A firm can produce orange juice in the US and ship it to Japan at a cost of $1.75/unit. They want to sell it with a 50% markup (50% higher than their cost), and the yen/US$ exchange rate is 111.11.

1) At what price would they sell it in Japan (in yen)?

2)What is their US$ profit?

Now suppose the $ appreciates from ¥/US$ 111.11 to ¥120/US$ prior to payment.

3) What is the new US$ revenue and profit?

4) How does it compare with what the company was expecting?

5) What might the company have done to protect itself?

Charlotte Computer Services is considering purchasing equipment at $100 000. It is anticipated the equipment will have a useful life of five years. It will be depreciated on a straight-line basis. Operating revenue is expected to be $74 000 per annum and operating expenses $25 000 per annum. The equipment is subject to an investment allowance of 10 per cent and the tax rate is 30 per cent. The after-tax hurdle rate is 12 per cent.
a) The reduction in tax due to the investment allowance is?
b) What is the tax effect of the depreciation?
c) What is the Net Present Value of the investment?

A car manufacturer is offering the following incentive with any purchase of its new 2019 mid- size sedans at one of its affiliated dealerships. The vehicle sells for $24,000. Free maintenance services for 2 years at the dealership

Assume there are no other promotions running during this time. The car manufacturer estimates that the normal selling price for the maintenance services it will provide to customers, on average, over the two year period under this promotion is $1,000. Assuming the customer pays $24,000 for the vehicle, how much revenue is recognized on the sale date? You can ignore the time value of money.

If the government follows an income tax system in which personal income up to and including
K2500 is not taxed, income of K2501 to K5000 is taxed at 10%, and income over K5000 is
taxed at 25%.
a) What is the marginal tax rate for a family earning income equal to K6000?
b) What is the average tax rate for a family earning income equal to K6000?
c) How much revenue will the government raise from an individual earning K6000?

d) What type of tax system prevails in this economy? Explain.
e) Distinguish between tax elasticity and tax buoyancy.

I

Prepare an Income Statement, Statement of Owner’s Equity and Balance Sheet

•Burnout Batteries

•Initial Cost = $36 each

•3-year life

•$100 per year to keep charged

•Expected salvage = $5

•Straight-line depreciation

•Long-lasting Batteries

•Initial Cost = $60 each

•5-year life

•$88 per year to keep charged

•Expected salvage = $5

•Straight-line depreciation

The machine chosen will be replaced indefinitely and neither machine will have a differential impact on revenue. No change in NWC is required.

The required return is 15%, and the tax rate is 34%.

Which battery should be chosen?

I have identified Walmart's Neighborhood Market, a subsegment of Walmart, as an oligopolistic market structure.

I need to answer the following:

Assess how this type of market structure impacts Neighborhood Market's financial performance as measured by performance variables over the past three years. Support your response with data and graphs illustrating two performance variables of your choosing (e.g., sales, net income, stock price) over time.

I want to focus on Revenue and Stocks and Earnings Per Share as the two variables

Cited resources and scholorarly studies are appreciated.

Dre Inc. began operations on 01/01/2020 and bought some equipment for $30,000. Dre uses a four-year straight-line depreciation for accounting purposes. For tax, the deduction is 40% of cost in 2020, 30% in 2021, and 30% in 2022. Pretax accounting income for 2020 was $160,000, including interest revenue of $25,000 from municipal bonds. The tax rate is 30% for all years.

Required:
Prepare a journal entry to record income taxes for the year 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

What is the NPV of this project? (in 000s)

Bogle is considering a two-year project to manufacture microchips. Bogle purchases equipment for $750K. This two-year project will require additional inventory of $125K and accounts payable of $150K, which reverse at the end of the project. Bogle’s tax rate is 50%, and its cost of capital is 12%.

Bogle estimates incremental revenue of $600K in years 1 and 2, and operating expenses equal to 15% of revenues. The machine is depreciated straight-line (i.e., 50% in year 1 and 50% in year 2).

What is the NPV of this project? (in 000s)