Brown Inc. acquired a delivery van on October 1, 2017 at a cost of $45,000. The useful life of the van was 12 years with a residual value of $3,000. Assume that the company used straight-line method with fractional years rounded to the nearest whole month. The delivery van was traded-in with a new one as of end of the year of 2018 (December 31, 2018). The list price of the new delivery van was $56,000. The Brown Inc. accepted a trade-in allowance of $40,850 and paid the remaining amount in cash to get the new van. In recording the trade-in, which of the following is correct?(3 Points)

Accumulated depreciation of the old van is debited by $3,375

Accumulated depreciation of the old van is debited by $4,375

Accumulated depreciation of the old van is credited by $4,375

Accumulated depreciation of the old van is credited by $3,375

Planet Enterprises is purchasing a $10.4 million machine. It will cost $54 000 to transport and install the machine. The machine has a depreciable life of five years using​ straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.2 million per year along with incremental costs of $1.1 million per year.​ Planet's marginal tax rate is 30%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new​ machine?

The free cash flow for year 0 will be $ ............. ​(Round to the nearest​ dollar.)

The free cash flow for years 1–5 will be $ ............. (Round to the nearest​ dollar.)

QUESTION 1

An equipment was acquired at a cost of RM300,000. Its estimated useful life is five years. It is expected that the salvage value for the equipment is RM50,000. Using the sum of year digit method, calculate and prepare the depreciation expenses and schedule for the five years.

QUESTION 1

An equipment was acquired at a cost of RM300,000. Its estimated useful life is five years. It is expected that the salvage value for the equipment is RM50,000. Using the sum of year digit method, calculate and prepare the depreciation expenses and schedule for the five years.

A project has an initial cost of $14,500 and produces cash inflows of $4,600, $6,100, and $8,500 over the next three years, respectively.

What is the discounted payback period if the required rate of return is 15 percent?

a. 2.36 years

b. 2.45 years

c. 2.55 years

d 2.62 years

e. never

Suppose a government department would like to investigate the relationship between the cost of heating a home during the month of February in the Northeast and the​home's square footage. The accompanying data set shows a random sample of 10 homes. Construct a​ 90% confidence interval to estimate the average cost in February to heat a Northeast home that is 2,900 square feet.

Determine the upper and lower limits of the confidence interval.

Suppose a government department would like to investigate the relationship between the cost of heating a home during the month of February in the Northeast and the​home's square footage. The accompanying data set shows a random sample of 10 homes. Construct a​ 90% confidence interval to estimate the average cost in February to heat a Northeast home that is 2,900 square feet.

Determine the upper and lower limits of the confidence interval.

Write an Empirical Model for Addressing the Issues of economic and social cost of opioid in US. 

. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute gross profit realized in 2018?

a.
$100,000.

b.
$200,000.

c.
$300,000.

d.
$150,000.

An unlevered company with a cost of equity of 11% generates $8 million in earnings before interest and taxes (EBIT) each year. The decides to alter its capital structure to include debt by adding $4 million in debt with a pre-tax cost of 7% to its capital structure and using the proceeds to reduce equity by a like amount as to keep total invested capital unchanged. The firm pays a tax rate of 35%.

Assuming that the company's EBIT stream can be earned into perpetuity and that the debt can be perpetually issued (or rolled), what will be the firm's new cost of equity?

An unlevered company (just common stock, no preferred) with a cost of equity of 13% generates $5 million in earnings before interest and taxes (EBIT) each year. The decides to alter its capital structure to include debt by adding $4 million in debt with a pre-tax cost of 7% to its capital structure and using the proceeds to reduce equity by a like amount as to keep total invested capital unchanged. The firm pays a tax rate of 33%.

Assuming that the company's EBIT stream can be earned into perpetuity and that the debt can be perpetually issued (or rolled), what is the firm's new weighted average cost of capital?