Triad Corporation has established a joint venture with Tobacco Road Construction, Inc., to build a toll road in North Carolina. The initial investment in paving equipment is RM125 million. The equipment will be fully depreciated using the straight-line method over its economic life of 5 years. Earnings before interest, taxes, and depreciation collected from the toll road are projected to be RM18.4 million per annum for 20 years starting from the end of the first year. The corporate tax rate is 21 percent. The required rate of return for the project under all-equity financing is 13 percent. The pretax cost of debt for the joint partnership is 8.5 percent. To encourage investment in the country’s infrastructure, the U.S. government will subsidize the project with a RM40 million, 15-year loan at an interest rate of 5 percent per year. All principal will be repaid in one balloon payment at the end of Year 15. Calculate the adjusted present value of this project?

During 2018, Barden Building Company constructed various assets at a total cost of $10,500,000. The weighted average accumulated expenditures (WAAE) on assets qualifying for capitalization of interest during 2018 were $7,000,000. The company had the following debt outstanding at December 31, 2018: • 10%, 5-year note to finance construction of various assets, dated January 1, 2017, with interest payable annually on January 1 $4,500,000 • 12%, twelve-year bonds issued at par on December 31, 2009, with interest payable annually on December 31 6,000,000 • 9%, 4-year note payable, dated January 1, 2016, with interest payable annually on January 1 3,500,000 Instructions Compute the amounts of each of the following (show computations). 1. Actual interest 2. Average Interest Rate 3. Avoidable interest 4. Interest to be capitalized during 2018 5. Interest expense reported 2018

Triad Corporation has established a joint venture with Tobacco Road Construction, Inc., to build a toll road in North Carolina. The initial investment in paving equipment is $153 million. The equipment will be fully depreciated using the straight-line method over its economic life of five years. Earnings before interest, taxes, and depreciation collected from the toll road are projected to be $21.2 million per annum for 20 years starting from the end of the first year. The corporate tax rate is 22 percent. The required rate of return for the project under all-equity financing is 13 percent. The pretax cost of debt for the joint partnership is 8.5 percent. To encourage investment in the country’s infrastructure, the U.S. government will subsidize the project with a $75 million, 15-year loan at an interest rate of 5 percent per year. All principal will be repaid in one balloon payment at the end of Year 15. What is the adjusted present value of this project?

Triad Corporation has established a joint venture with Tobacco Road Construction, Inc., to build a toll road in North Carolina. The initial investment in paving equipment is $161 million. The equipment will be fully depreciated using the straight-line method over its economic life of five years. Earnings before interest, taxes, and depreciation collected from the toll road are projected to be $24.7 million per annum for 20 years starting from the end of the first year. The corporate tax rate is 24 percent. The required rate of return for the project under all-equity financing is 15 percent. The pretax cost of debt for the joint partnership is 8.7 percent. To encourage investment in the country’s infrastructure, the U.S. government will subsidize the project with a $85 million, 15-year loan at an interest rate of 5.2 percent per year. All principal will be repaid in one balloon payment at the end of Year 15.

What is the adjusted present value of this project?

 Consumer & Office (15% of sales)[4]: Stationary; Office; Home Care; Protection; Construction; Home Improvement; Visual Systems

Business Strategy and Analysis
As an individual in your group, you analyze the business strategy and analysis (Ch 3-7) of the individual business (i.e. division/ subsidiary/ business unit).
Individual component of your project should revolve around:
Conduct an external analysis (e.g. PESTEL, 5 Forces model, Strategic Group Mapping) (Ch 3) and internal analysis (e.g. VRIO, Isolating mechanisms, Dynamic capability) (Ch 4)
How does the individual business perform? (Ch 5)
What business strategies (e.g. Differentiation/ Cost-Leadership/ Blue Ocean Strategy) does it pursue? (Ch 6)
What stage of the industry lifecycle/ Crossing the Chasm is the industry in? What types of innovations (4 Types/ Open vs Closed) does the individual business have? (Ch 7)

A​ state-sponsored Forest Management Bureau is evaluating alternative routes for a new road into a formerly inaccessible region. Three mutually exclusive plans for routing the road provide different​ benefits, as indicated in table below. The roads are assumed to have an economic life of 50 years, and MARR is 6​% per year. Which route should be selected according to the​ B-C ratio​ method? Assume that a roadway must be constructed.

Click the icon to view the interest and annuity table for discrete compounding when the MARR is 6​% per year.

Perform the incremental​ B-C Analysis.​ Fill-in the table below. ​(Round to four decimal​ places.)

Coronado Industries Inc. constructed a building and acquired five assets during the current year.

Construction of Building: A building was constructed on land purchased last year at a cost of $216,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows.

Coronado obtained a $630,000, 8% construction loan on March 1. Coronado repaid the loan on October 1. Coronado had $360,000 of other outstanding debt during the year at a borrowing rate of 9%.

Asset 1: Coronado acquired office furniture by making a $6,750 down payment and issuing a $9,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $4,500 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $14,580.

Asset 2: Coronado acquired manufacturing equipment by trading in used manufacturing equipment. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows.

Asset 3: Four computers were acquired by issuing 500 shares of $1 par value common stock. The stock had a market price of $12 per share.

Assets 4 and 5: Coronado purchased these assets together for a lump sum of $207,000 cash. The following information was gathered.

Record the acquisition of each of these assets. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Fairfield Homes is developing two parcels near Pigeon Forge, Tennessee. In order to test different advertising approaches, it uses different media to reach potential buyers. The mean annual family income for 19 people making inquiries at the first development is $160,000, with a standard deviation of $37,000. A corresponding sample of 27 people at the second development had a mean of $181,000, with a standard deviation of $32,000. Assume the population standard deviations are the same. At the 0.01 significance level, can Fairfield conclude that the population means are different?

1. State the decision rule for 0.01 significance level: H₀: μ₁ = μ₂; H₁:μ₁ ≠ μ₂. (Negative values should be indicated by a minus sign.Round your answers to 2 decimal places.)

2. Compute the value of the test statistic. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)

3. At the 0.01 significance level, can Fairfield conclude that the population means are different?  

  Reject/Do no reject H0. Fairfield can/cannot conclude that the population means are different