A corporation operates snow sports facilities in Canada. The corporation has an opportunity to lease a location in the mountains for 10 years for $60,000 per year to open a new snow sports location. They will also have access to trails in the provincial park at an additional cost of $24,000 per year for trail maintenance. To secure the lease they paid a non-refundable deposit of $10,000 last year. The corporation will be required to purchase snowshoes, cross-country skis and other equipment for an estimated amount of $275,000. The equipment is depreciated on a straight-line basis over 10 years. They also estimate that they will need to spend $25,000 to renovate the interior of the building at the start of the lease. In addition, management has provided the following information regarding the expected future annual earnings and expenses of the new project:

The appropriate discount rate for the project is 10%. Ignore taxes.

Calculate the annual incremental operating cash flow of the project using the year 1-10 cash flows only.

Incremental annual revenue = ?

Incremental annual costs = ?

Incremental annual operating cash flow = ?

NPV = ?

Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacific Northwest. The company's general pricing policy is to set prices at $128 per cubic yard. Deliveries for 2019 were 380,000 cubic yards, and total costs were:

$4,218,000 of the estimated total yard operation costs were variable, and all of the administrative costs were fixed. In addition to the costs above, estimated fixed delivery costs were $190,000 for the year, and estimated variable delivery costs were $6.00 per mile and $42.50 per truck hour. The rate per mile reflects the fact that more miles result in more gas, oil, and maintenance. The rate per truck hour reflects the fact that trucks that are waiting at a jobsite are kept running (so the concrete mix won't solidify), and drivers continue to get paid during that time.

Near the end of 2019, Fairview Construction Company asked for a delivery of 4,600 cubic yards of concrete but was unwilling to pay the regular price; it was only willing to pay $82 per cubic yard. Preston estimated that the job would require 7,200 miles of driving and 290 truck hours. The housing market in the Pacific Northwest had slowed during recent months, leaving Preston with enough capacity to fill the order, but its sales manager was reluctant to commit to such a reduced price.

REQUIRED

If Preston accepted the offer, what would the profit or loss be (enter a loss as a negative number)?

A block of mass m1 = 6 kg on a rough 30°-inclined plane is connected to a 4-kg mass (m2) by a string of negligible mass passing over a pulley shaped like a ring. The 2-kg pulley has radius 20 cm and rotates about its symmetry axis of rotation. The string causes the blocks and the pulley to rotate without slipping and without friction. The 6-kg block (m1) on the 30°slope is initially pressed against a spring near the bottom of a long rough incline, compressing the spring by 50 cm. The spring is not attached to the block and has a spring constant is 500 N/m. When the system is released, the spring returns to its equilibrium length as it projects the 6-kg block (m1) toward the top of the incline. Assume that the spring just loses contact with the block (m1) at the instant it returns to its equilibrium length. The coefficient of kinetic friction between the block (m1) and the surface of the incline is 0.2. By considering the conservation of energy and any other suitable methods: (a) Calculate the speed of the blocks at the instant the spring first returns to its equilibrium length. [v = 3.2 m/s] (b) What is the total angular momentum of the system when the spring first returns to its equilibrium length? [7.7 kg.m2/s] (c) By considering the total angular momentum of the system, find the rate of change of the angular momentum of the system after the blocks lose contact with the spring. [-0.08 m.N] (d) What is the net torque causing the angular acceleration of the system after the blocks lose contact with the spring? [-0.08 m.N]

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $763,175 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $327,075 both before and after Truman’s acquisition. In reviewing its acquisition, Truman assigned a $104,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.The following financial information is available for these two companies for 2018. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018.

Problem 3-14B Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO3-2, LO3-3, LO3-4]

Problem 3-14A Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO3-2, LO3-3, LO3-4]

Capital component weights, cost of debt, cost of preferred stock, and cost of common equity.

Be sure to use 4 decimal places.

Current assets: 3,100

Property, plant and equipment: 3,400

Total assets: 6,500.

Current liablities: 1,500

Long term debt: 1,750

Preferred stock, $100 par: 500

Common stock, no par: 1,250

Retained earnings: 1,500

Total liabilities and equities: 6,500

Growth rate 7.5%

Coupon on new bonds: 7.75%

Corporate tax rate: 25%

Dividend on preferred: 8%

Price of common stock: $24.00

Price of $100 par value preferred: $75.00

Anticipated common dividend: $1.56

Flotation cost on preferred: $4.00

Flotation cost on common: $2.50