Cheetah Copy purchased a new copy machine. The new machine cost $114,000 including installation. The company estimates the equipment will have a residual value of $28,500. Cheetah Copy also estimates it will use the machine for four years or about 8,000 total hours. Actual use per year was as follows: Year Hours Used 1 2,000 2 2,000 3 2,000 4 3,200 3. Prepare a depreciation schedule for four years using the activity-based method. (Round your "Depreciation Rate" to 3 decimal places and use this amount in all subsequent calculations.) Anything helps!

Your company is considering launching a new product. Designing the new product has already cost $500,000. The company estimates that it will sell 750,000 units per year of $3.2 per unit and variable non-labor costs will be $1 per unit. Production will end after year 3. New equipment costing $1 million will be required. The equipment will be depreciated to zero using the 7-year MACRS schedule. You plan to sell the equipment for book value at the end of year 3. Your current level of working capital is $300,000. The new product will require the working capital to increase to a level of $380,000 immediately, then to $400,000 in year 1, in year 2 the level will be $350,000, and finally in year 3 the level will return to $300,000. Your tax rate is 30%. The discount rate for this project is 11%. Do the capital budgeting analysis for this project and calculate its NPV.

“We really need to get this new material-handling equipment in operation just after the new year begins. I hope we can finance it largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank.” This statement by Beth Davies-Lowry, president of Intercoastal Electronics Company, concluded a meeting she had called with the firm’s top management. Intercoastal is a small, rapidly growing wholesaler of consumer electronic products. The firm’s main product lines are small kitchen appliances and power tools. Marcia Wilcox, Intercoastal’s General Manager of Marketing, has recently completed a sales forecast. She believes the company’s sales during the first quarter of 20x1 will increase by 10 percent each month over the previous month’s sales. Then Wilcox expects sales to remain constant for several months. Intercoastal’s projected balance sheet as of December 31, 20x0, is as follows:

Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 20x1. In the process, the following information has been accumulated:

1. Projected sales for December of 20x0 are $500,000. Credit sales typically are 70 percent of total sales. Intercoastal’s credit experience indicates that 20 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month.

2. Intercoastal’s cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account, and 30 percent of each month’s purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next month’s projected cost of goods sold.

3. Hanson has estimated that Intercoastal’s other monthly expenses will be as follows:

   Sales salaries	$	34,000
   Advertising and promotion		16,000
   Administrative salaries		34,000
   Depreciation		20,000
   Interest on bonds		3,600
   Property taxes		900

   In addition, sales commissions run at the rate of 1 percent of sales.

4. Intercoastal’s president, Davies-Lowry, has indicated that the firm should invest $125,000 in an automated inventory-handling system to control the movement of inventory in the firm’s warehouse just after the new year begins. These equipment purchases will be financed primarily from the firm’s cash and marketable securities. However, Davies-Lowry believes that Intercoastal needs to keep a minimum cash balance of $40,000. If necessary, the remainder of the equipment purchases will be financed using short-term credit from a local bank. The minimum period for such a loan is three months. Hanson believes short-term interest rates will be 10 percent per year at the time of the equipment purchases. If a loan is necessary, Davies-Lowry has decided it should be paid off by the end of the first quarter if possible.

5. Intercoastal’s board of directors has indicated an intention to declare and pay dividends of $75,000 on the last day of each quarter.

6. The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Intercoastal’s bonds is paid semiannually on January 31 and July 31 for the preceding six-month period.

7. Property taxes are paid semiannually on February 28 and August 31 for the preceding six-month period.

Required:

Prepare Intercoastal Electronics Company’s master budget for the first quarter of 20x1 by completing the following schedules and statements.

I need both of these, thanks!

Today, it’s January the 1^st, 2020. A New Year Means New Opportunities to make money investing in bonds.

You are the investment manager of a Bond Fund.

You have the following three bonds in portfolio that needs re-evaluation:

1. Bond 1 ABC
2. Bond 2 DEF
3. Bond 3 XYZ

For more information about the three bonds, please take a look at the bottom of this page.

You expect that market interest rates will remain stable for the next 5 years at 3%, but after year 5, you expect the yield curve to go up = interest rates will go to 4% for year 6-10.  

1. What is the Fair Value of Bond 2? Show calculations

Bond 2 DEF 2019-2024 (Jan 1 issued, paid back Dec 31 2024)

Coupon rate 4%, Annual Coupons

Current Price $1.023

Par Value $1.000

New life form discovered bottom of the ocean. This life form uses 8 new amino acids to build proteins, with also the 20 that are already use. Also, size of their codons appears the same as ours. Which statements could be expected to be true for this life form?

Select one:

a. Protein structure will be less diverse

b. Genetic code will be more redundant so more of the codons code for the same amino acids

c. Must have less nucleotides than we do

d. the genetic code will be less redundant so less codons code for the same amino acid

e. No statements can be expected from this life form

X Corporation owns real and personal property in New York. Under New York law, X is liable for taxes on real property on the first day of any payment date if it owns real property in the state. The dates are 2/1, 5/1, 8/1, 11/1. For 20X7 the amounts due on each date are $300. Under New York law, a taxpayer is liable for personal property taxes on property held on the first day of the year, payable 60% on July 1 following, and 40% on the 1st day of February of the succeeding year. For 20X7, X pays $300 on 11/1/X7 for the last quarter real estate taxes, and $6,000 of personal property taxes on 7/1/X7. The remaining $4,000 of personal property taxes are paid on 2/1/X8. When may these taxes be deducted?

New Jersey Pick 6. In the New Jersey Pick 6 lottery game, a bettor selects six different numbers, each between 1 and 49. Winning the top prize requires that the selected numbers match those that are drawn, but the order does not matter. (a) Do calculations for winning this lottery involve permutations or combinations? why? (b) How many different lottery tickets are possible? (c) Find the probability of winning the jackpot when one ticket is purchased?

20. The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250 per year. The truck has a 5-year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is 6 percent.

1. What is the optimal number of years to operate the truck? Do not round intermediate calculations. Round your answers to the nearest whole number.

__years

2. Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a project? (select one)

I. Yes. Salvage possibilities could only lower NPV and IRR.
II. Salvage possibilities would have no effect on NPV and IRR.
III. No. Salvage possibilities could only raise NPV and IRR.