Riverbed Corporation purchased machinery on January 1, 2022, at a cost of $278,000. The estimated useful life of the machinery is 4 years, with an estimated salvage value at the end of that period of $32,800. The company is considering different depreciation methods that could be used for financial reporting purposes.

Required:
Prepare separate depreciation schedules for the machinery using the straight-line method, and the declining-balance method using double the straight-line rate.

Answers

Answer 1

Answer:

a. Under straight-line method, annual depreciation expenses are as follows:

Year         Annual depreciation expense ($)

2022                          61,300

2023                          61,300

2024                          61,300

2025                          61,300

b.  Under the declining-balance method using double the straight-line rate, annual depreciation expenses are as follows:

Year         Annual depreciation expense ($)

2022                            139,000

2023                             69,500

2024                             34,750

2025                               1,950

Explanation:

a. Prepare a separate depreciation schedule for the machinery using the straight-line method.

Note: See part a of the attached excel file for the depreciation schedule for Straight-line method.

In the attached excel file, the depreciation rate used for the Straight-line method is calculated as follows:

Straight line depreciation rate = 1 / Estimated useful life = 1 / 4 = 0.25, or 25%

From part a of the attached excel file, we have:

Year         Annual depreciation expense ($)

2022                          61,300

2023                          61,300

2024                          61,300

2025                          61,300

b. Prepare a separate depreciation schedule for the machinery using the declining-balance method using double the straight-line rate.

Note: See part b of the attached excel file for the depreciation schedule for double-declining-balance method.

In the attached excel file, the depreciation rate used for the Double declining-balance method is calculated as follows:

Double-declining depreciation rate = Straight line depreciation rate * 2 = 25% * 2 = 50%

From part b of the attached excel file, we have:

Year         Annual depreciation expense ($)

2022                            139,000

2023                             69,500

2024                             34,750

2025                               1,950

Note:

Under this double-declining-balance method, the depreciation expenses for 2025 is calculated by deducting the salvage value of $32,800 from the 2025 Beginning depreciable amount (i.e. $34,750 - $32,800 = $1,950). The residual value of $32,800 therefore represents the book value on December 31, 2025.


Related Questions

Tin Roof's net cash flows for the next three years are projected at $72,000, $78,000, and $84,000, respectively. After that, the cash flows are expected to increase by 3.2 percent annually. What is the value of the firm if the WACC is 9.32%

Answers

Answer:

$1,279,622.65

Explanation:

The value of the company is the present value of its future cash flows for the three-year planning horizon plus the present value of its continuing value beyond year 3, all discounted using the WACC as the appropriate discount rate.

continuing value=year 3 cash flow*(1+terminal growth rate)/(WACC-terminal growth rate)

continuing value= $84,000*(1+3.2%)/(9.32%-3.2%)=$1,416,470.59

present value of continuing value=$1,416,470.59/(1+9.32%)^3=$1,084,198.23

present value of 3-year cash flows=$72000/(1+9.32%)^1+$78,000/(1+9.32%)^2+$84,000/(1+9.32%)^3

present value of 3-year cash flows=$195,424.42

value of the company=$1,084,198.23+$195,424.42

value of the company=$1,279,622.65  

Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Project X1 Project X2
Initial investment $ (98,000 ) $ (144,000 )
Expected net cash flows in:
Year 1 36,000 76,500
Year 2 46,500 66,500
Year 3 71,500 56,500
a. Compute each project's net present value.
b. Compute each project's profitability index. If the company can choose only one project, which should it choose?

Answers

Answer:

X1 NPV = $15,477.44

X2 NPV = $9,954.96

X1 PI = 1.16

X2 P2 = 1.07

X1 should be chosen

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

X1

Cash flow in year 0 = -98,000

Cash flow in year 1 = 36,000

Cash flow in year 2 = 46,500

Cash flow in year 3 =  71,500

I = 15%

NPV = 15,477.44

X2

Cash flow in year 0 = (144,000 )

Cash flow in year 1 = 76,500

Cash flow in year 2 = 66,500

Cash flow in year 3 = 56,500

I = 15%

NPV = 9954.96

profitability index = 1 + (NPV / Initial investment)

X1 - 1 + (15,477.44 / 98,000) = 1.16

X2 - 1 + (9954.96 / 144,000) = 1.07

X1 should be chosen because it has a higher NPV. this means that the project is more profitable than X2

To determine NPV using a financial calculator take the following steps:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Binford Corporation's contribution margin ratio is 58%, and its fixed monthly expenses are $94,000. Assume that the company's sales for May are expected to be $178,000.
Required:
Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

Answers

Answer:

$9,240

Explanation:

Calculation to Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change

Using this formula

Net operating income = (CM ratio × Sales) - Fixed expenses

Let plug in the formula

Net operating income= (0.58× $178,000) - $94,000

Net operating income= $103,240 - $94,000

Net operating income= $9,240

Therefore the company's net operating income for May, assuming that the fixed monthly expenses do not change is $9,240

Sheller Company estimates that its pension plan asset will earn a return of 10%. The beginning balance of plan assets was $500,000 and the ending balance was $560,000. During the year, the plan earned an actual return of 8%. As a result of this, pension expense will decrease by

Answers

Answer: $50000

Explanation:

From the question, we are informed that Sheller Company estimates that its pension plan asset will earn a return of 10% as the beginning balance of plan assets was $500,000 and the ending balance was $560,000.

