The municipality of a major city in Quebec is planning to build a new bridge to decrease the traffic load on the existing bridges connecting both sides of the city across the river. Construction is to start in 2020 and is expected to take four years at a cost of $25 million per year. After construction is completed, the cost of operation and maintenance is expected to be $2.5 million for the first year and to increase by 2.8% per year thereafter. The scrap/salvage value of the bridge at the end of year 2053 is estimated to be $5 million. Consider the present to be the end of 2018/beginning of 2019 and the interest rate to be 8%.

a)   Draw a cash flow diagram for this project (from present till end of year 2053).
b)   Find the Present Worth of this project.
c)   Find the Future Worth of this project.

Metlock Inc. manufactures cycling equipment. Recently, the company’s vice-president of operations has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2,380,000 of 13% term corporate bonds on March 1, 2020, due on March 1, 2034, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 12%.

As Metlock's controller, determine the selling price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)

1) The net income per books of Bramble Industries Limited was determined without any knowledge of the following errors. The 2019 year was Bramble’s first year in business. No dividends have been declared or paid.

a) Prepare a work sheet to show the adjusted net income figure for each of the six years after taking the inventory corrections into account.

b) Prepare a schedule that shows both the original retained earnings balance reported at the end of each year and the corrected amount.

For the most recent financial year 2018, WOW reported operating lease expenses of $950 million, operating income (EBIT) of $2,000 million, and interest-bearing debt of $4,000 million. The future operating lease commitments of the company are as follows: $1,200 million (in 2019); $900 million (in 2020); $800 million (in 2021); $700 million (in 2022); $600 million (in 2023), and a lump sum of commitments beyond that point in time of $4,000 million. The pre-tax cost of debt is 7.4%, the cost of capital is 13%, the firm’s beta is 1.38, and the effective tax rate is 30%.

1. What is the total present value in 2018 of all operating lease commitments?
2. What is the total debt of the company after reclassifying operating leases as debt?

Harry Rubenstein operates a private taxi business that provides personal transport services to passengers in the Mornington Peninsula region of Victoria. The following transactions relate to the purchase of a new motor vehicle by the business for use as a private taxi. The business is registered for GST and the GST rate is 10%.

REQUIRED:

(a) Prepare the journal entry to record the purchase of the motor vehicle on 1 July 2015.

(b) Prepare the journal entry to record the service expense on 15 March 2018.

(c) Prepare the journal entries to record the overhaul of the motor vehicle on 1 July 2018.

(d) Prepare the journal entry to record the sale of the motor vehicle on 1 July 2020.

Harry Rubenstein operates a private taxi business that provides personal transport services to passengers in the Mornington Peninsula region of Victoria. The following transactions relate to the purchase of a new motor vehicle by the business for use as a private taxi. The business is registered for GST and the GST rate is 10%.

REQUIRED:

(a) Prepare the journal entry to record the purchase of the motor vehicle on 1 July 2015.

(b) Prepare the journal entry to record the service expense on 15 March 2018.

(c) Prepare the journal entries to record the overhaul of the motor vehicle on 1 July 2018.

(d) Prepare the journal entry to record the sale of the motor vehicle on 1 July 2020.

Please note that problem solving often requires you to consider additional requirements that are not specifically listed.

You are to write a Java program to represent cars.

• The program has a Car class (Car.java) with constructors, accessors, mutators, and print methods.
• This class should not have static data members or static methods. The main method will be in another class.
• The data members include the car model year, make, model, retail price, and current value; for example, a 2020 Ford Mustang, retail of 28999, and current value 27500.
• There are two constructors. One constructor should have arguments used to set the car make, model, model year, and retail price, but set the current value will to zero without using an argument. Another constructor should have arguments used to set all the data members. Name the arguments in both constructors the same as the data members.
• There are accessors and mutators for each data member. The accessors will return the data member value. The mutators will sent the data member to a value passed in as an argument.
• The print method will output the data members to the console. We will keep it simple by just putting the data member values on the same line with spaces between. For example:

2020 Ford Mustang 28999 27500

The program has a Driver class (Driver.java) with the main method. The main method:

1. Instantiates an ArrayList of Cars and instantiates three Car objects (car1, car2, car3).
2. Adds the Car objects to the ArrayList of Cars. After adding the cars to the ArrayList, all operations on the objects are done by accessing the methods through the ArrayList. In other words, do not use car1, car2, or car3 variables after the cars are added to the ArrayList.
3. Change the current value of the third car to 10% less than its current value.
4. Set the first car’s retail price to $30,000.
5. Using a loop, printout the three cars using the ArrayList.

1. Exercise A3-20 (Algorithmic)
   Future Values of an Annuity

   Use Future Value Tables or your calculator to complete the requirements below.

   On December 31, 2020, you sign a contract to make annual deposits of $5,200 in an investment account that earns 10%. The first deposit is made on December 31, 2020.

   Required:

   1. Calculate what the balance in this investment account will be just after the seventh deposit has been made if interest is compounded annually. Round your answer to the nearest cent, if rounding is required.
   $

   2. Determine how much interest will have been earned on this investment account just after the seventh deposit has been made if interest is compounded annually. Round your answer to the nearest cent, if rounding is required.
   $

2. Exercise A3-11 (Algorithmic)
   Practice with Tables

   Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirements below.

   Required:

   Round your answers to the nearest cent, if rounding is required.

   a. Determine the future value of a single cash flow of $5,480 that earns 7% interest compounded annually for 10 years.
   $

   b. Determine the future value of an annual annuity of 10 cash flows of $500 each that earns 7% compounded annually.
   $

   c. Determine the present value of $5,480 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year.
   $

   d. Determine the present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs one year from now.
   $

   Feedback

3. 12)b. Determine the present value of an annuity of seven cash flows of $1,340 each (one at the end of each of the next 7 years) for which the interest (discount) rate is 8% per year.

Monty Corp. had the following long-term receivable account balances at December 31, 2019.

Transactions during 2020 and other information relating to Monty' long-term receivables were as follows:

Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Partially correct answer iconYour answer is partially correct.

Describe the relevant cash flows in terms of amount and timing.

Determine the amount of interest income that should be reported in 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Determine the portion of the note and any interest that should be reported in current assets at December 31, 2020. (Round answers to 0 decimal places, e.g. 9,871. Do not leave any answer field blank. Enter 0 for amounts.)

Prepare the long-term receivables section of Monty statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Monty's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)