4. If the cost of capital is 8%, will a company that that would pay $100,000 investment in equipment in year 0, and then receives $16,000 per year each of the next eight years (but no salvage value) make the investment?
multiple choice 4
No
Yes
5. What would the net cash flows (not discounted) for a company that makes a $100,000 investment in year 0, and then receives $16,000 per year each of the next eight years?
multiple choice 5
$100,000
$28,000
$0
$128,000
In: Accounting
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation.
| Production Volume (units) | Total Cost ($) |
400 $4300
450 $5300
550 $5700
600 $6200
700 $6700
750 $7300
|
In: Statistics and Probability
In: Operations Management
Write a program in PYTHON that determines the cost of painting the walls of a windowless room. There is one door and it will be painted the same color as the walls. The problem requires a main function and two custom functions that are imported from a custom module that you create. In main, the program should prompt the user for five inputs shown in blue in the Sample Output below:
the length, width, and height of the room in
feet.
the cost of one quart of the chosen paint.
the square feet that can be covered by one quart of
paint.
The three dimensions of the room should then be used as arguments
for a function that calculates and returns the area of the
walls in square feet. This area and the remaining two inputs should
be used as arguments for a second, void function that
determines and prints the cost of the painting job. There
will likely be paint left over. There is a method in the math
module that you can use to "round up" the number of quarts
needed.
Sample Output
Enter the length of the room in feet 20
Enter the width of the room in feet 16
Enter the height of the walls in feet 9
Enter the price of one pail of paint 24.99
Enter the sq ft covered by one pail 100
This job requires 7 pails of paint
The cost of paint is $174.93
In: Computer Science
A firm with a 13 percent cost of capital is considering a
project for this year’s capital budget. The project’s expected
after-tax cash flows are as follows:
| Year: |
0 |
1 |
2 |
3 |
4 |
| Cash flow: |
-$8,000 |
$3,100 |
$3,000 |
$2,700 |
$3,900 |
Calculate the project’s discounted payback
period.
| a. |
3.50 years |
|
| b. |
4.00 years |
|
| c. |
3.43 years |
|
| d. |
3.57 years |
|
| e. |
3.00 years |
In: Finance
“The rate of interest represents the compensation to the
lender for the administrative cost incurred, such as rent,
salaries, air conditioner, and other costs. Also a compensation for
the risk of not recovering the cash flow that was lent, and for an
additional profit.”
Why do you think in the Puerto Rico Bank and Financial sector, the
interest rate that is paid to the clients in the savings accounts
is so low? Few years ago the interest rates were much higher.
In: Finance
In 1990, Flounder Company completed the construction of a
building at a cost of $2,300,000 and first occupied it in January
1991. It was estimated that the building will have a useful life of
40 years and a salvage value of $69,000 at the end of that
time.
Early in 2001, an addition to the building was constructed at a
cost of $575,000. At that time, it was estimated that the remaining
life of the building would be, as originally estimated, an
additional 30 years, and that the addition would have a life of 30
years and a salvage value of $23,000.
In 2019, it is determined that the probable life of the building
and addition will extend to the end of 2050, or 20 years beyond the
original estimate.
a) Using the straight-line method, compute the annual depreciation that would have been charged from 1991 through 2000.
| Annual depreciation from 1991 through 2000 |
b) Compute the annual depreciation that would have been charged from 2001 through 2018.
| Annual depreciation from 2001 through 2018 |
c) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2019.
d) Compute the annual depreciation to be charged, beginning with 2019. (Round answer to 0 decimal places, e.g. 45,892.)
| Annual depreciation expense—building |
In: Accounting
C Code
The cost to become a member of a fitness center is as follows:
(a) the senior citizens discount is 30%
(b) if the membership is bought and paid for 12 or more months, the discount is 15%
(c) if more than five personal training sessions are bought and paid for, the discount on each session is 20% Write a that determines the cost of a new membership.
Your program must contain: a function that displays the general information about the fitness center and its charges a function that prompts for the price per month of a membership and the cost of each personal trainer session (use pass by pointer parameters) a function that prompts for all of the necessary information to determine the cost of a membership (use pass by pointer parameters) a function to determine the membership cost (use pass by value parameters)
For Example: This program determines the cost of a new membership.
If you are a senior citizen, then the discount is 30% of the regular membership price.
If you buy membership for twelve months and pay today, the discount is 15%
If you buy and pay for 6 or more personal training session today, the discount on each session is 20%
Enter the cost of a regular membership per month: 100
Enter the cost of one personal training session: 11
Are you a senior citizen (Y|y/N|n): n
Enter the number of personal training sessions bought: 3
Enter the number of month you are paying for: 13
The membership cost = $1138.00
In: Computer Science
A project requires to purchase an equipment with a cost of $1.55 million. The equipment will be depreciated straight-line to a zero book value over the 9-year life of the project. At the end of the project it will be sold for a market value of $240,000. The project will not change sales but will reduce operating costs by $399,000 per year. The project also requires an initial investment of $52,000 in net working capital, which will be recouped when the project ends. The tax rate is 34 percent. (1) What is the cash flow of the project in year 0 (or at the beginning of the project)? (2) What is the cash flow of the project in each year from year1 to year 8? (3) What is the cash flow of the project in year 9 (or the ending year)? [hint: there are 3 cash flow items, for example after-tax salvage value] (4) What is the project's NPV if the required return is 11.5 percent? [hint: the answer for NPV value is one of the following choices:] A. $215,433 B. $276,945 C. $268,011 D. $225,225 E. $257,703
In: Economics
The ABC Corp. is evaluating a proposal for a new project. It will cost RM55,000 to get the undertaking started. The project will then generate cash inflows of RM21,000 in its first year and RM17,000 per year in the next five years after which it will end. ABC uses an interest rate of 9% compounded annually for such evaluations. Calculate the “Net Present Value” (NPV) of the project by treating the initial cost as a cash outflow (a negative) in the present, and adding the present value of the subsequent cash inflows as positives
In: Finance