Bill took two W-2’s to his tax preparer to prepare his taxes for the previous year. Both of them were from the same employer. His employer’s accounting period (tax year is July 1 – June 30). All of the following are possible reasons for Bill to have two Forms W-2 except: a) One of the W-2’s is for the wrong year. b) One of the W-2’s was corrected. c) They are duplicate copies. d) Since Bill’s tax year is the calendar year, the employer issued a separate W2 to Bill for each half of the employer’s tax year.
In: Accounting
Exercise
| 1. Graph three plots Sales, Forecast, center moving average | ||||
| 2. Predict the sales in year 5 for each quarter using forecasting | ||||
| Quarter Data for Car Sales | ||||
| Year | Quarter | Sales (1000's) | Moving average (4) | Center moving average (baseline) |
| year 1 | 1 | 4.8 | ||
| 2 | 4.1 | |||
| 3 | 6 | |||
| 4 | 6.5 | |||
| Year 2 | 1 | 5.8 | ||
| 2 | 5.2 | |||
| 3 | 6.8 | |||
| 4 | 7.4 | |||
| Year 3 | 1 | 6 | ||
| 2 | 5.6 | |||
| 3 | 7.5 | |||
| 4 | 7.8 | |||
| Year 4 | 1 | 6.3 | ||
| 2 | 5.9 | |||
| 3 | 8 | |||
| 4 | 8.4 | |||
In: Statistics and Probability
A five-year project, if undertaken, will require an initial investment of $95,000. The expected cash flows are:
Year 1: $12,000
Year 2: $39,000
Year 3: $39,000
Year 4: $30,000
Year 5: $18,000
If the appropriate discount rate for this project is 15 percent, what is the value of this project today?
Relevant time for $12,000:?
Relevant time for $39,000:?
Relevant time for second $39,000:?
Relevant time for $30,000:?
Relevant time for $18,000:?
Relevant rate:?
Value of $12,000:?
Value of $39,000:?
Value of second $39,000:?
Value of $30,000:?
Value of $18,000:?
Total value:?
Compared to the initial investment, should this project be undertaken?
In: Finance
Suppose the fixed basket of goods used to calculate the CPI consists of 4 units of good A, 3 units of good B, and 2 units of good C. From year 1 to year 2 the prices of the goods changed as shown in the table. Year 1 is the base year. Price in year 1 Price in year 2 Good A $2.20 $2.53 Good B $3.40 $3.74 Good C $5.60 $5.88 The price of good A changed by %, the price of good B changed by %, and the price of good C changed by %. The overall inflation rate was %. Enter numbers rounded to the nearest whole number.
Help please!
In: Economics
|
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1,810,000 in annual sales, with costs of $700,000. The project requires an initial investment in net working capital of $450,000, and the fixed asset will have a market value of $480,000 at the end of the project. |
| a. |
If the tax rate is 25 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? |
| b. | If the required return is 12 percent, what is the project's NPV? |
In: Finance
Which of the following statements is TRUE regarding recapture for listed property under §280F? No depreciation is claimed for the item for the year in which recapture is made. The year following the year of recapture, use the general depreciation system (GDS), unless business use of the item drops to 50% or less. The year following the year of recapture, use the straight-line (SL) method in the general depreciation system (GDS), as long as the business use of the item is 50% or less. The year of the recapture and in all subsequent years of depreciation, use the straight-line (SL) method over the alternative depreciation system (ADS) recovery period. Mark for follow up ________________________________________.
In: Accounting
*assume the child will be in college for four years*
(A) It is estimated that 18 years from now college tuition will be $42,000 per year. If your child was born today, how much will you need to put away per year, at the end of each year through your child's 18th birthday, so that no additional payments need to be made after year 18? Assume i = 3%
(B) Assume the same parameters as A, but now assume that after year 18, tuition will increase $1,500 per year.
(C) Check your answer to B above by computing the same figure using a different method.
In: Economics
In: Finance
In: Finance
Joe can purchase one of two annuities.
Annuity 1: A 10 year decreasing annuity immediate with annual
payments
of 10, 9, 8, ..., 2, 1.
Annuity 2: A perpetuity immediate with annual payments: the
perpetuity
pays 1 in year 1, 2 in year 2, 3 in year 3, ...., 11 in year 11.
After year 11, the
payments remain constant at 11.
At an annual e§ective interest rate of i, the present value of
Annuity 2 is
twice the present value of Annuity 1. Calculate the present value
of Annuity 1
at this annual e§ective interest rate of i.
In: Finance