The cost of equipment purchased by Charleston, Inc., on June 1, 2014, is $201,140. It is estimated that the machine will have a $11,300 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 94,920, and its total production is estimated at 1,186,500 units. During 2014, the machine was operated 13,560 hours and produced 124,300 units. During 2015, the machine was operated 12,430 hours and produced 108,480 units. Compute depreciation expense on the machine for the year ending December 31, 2014, and the year ending December 31, 2015, using the following methods. (Round answers to 0 decimal places, e.g. 45,892.) 2014 2015 (a) Straight-line $ $ (b) Units-of-output $ $ (c) Working hours $ $ (d) Sum-of-the-years'-digits $ $ (e) Double-declining-balance (twice the straight-line rate) $

Suppose the expected sales volume of a company is $30,000,000, if the salary and administration cost of the company sales force equals to $700,000 and they receive a commission of 2.5%, while the commission for the independent sales force equals 5%, should the company hire independent sales force or use internal sales force?

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $514,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $102,000. The sausage system will save the firm $190,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $48,000. PLEASE SHOW WORK WITHOUT EXCEL
  
What is the aftertax salvage value of the equipment? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Aftertax salvage value            $

What is the annual operating cash flow? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
OCF            $

If the tax rate is 40 percent and the discount rate is 9 percent, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV            $

The mean cost of a five pound bag of shrimp is 42 dollars with a variance of 49. If a sample of 54 bags of shrimp is randomly selected, what is the probability that the sample mean would differ from the true mean by more than 1.4 dollars? Round your answer to four decimal places.

The table below shows the average cost of a firm depending on the level of production.

Assuming that the company is operating in the long run what are fixed costs?

4.5 If the total capital cost of the Section 4.6 plant design is $600,000,000 and the annual administrative and maintenance costs are one cent per kW-hr, what is the minimum cost of electricity per kW-hr, assuming an annual interest rate of 9% and an expected plant lifetime of thirty-five years?

4.24 Upon hiring on with Hot Stuff Engineering Company after graduation, you purchase a $30,000 automobile to establish an image as a prosperous engineer. You pay no money down, but 1% interest per month, compounded monthly, for four years. What are your monthly payments? What will your payments be if you are paying simple interest?

Tamarisk Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

2. Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.

3. Assume that on July 1, 2019, Tamarisk Co. redeems half of the bonds at a cost of $1,173,900 plus accrued interest. Prepare the journal entry to record this redemption.

The cost of unleaded gasoline in the Bay Area once followed an unknown distribution with a mean of $3.32 and a standard deviation of $0.12. If 37 gas stations are randomly sampled, what is the probability that that the average price of the 37 gas stations is between $3.32 and $3.35?

• 
  
• What distribution will you use to calculate this probability?
  N(3.32, __________)
• 
  
• List the zz-scores needed to calculate the result. If there is more than one zz-score, separate the values with a comma.
• ______________________
• 
  
• There is a  chance that the average price of the 37 gas stations is between $3.32 and $3.35.
• _______________________