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?

The cost in dollars of operating a jet-powered commercial airplane Co is given by the following equation
Co = k*n*v^(3/2)
where
n is the trip length in miles,
v is the velocity in miles per hour, and
k is a constant of proportionality.
It is known that at 590 miles per hour the cost of operation is $300 per mile. The cost of passengers' time in dollars equals $226,000 times the number of hours of travel. The airline company wants to minimize the total cost of a trip which is equal to the cost of operating plus the cost of passengers' time.
At what velocity should the trip be planned to minimize the total cost?
HINT: If you are finding this difficult to solve, arbitrarily choose a number of miles for the trip length, but as you solve it, you should be able to see that the optimal velocity does not depend on the value of n​