A 10-yr project has an initial cost of $400,000 for fixed assets. The fixed assets will be depreciated to a $0 book value using a 20-yr straight line depreciation method.

Each year, annual revenue is $60,000 and cost is $10,000.

After 10 years, you will terminate the project. You expect to sell the the fixed assets for $250,000.

The project is financed by 40% equity and 60% debt. The required rate of return on equity is 12% and the borrowing cost is 4%.

Assume the tax rate is 25%.

What is the project's NPV?

Group of answer choices

-51,056

-21,937

29,441

43,662

Horizon Inc. sells prepaid telephone cards to customers. Horizon then pays the telecommunications company, V-Mobile, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Horizon sells $6,000 of prepaid cards in January 2020. It then pays V-Mobile based on usage, which turns out to be 60% in February and 40% in March. The total payment by Horizon for V-Mobile lines over the 2 months is $4,000.

A. Prepare the journal entries necessary for January and February

B. Compute the revenue, costs and net income Horizon will report in January, February, and March

The following accounts are taken from the financial statements of Facebook Inc. at September 30, 2016. (Amounts are in millions.)

2. Using the balance sheet, indicate whether the total assets of Facebook Inc. at the end of the year were financed primarily by liabilities or by stockholders' equity.

a. Prepare the closing entries for Donovan Co. taken from the following ledger information after adjustment on December 31, 2011 the end of the fiscal year. Accounts Payable $ 47,200 Accounts Receivable 64,300 Accumulated Depreciation 22,750 Administrative Expenses 75,500 Capital Stock 141,750 Cash 39,700 Cost of Merchandise Sold 545,000 Dividends 42,000 Interest Expense 9,000 Merchandise Inventory 93,250 Rent Revenue 7,500 Office Equipment 49,750 Sales 820,500 Selling Expenses 101,500 Depreciation Expenses 6,500 b. What inventory system does Donovan Company use? Periodic or Perpetual?

.

Eccles Paper Inc. is considering a three-year project to manufacture absorbent surgical pads based on its patented line of related products. The project requires immediate investment in equipment at $1,200,000. This will be depreciated straight-line to zero over five years, though the project will only last three years. At the end of the third year the equipment will be sold at a forecasted price of $600,000. Revenue is expected to be $5,200,000 in year one, and will increase by 5% for years two and three. Costs are 90% of sales. If the corporate tax rate is 35% and the cost of capital is 12%, should the project be pursued using the NPV criterion?

Thrifty Storage operates approximately 300? mini-warehouses across Canada. The? company's headquarters are in Medicine? Hat, Alberta. During? 2014, Thrifty earned rental revenue of $ 30.5 million and collected cash of ?$26.0 million from customers. Total expenses for 2014 were ?$20.0 ?million, of which Thrifty paid ?$17.2 million. Required 1. Apply the recognition criteria for revenues and the matching objective to compute Thrifty ?Storage's net income for 2014. 2. Identify the information that you did not use to compute Thrifty ?Storage's net income. Give the reason for not using the information

Alberta Storage operates approximately 300? mini-warehouses across Canada. The? company's headquarters are in Medicine? Hat, Alberta. During? 2014, Alberta earned rental revenue of $ 28.0 million and collected cash of ?$27.6 million from customers. Total expenses for 2014 were ?$20.4 ?million, of which Alberta paid ?$17.7 million. Required 1. Apply the recognition criteria for revenues and the matching objective to compute Alberta ?Storage's net income for 2014. 2. Identify the information that you did not use to compute Alberta ?Storage's net income. Give the reason for not using the information

Which of the following statements about Statutory Accounting Principles is FALSE? I will upvote the fast and accurately reliable answer

Insurers can fully recognize written premiums as earned revenue to minimize their insolvency risk.

Because SAP strives to disclose financial information related to insurer insolvency, the statutory income (loss) amounts on income statements are often unreliable indicators of insurer profitability.

Insurers can only include certain type of assets on their balance sheets, which are called admitted assets.

Underwriting expenses are recognized immediately to provide a conservative view of the insurers' insolvency risk.

Do in excel please.

Sales Budget (Learning Objective 2)

Jefferson Sports Medicine, Inc., offers two types of physical exams for students: the basic physical and the extended physical. The charge for the basic physical is $60, while the charge for the extended physical is $135. Jefferson expects to perform 220 basic physicals and 190 extended physicals in July, 235 basic and 200 extended in August, and 105 basic and 110 extended in September. Prepare the sales budget for the service revenue expected from the physical exams performed for the second quarter (July through September), with a column for each month and for the quarter in total.

10.       A taxpayer is considered to be at risk under the at risk rules for which of the following and under what section of the Code?

a.         money borrowed by another for which payment is guaranteed by the taxpayer; Code Section 469(a).

b.         money borrowed by the taxpayer from another who has an equity interest in the taxpayer’s business; Code Section 61.

c.         qualified nonrecourse financing; Code Section 469.

d.         qualified nonrecourse financing; Code Section _____(if you conclude none of a, b, or c is correct, write in the citation for the correct section of the Internal Revenue Code, including the subsection and paragraph, if applicable).