A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower s payment during the 2nd year of the loan?

A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.35%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp. The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75% At the first reset date, 1 year LIBOR is at 3%. What is the borrower s payment during the 2nd year of the loan

1. Perth International Co., an Australian multinational company, forecasts 66 million Australian dollars (A$) earnings next year (i.e., year-one). It expects 52 million Chinese yuan (CNY), 49 million Indian rupees (INR) and 35 million Malaysian ringgit (MYR) proceeds of its three subsidiaries in year-one. It also forecasts the year-one exchange rates A$0.3274/CNY, A$0.0441/INR and A$0.6657/MYR.

            Calculate the total Australian dollar (A$) cash flow for year-one.

            The answer for this question is $108485200

2. Perth International anticipates a 5.55 per cent increase in the year-one income of its subsidiaries in year-two. It has information that the current 5.63 per cent, 8.27 per cent, 13.90 per cent and 11.71 per cent nominal interest rate in Australia, China, India and Malaysia, respectively, will remain the same in the next three years. Due to foreign currency higher nominal interest rate, subsidiaries will invest 20 per cent, 55 per cent and 36 per cent of their year-two earnings in China, India and Malaysia, respectively, for next year. Subsidiaries will remit their remaining incomes (i.e., after investment) to the Australian parent. Perth International believes in the International Fisher Effects with considering a 2.69 per cent real interest in Australia, China, India and Malaysia to calculate the expected foreign currency value against the Australian dollar for year-two based on the year-one exchange rates A$/CNY, A$/INR, and A$/MYR.

What is the total Australian dollar (A$) cash flow for year-two? (Enter the whole number with no sign or symbol)

3. In year-three, Perth International has a plan to expand the business in China, India and Malaysia. Consequently, it forecasts an 9.97 per cent increase in year-one earnings of its subsidiaries in year-three. Perth International anticipates 3.64 per cent, 7.70 per cent, 11.47 per cent and 9.44 per cent inflation in Australia, China, Indian and Malaysia, respectively, in year-three. It considers the Purchasing power parity to calculate the value of CNY, INR and MYR against the Australian dollar in year-three using the year-two exchange rates A$/CNY, A$/INR, and A$/MYR.

What is the total Australian dollar (A$) cash flow for year-three? (enter the whole number with no sign or symbol)

PLEASE PROVIDE NUMBERS AS WHOLE NOT AFTER ROUNDING THEM IN MILLIONS. I NEED NUMBERS IN FIGURES LIKE FOR EXAMPLE $120254126

You have been asked to calculate the Return on Investment (ROI) for a project whose development will be accomplished during a single calendar year with the go-live date of Jan 1^st   The project, to develop a new Web-based ordering and fulfillment system, has already been conceptualized, and the team has provided estimates and a partial resource plan. Labor Operating expenses in years 2 through 5 are projected to be $57,000 annually. Miscellaneous expenses in years 2 through 5 are projected to be $6,500 annually. The benefit is projected to be $225,000 the first year of operation, increasing 11% each year. Hardware cost that would be installed for development is $100,000. You’ll need to complete the resource plan, the 5 year planning sheet, and calculate a 5 year ROI. Please finish filling out these tables and answer the associated questions.

Question 1 [2 points]: What is the total labor cost of development?

Question 2 [2 points]: What is the total expense of this project projected to be for the first 5 year period?

Question 3 [2 points]: What is the total benefit projected to be for the first year?

Question 4 [2 points]: What is the total benefit projected to be for the first five years?

Question 5 [2 points]: Given ROI % = ((Benefit – Cost) / Cost)*100, what is the 5 year ROI for this project?

Question 6 [2 points]: If the company could just put the money to cover the project expenses in the bank (instead of doing this project) it could make a investment gain of 7% over this same 5 year period. Should the company invest in this project, or put the money in the bank? Why?

Question 7 [4 points]: Describe in your own words BRIEFLY why APO05 and APO06 are important to project funding selection based on ROI calculation.

You have been asked to calculate the Return on Investment (ROI) for a project whose development will be accomplished during a single calendar year with the go-live date of Jan 1^st   The project, to develop a new Web-based ordering and fulfillment system, has already been conceptualized, and the team has provided estimates and a partial resource plan. Labor Operating expenses in years 2 through 5 are projected to be $57,000 annually. Miscellaneous expenses in years 2 through 5 are projected to be $6,500 annually. The benefit is projected to be $225,000 the first year of operation, increasing 11% each year. Hardware cost that would be installed for development is $100,000. You’ll need to complete the resource plan, the 5 year planning sheet, and calculate a 5 year ROI. Please finish filling out these tables and answer the associated questions.

Question 1 [2 points]: What is the total labor cost of development?

Question 2 [2 points]: What is the total expense of this project projected to be for the first 5 year period?

Question 3 [2 points]: What is the total benefit projected to be for the first year?

Question 4 [2 points]: What is the total benefit projected to be for the first five years?

Question 5 [2 points]: Given ROI % = ((Benefit – Cost) / Cost)*100, what is the 5 year ROI for this project?

Question 6 [2 points]: If the company could just put the money to cover the project expenses in the bank (instead of doing this project) it could make a investment gain of 7% over this same 5 year period. Should the company invest in this project, or put the money in the bank? Why?

Question 7 [4 points]: Describe in your own words BRIEFLY why APO05 and APO06 are important to project funding selection based on ROI calculation.

