K). Answer the following questions:

1. What is the name of your company and your pathway?
2. What were the total current assets this year and last year for the company you chose?
3. What were the total current liabilities this year and last year for the company you chose?
4. Calculate the Current Ratio for this year and last year for the company you chose.
5. Analyze your company's current ratio (is it good/bad; how does it compare to the prior year, etc.)
6. Include a link to the URL for your company's annual report.

The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are spread over time to reflect delayed benefits. Each year is independent of the others.
  

The expected value for all three years is $110.

Compute the standard deviation for each of the three years. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
  

year 1

year 5

year 10

Leonard Hofstadter would like to retire in 30 years (1st withdrawal in year 31). He is told by Raj Koothrappali that he will need about $230,000 per year (in t= 31 dollars) to fund his retirement. Leonard wants to be able to maintain that level of purchasing power for 25 years (Assume inflation = 2% per year). Leonard plans to increase his savings by 5% per year and expects to earn 8% per year on his investments.

What is Leonard’s retirement number? That is, how much does Leonard need to have saved by the end of year 30?

How much does Leonard have to save the first year to fund his retirement goal?

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $330,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Required:
Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.)

Firm X is considering an investment which will generate the sale of 30,000 units in Year 1. The Unit Price is $100 and COGS for the year is projected to be $ 2,000,000. S,G,& A will be 10% of …Sales and the Interest Expense will be $ 100,000. The Corporate Income Tax Rate is 30% In Year 2, unit sales will be 40,000 units. COGS is projected to be $ 3,000,000 for the second year. All other base data is forecasted to be the same as in Year 1. In Year 3, Net Income is projected to grow at a rate of 10% vs. ..prior year… The project’s Salvage Value will be $ 20,000 and other similar projects generate a 10 % rate of return. If the required initial investment is $ 1,500,000, should this project be pursued ? Why or why not ?

On January 1, 2018, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $350,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Required:
Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.)