Questions
Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1,...

Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount.

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.

  1. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $1,850,000 and will last 10 years.
  2. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $330,000. She estimates that the return from owning her own shop will be $55,000 per year. She estimates that the shop will have a useful life of 6 years.
  3. Barker Company calculated the NPV of a project and found it to be $63,900. The project's life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000.

Required:

1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV.
$

Should the company buy the new welding system?
Yes

2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the NPV for Evee Cardenas' investment. Round to the nearest dollar. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a negative NPV.
$

Should she invest?
No

What if the estimated return was $135,000 per year? Calculate the new NPV for Evee Cardenas' investment. Would this affect the decision? What does this tell you about your analysis? Round to the nearest dollar.
$

The shop should now  be purchased. This reveals that the decision to accept or reject in this case is affected by differences in estimated cash flow

3. What was the required investment for Barker Company's project? Round to the nearest dollar. If required, round all present value calculations to the nearest dollar.
$

In: Accounting

Problem 1: You save $5,000 dollars in year 1. $5,150 dollars in year 2. If the...

Problem 1: You save $5,000 dollars in year 1. $5,150 dollars in year 2. If the amounts increase 3% a year through year 20, how much money will you have at the end of year 20 at 10% interest?

Problem 2: A smart engineer wants to save now and play later. She wants to retire in 20 years with $1.5 million dollars of play money. At 10% per year interest, to reach the $1.5 million goal, starting 1 year from now, she must invest how much money annually?

Problem 3: You receive a gift of $25,000 dollars and have come up with three options on how to spend the money. 1) Buy a new car even though you do not need it. 2) Invest the money in a company stock option that has an expected value increase at 20% a year. However, this option is fairly risky. 3) You can put the money a saving account at 6% year. If you decide to buy the new car, what is the opportunity cost with the choice? If you invest the money in the stock, what is the opportunity cost? What is an opportunity cost?

Problem 4: You have been invited to go Oktoberfest. You buy a passport for $100 dollars and it is valid for 10 years. The next day, the trip gets cancelled. Is your passport a suck cost or an opportunity cost? What is a suck cost?

Problem 5: A new engineer graduate plans to buy a business for $100,000 dollars at 10% interest per year. The loan payment each year to pay off the loan in 7 years is what amount?
  

In: Accounting

Two forces, F⃗ 1 and F⃗ 2, act at a point. F⃗ 1 has a magnitude...

Two forces, F1 and F2, act at a point. F1 has a magnitude of 8.20 N and is directed at an angle of 64.0 ∘ above the negative x axis in the second quadrant. F⃗ 2has a magnitude of 5.20 N and is directed at an angle of 53.8 ∘ below the negative x axis in the third quadrant.

Part A

What is the x component of the resultant force?

Part B

What is the y component of the resultant force?

Express your answer in newtons.

Part C

What is the magnitude of the resultant force?

In: Physics

Chapter 16 Problem 1 1. A supplier is offering your firm a cash discount of 2...

Chapter 16 Problem 1

1. A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten days; otherwise, the bill is due at the end of 60 days. Would you recommend borrowing from a bank at an 18 percent annual interest rate to take advantage of the cash discount offer? Explain your answer.

In: Finance

1. f(x)= 3x / x^2 + 1 - Vertical Asymtote As x → −, f(x) →...

1.

f(x)= 3x / x^2 + 1

- Vertical Asymtote

As x, f(x) →

As x →  +, f(x) →

- Any hole in graph

- Horizontal asymtote

As x, f(x) →

As x →  +, f(x) →

In: Math

Read the case study and addressing the following: Part 1, Sections 1-2: Provide calculations and a...

Read the case study and addressing the following:

Part 1, Sections 1-2: Provide calculations and a solution for total variable costs, break even in sales volume (number of members), break even in sales (in dollars), and margin of safety.

Case Study:

n addition to regular gyms, nontraditional workout concepts and centers such as Kosama are increasing in popularity. Kosama is a franchise opportunity that offers members the opportunity to improve their health and fitness level. To learn more about the company visit kosama.com.

Part 1, Section 1: Assume the following revenue and cost break-down.

Revenue:  

-Monthly membership fee = $30.

Costs:

-General fixed operating expenses = $4,100 per month.

-Equipment Lease = $395 per month.

-Mixed costs are equal to $275 per/month (fixed) plus $1.10 per membership sale (variable).

-Total variable costs are not known.  

-Estimated number of members required to break even is 330 members per month.  

Using the information provided estimate the amount of variable costs. When performing your analysis, assume that the only fixed costs are the estimated monthly operating expenses, equipment lease and the fixed part of mixed costs. Show your work and all calculations.

Part 1, Section 2: Using the information from section 1. What would monthly sales in members and dollars have to be to achieve a target net income of $13,750 for the month? What is the margin of safety in dollars? Show your work and all calculations.

In: Accounting

The Fibonacci series 0, 1, 1, 2, 3, 5, 8, 13, 21 … begins with the...

  1. The Fibonacci series 0, 1, 1, 2, 3, 5, 8, 13, 21 … begins with the terms 0 and 1 and has the property that each succeeding term is the sum of the two preceding terms. Write a non-recursive function Fibonacci (n) that calculates the nth Fibonacci number. Write a program to display a table of terms and the Fibonacci number in two columns for the first 15 terms, using the function you created.

In: Computer Science

Complete the journal entries as necessary for both Part 1 and Part 2. Part 1. Transaction...

Complete the journal entries as necessary for both Part 1 and Part 2.

Part 1.

Transaction 1. On January 1st of 2020, Casey bought 10% of Apple Company’s 100,000 shares of outstanding common stock at $20 a share.

2. On December 31, 2020, Apple reported $40,000 of net income and paid $20,000 of dividends.

3. On December 31, 2020, the market price of the stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account.

Part 2. Complete the journal entries as required:

Transaction 4. On January 1st of 2020, Casey bought 30% of Apple Company’s 100,000 shares of outstanding common stock at $20 a share and has significant influence.

5. On December 31, 2020, Apple reported $40,000 of net income and paid $20,000 of dividends.

6. On December 31, 2020, the market price of the stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account before this transaction.

In: Accounting

1.) Generate an array of 10 random numbers between 1 - 100 2.) Copy the array...

1.) Generate an array of 10 random numbers between 1 - 100 2.) Copy the array to a temp array 3.) Call each of the methods to sort (bubble, selection, insertion, quick, merge), passing it the array 4.) In-between the calls, you are going to refresh the array to the original numbers. 5.) Inside of each sorting method, you are going to obtain the nanoseconds time, before and after the method Subtract the before time from the after time to obtain total time in nanoseconds 6.) Display the amount of time that the sort took 7.) Tell me which sort was fastest.

help please this is java please use simple code

In: Computer Science

1. Consider the process {Xt} in which Xt = Zt + 0.5Zt-1 - 2Zt-2. Investigate the...

1. Consider the process {Xt} in which Xt = Zt + 0.5Zt-1 - 2Zt-2. Investigate the
stationarity of the process under the following conditions. Calculate the ACF for the
stationary models.
(a) Zt ~ WN(0,(sigma)2) ; (sigma)2 < infinity
(b) {Zt } is a sequence of i.i.d random variables with the following distribution:
fzt(z) = 2/z3 ; z > 1

In: Statistics and Probability