1) 3 year(s) ago, Trang invested 67,535 dollars. She has earned and will earn compound interest of 4.3 percent per year. In 1 year(s) from today, Isaac can make an investment and earn simple interest of 8.45 percent per year. If Isaac wants to have as much in 9 years from today as Trang will have in 9 years from today, then how much should Isaac invest in 1 year(s) from today?

2) 1 year(s) ago, Theo invested 78,151 dollars. He has earned and will earn 14.96 percent per year in compound interest. If Vivian invests 179,892 dollars in 3 year(s) from today and earns simple interest, then how much simple interest per year must Vivian earn to have the same amount of money in 8 years from today as Theo will have in 8 years from today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

3) What is X if X equals the value of investment A plus the value of investment B? Investment A is expected to pay 23,800 dollars in 7 year(s) from today and has an expected return of 10.87 percent per year. Investment B is expected to pay 25,200 dollars in 6 year(s) from today and has an expected return of 5.17 percent per year.

4) Sasha owns two investments, A and B, that have a combined total value of 47,200 dollars. Investment A is expected to pay 29,100 dollars in 5 year(s) from today and has an expected return of 9.36 percent per year. Investment B is expected to pay X in 4 years from today and has an expected return of 12.88 percent per year. What is X, the cash flow expected from investment B in 4 years from today?

5) Sasha owns two investments, A and B, that have a combined total value of 43,900 dollars. Investment A is expected to pay 28,100 dollars in 3 year(s) from today and has an expected return of 10.89 percent per year. Investment B is expected to pay 30,881 in 2 years from today and has an expected return of R per year. What is R, the expected annual return for investment B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

French Corporation wishes to hire Leslie as a consultant to design a comprehensive staff training program. The project is expected to take one year, and the parties have agreed to a tentative price of $72,500. French Corporation has proposed payment of one-half of the fee now, with the remainder paid in one year when the project is complete. Use Appendix A and Appendix B

. If Leslie expects her marginal tax rate to be 20 percent this year and 30 percent next year, calculate the after-tax net present value of this contract to Leslie, using a 6 percent discount rate.

b. French Corporation expects its marginal tax rate to be 26 percent both years. Calculate the net present value of French’s after-tax cost to enter into this contract using a 6 percent discount rate.

c-1. Given that Leslie expects her tax rate to increase next year, she would prefer to receive more of the income from the project up front. Consider an alternative proposal under which French pays Leslie $51,000 this year, and $20,000 in one year when the contract is complete. Calculate the after-tax benefit of this counterproposal to Leslie and the after-tax cost to French.

c-2. Are both parties better off under this alternative than under the original plan?

Given that Leslie expects her tax rate to increase next year, she would prefer to receive more of the income from the project up front. Consider an alternative proposal under which French pays Leslie $51,000 this year, and $20,000 in one year when the contract is complete. Calculate the after-tax benefit of this counterproposal to Leslie and the after-tax cost to French.

1. Fariq purchases and places in service in 2017 personal property costing? $2,051,000. The property does not qualify for bonus depreciation. What is the maximum Sec. 179 deduction that Fariq can? deduct, ignoring any taxable income? limitation?

A. $479,000

B. ?$510,000

C. $0

D. ?$489,000

2. Chahana acquired and placed in service? $665,000 of equipment on August? 1, 2017 for use in her sole proprietorship. The equipment is 5?year recovery property. No other acquisitions are made during the year. Chahana elects to expense the maximum amount under Sec. 179. Assuming the property does not qualify for bonus?depreciation, Chahana's total deductions for the year? (including Sec. 179 and? depreciation) are

A. ?$643,000.

B. $510,000.

C. $133,000.

D. ?$541,000.

3. Terra? Corporation, a calendar?year taxpayer, purchases and places into service machinery with a 7?year life that costs? $650,000. Neither the mid?quarter convention, nor bonus depreciation apply. Terra elects to depreciate the maximum under Sec. 179.? Terra's taxable income for the year before the Sec. 179 deduction is?$700,000. What is? Terra's total depreciation deduction related to this property? (rounded to the nearest? dollar)?

A. $650,000

B. ?$92,885

C. ?$530,006

D. ?$602,885

4. This year Bauer Corporation incurs the following costs in development of new? products:

No benefits are realized from the research expenditures until next year. If Bauer Corporation elects to expense the research? expenditures, the deduction is

A. ?$10,000 this year and? $175,000 next year.

B. ?$175,000 next year.

C. ?$175,000 this year.

D. ?$215,000 this year.

5. Ilene owns an unincorporated manufacturing business. In? 2017, she purchases and places in service? $2,036,000 of qualifying five?year equipment for use in her business. The property does not qualify for bonus depreciation. Her taxable income from the business before any Sec. 179 deduction is? $400,000. Ilene takes the maximum allowable deduction under section 179. Which of the following statements is true regarding the Sec. 179? election?

A. Ilene can deduct? $510,000 as a Sec. 179 deduction in? 2017, with no carryover to next year.

B. IIene can deduct? $400,000 as a Sec. 179 deduction in? 2017; $104,000 may be carried over to next year.

C. Ilene can deduct? $400,000 as a Sec. 179 deduction in 2017? ,with no carryover to next year.

D. Ilene can deduct? $504,000 as a Sec. 179 deduction in? 2017, with a? $6,000 carryover to next year.