Machine X has a first cost of $70,000 and an operating cost of $21,000 in year 1, increasing by $500 per
year through year 5 with a salvage value of $13,000. Machine Y has a first cost of $62,000 and an operating cost of
$21,000 in year 1, increasing by 3% per year through year 10 with a salvage value of $2000. If the interest rate is
i 13% per year, evaluate which machine must you choose on the basis of:
(a) the present worth analysis,
(b) the conventional B/C analysis

With explanation of Pa , Pc, Ps PW for plan X

Pa ,Ps PW, for plan Y

Delta (C+O) , delta B , Delta B/C

Ringmeup, Inc., had net income of $137,200 for the year ended December 31, 2016. At the beginning of the year, 39,000 shares of common stock were outstanding. On May 1, an additional 16,000 shares were issued. On December 1, the company purchased 4,700 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid the annual dividend on the 9,000 shares of 3.65%, $100 par value preferred stock that were outstanding the entire year.

Required:

Calculate basic earnings per share of common stock for the year ended December 31, 2016

. Consider the following interest-rate swap:

• the swap starts today, January 1 of year 1 (swap settlement date)

• the floating-rate payments are made quarterly based on actual / 360

• the reference rate is 3-month LIBOR

• the swap rate is 6%

• the notional amount of the swap is $40 million

• the term of the swap is three years

(a) Suppose that today’s 3-month LIBOR is 5.7%. What will the fixed-rate payer for this interest rate swap receive on March 31 of year 1 (assuming that year 1 is not a leap year)?

(b) What will the fixed-rate payer for this interest rate swap pay on March 31 of year 1 (assuming that year 1 is not a leap year)?

Compound annuity​) What is the accumulated sum of each of the following streams of​ payments?

a. ​$ 520 year for 9 years compounded annually at 11percent.

b. ​$ 108 year for 6 years compounded annually at 9 percent.

c. ​$ 33 year for 12 years compounded annually at 13 percent.

d. ​$ 24 year for 5 years compounded annually at 4 percent.

A. What is the accumulated sum of ​$ 520 year for years compounded annually at 11 ​percent?

​$(Round to the nearest​ cent.)

B. What is the accumulated sum of ​$ 108 a year for 6 years compounded annually at 9 ​percent?

​$ ​(Round to the nearest​ cent.)

C. What is the accumulated sum of ​$ 33 year for 12 years compounded annually at 13 ​percent?

​$ ​(Round to the nearest​ cent.)

D. What is the accumulated sum of ​$ 24 year for 5 years compounded annually at 4 ​percent?

​$ ​(Round to the nearest​ cent.)

Consider a world in which there are just three goods: teepees, tobacco, and corn. Listed below are the prices and quantities of these goods produced in the base year and in the current year.

Using the GDP Deflator calculation, between the base year and the current year there has been

level

Dain's Diamond Bit Drilling purchased the following assets this year:

Assume its taxable income for the year was $59,500 before deducting any 179 expense (assume no bonus depreciation but assume that the 2014 179 limits are extended to 2015).

Required:

a. What is the maximum amount of 179 expense, Dain may deduct for the year?

b. What is Dain's maximum depreciation expense for the year (including 179 expense)?

c. If the February drill bits' original basis was $2,382,500, what is Dain's maximum 179 expense for the year?

d. If the February drill bits' basis was $2,502,500, what is Dain's maximum 179 expense for the year?

Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1. Net income for the year was $570. During the year, equipment costing $800 was purchased when the company paid cash of $640 and issued common shares worth $160. Near the end of the year, equipment costing $60 with accumulated depreciation of $16 was sold for $54. At the end of the year, accounts receivable was $250, accounts payable was $36 and accumulated depreciation was $144. A bank loan of $140 was received during the year to help finance operations. At the end of the year, the bank had been paid $52 including $14 of interest. Based on the above information, please prepare the statement of cash flows for the year ended December 31, 20X1 using the indirect method.

Part B: How does the information in the statement of cash flows help the user of the financial statement?

A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.

A. Calculate the test statistic. (Use current year airfare − previous year airfare. Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)

B. What is the sample mean domestic airfare (in dollars) for business travel for each year?

current$ previous$

C. What is the percentage change in mean airfare for the one-year period? (Round your answer to one decimal place.)

Development cost and timing: $8 million over 2 years

Time period 5 years

Ramp-up cost: $4 million over 1 year, starting 1st quarter of year 2.

Marketing and support cost: $1.6 million/year, starting 3rd quarter of year 2.

Unit production cost: $550/unit.

Sales and Production volume: 20,000 units/year, starting 3rd quarter of year 2

Discount rate: 3 percent per quarter Unit Price: $1200/unit

1) Using Excel Calculate the NPV for the total period. Calculate the PV for the 1st quarter of the 4th year Calculate the PV for the 2nd quarter of 2nd year What decision (Go or No-Go) will you make for this product based on the NPV? If your development cost were to go up by 25% what is your resulting NPV?