Suppose that the initial cost of an investment is $310,000, the present value of tax saving from depreciation is $10,510.53, and the present value after tax terminal value is $185,573.74. If the pretax discount rate is 16%, the marginal tax rate is 28%, what is the break even after-tax net returns if the investment is sold in 3 years?

The upfront cost of the project is $30,000. The company has estimated that it can generate cash flows of $10,000 in each of the next two years, and then a final $20,000 cash flow before the brewing system has to be replaced. The company plans to depreciate the system over 3 years with annual straight-line depreciation expenses of $10,000. As part of its analysis the company plans to perform a capital budgeting analysis to assess the viability of the purchase. You have been hired to perform the analysis. You have estimated what you feel is an appropriate discount is 8.00%. As part of your analysis, determine the IRR and NPV for this investment:

Grouper Co. is building a new hockey arena at a cost of $2,510,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $2,020,000 to complete the project. It therefore decides to issue $2,020,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%.

Assume that on July 1, 2022, Grouper Co. redeems half of the bonds at a cost of $1,079,300 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

There are four basic inventory cost flow assumptions. What are they and how are they calculated? What is the impact of each on the balance sheet and on the income statement when:

1. Prices are rising?

2. Prices are falling?

Problem: The possibility of acquiring new machinery at a cost of $ 45,000 is being evaluated, which may be depreciated using the 5-year MACRS method. The machine must save $ 23,000 annually during the 5 years of its useful life and maintenance costs are estimated at $ 7,300 annually.

a) If the company is taxed at a rate of 42%, determine if the investment meets the requirement of providing a minimum return of 12% after taxes (After-Tax analysis).Assume that at the end of its useful life, the machine can be sold for $ 10,000























b) If the average inflation rate for the period is estimated at 3.2%, Calculate the real return on the investment after considering inflation

What are the competitors of Low cost Airlines? What is its market structure. Is it an oligopoly or monopolistic competition type and if yes how? Can this be explained with a demand supply curve.

A special bumper was installed on selected vehicles in a large fleet. The dollar cost of body repairs was recorded for all vehicles that were involved in accidents over a 1-year period. Those with the special bumper are the test group and the other vehicles are the control group, shown below. Each "repair incident" is defined as an invoice (which might include more than one separate type of damage).

Source: Unpublished study by Thomas W. Lauer and Floyd G. Willoughby.

(a) Construct a 99 percent confidence interval for the true difference of the means assuming equal variances. (Round your intermediate t_crit value to 3 decimal places. Round your final answers to 3 decimal places. Negative values should be indicated by a minus sign.)

The 99% confidence interval is from  to  

(b) Repeat part (a), using the assumption of unequal variances with Welch's formula for d.f. (Round your intermediate t_critvalue to 3 decimal places. Round your final answers to 3 decimal places. Negative values should be indicated by a minus sign.)

The 99% confidence interval is from  to  

(c) Did the assumption about variances change the conclusion?
  

• Yes

• No

(d) Construct separate 99% confidence intervals for each mean. (Round your intermediate t_crit value to 3 decimal places. Round your final answers to 2 decimal places.)

Personal Investment Analysis Find of the cost of a bachelor's degree at the university of your choice assume additional costs of $16,000 for an additional fifth year of education to get Master's degree. Assume that all tuition is paid at the beginning of the year. A student considering this investment must evaluate the present value of cash flows from possessing a graduate degree versus holding only the undergraduate degree. Assume that the average student with an undergraduate degree is expected to earn an annual salary of $55,000 per year (assumed to be paid at the end of the year) for 10 years. Assume that the average student with a graduate Masters degree is expected to earn an annual salary of $76,000 per year (assumed to be paid at the end of the year) for nine years after graduation. Assume a minimum rate of return of 10%. Determine the net present value of cash flows from an undergraduate degree. Use the present value table provided in this chapter 26. Determine the net present value of cash flows from a Masters degree, assuming that no salary is earned during the graduate year of schooling. What is the net advantage or disadvantage of pursuing a graduate degree under these assumption? Bachelor's degree costing 43,000 Master's degree costing 59,000

In this module we learned that, despite increases in the cost, the value of higher education has increased over time. How can college be made more affordable? Revenues earned by colleges and universities come from three main sources:

1. Tuition and fees paid by students, which have increased faster than the cost of living.
2. Support from governments at the federal, state and local levels. This support is paid for through tax revenues. Even private colleges and universities obtain funding from the government, but government support has declined at all levels in recent years.
3. Alumni contributions.

What has caused the cost of college to increase so much? (Not every college has a fancy gym or an Olympic sized pool with a lazy river.) What features of your college education would you be willing to do without to make college more affordable?

What do you propose should be done to make higher education more affordable? What reasons can you provide to support your argument?