Due to this, then the pension expense will decrease by:

= 10% × $500,000

= $50,000

It should be noted that the expected return on plan assets will reduce pension expense by $50000.

Why do mortgage brokers normally have no risk in the mortgage process? A. The broker usually does not loan the money. B. The mortgage broker doesn't sell you the property.
C. The mortgage broker simply brings the home buyer and the lender together. D. All of the above

Answers

Answer

D, all of the above.

Explanation:

Information technology (IT) consists of all the hardware that a firm needs to use in order to achieve its business objectives, whereas information systems consist of only the software and business processes.
A. True
B. False

Answers

Answer:

B. False

Explanation:

Since information technology contains all the types of hardware that the firm should be required for attaining the objectives of the business and on the other hand, the information system contains the decision making that should be improved from time to time not the software & the business processes

So as per the given situation, the given statement is false

Hence, the correct option is b.

Bạn chọn yếu tố nào để định vị bản thân trong tương lai, góp phần nâng cao khả năng tìm kiếm việc làm? Trình bày kế hoạch để thành công trong công tác định vị này ?

Answers

Answer:

quan trọng bản thân thật sự thích cái gì và học chuyên môn về cái mình thíc

Explanation:

VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Per Unit Sales (9,000 units) $450,000 $50 Variable costs 225,000 25.00 Contribution margin 225,000 $25.00 Fixed expenses 184,950 Net income $40,050 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even

Answers

Answer:

Follows are the solution to the given question:

Explanation:

In this question, we assume that there is no change in selling price.

So,  

[tex]\text{Break-even point}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \frac{184950}{25}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7398\ units\\\\\text{Break-even point} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7398\times 50 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 369900\\\\ \text{Margin of safety}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 450000-369900 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 80100\\\\[/tex]

Group Viewer LLC, a software company, used to provide profit sharing plans for its employees. After organizational restructuring, the management decides to replace the profit sharing plans with commissions for each employee. Which of the following is true of Group Viewer LLC?

a. It provided individual incentives; now it provides group incentives
b. It provided group incentives; now it provides organizational incentives
c. It provided individual incentives; now it provides organizational incentives
d. It provided organizational incentives; now it provides individual incentives

Answers

Answer:

d. It provided organizational incentives; now it provides individual incentives

Explanation:

Group viewer have the profit-sharing plan that could be provided the incentive of an organziation to the employees. This plan should be applied sometimes. Now if the commission is changed for each and every employee so it should be an individual incentive

Also the profit-sharing plan should not be either an individual or group incentive but the same should be the part of the organization

Therefore the option d is correct

Northberg Company is preparing a cash budget for August. The company has $16,000 cash at the beginning of August and anticipates $126,000 in cash receipts and $134,500 in cash payments during August. Northberg Company wants to maintain a minimum cash balance of $15,000. To maintain the $15,000 required balance, during August the company must: Group of answer choices Borrow $15,000. Repay $7,500. Repay $8,500. Borrow $7,500. Borrow $8,500.

Answers

Answer:

Borrow $7,500

Explanation:

The calculation of the amount that should be required to maintain the required balance is given below:

Preliminary cash balance

= Opening balance + Cash receipts - Cash disbursements

= $16,000 + $126,000 - $134,500

= $7,500

Since we have to maintain $15,000 so we have to borrow the following amount

= $15,000 - $7,500

= $7,500

Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturityLPC issued the bonds:


Date Cash interest Effective interest Decrease in balance Outstanding balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000

Required:
What is the annual effective interest rate on the bonds?

Answers

Answer:

7%

Explanation:

Calculation to determine the annual effective interest rate on the bonds

Using this formula

Annual Stated interest = Annual cash interest / Face vale of bonds*100

Let plug in the formula

Annual Stated interest =($7000+$7000) / 200000*100

Annual Stated interest=$14,000/20,000

Annual Stated interest=7%

Therefore the annual effective interest rate on the bonds is 7%

On June 1, 2021, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $510,000 and a discount rate of 8%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2021

Answers

Answer: $503,200

Explanation:

Carrying value of note = Face value of note - Interest remaining

Interest remaining = Face value * Periodic interest rate * Number of months remaining / Total number of months for note

= 510,000 * 8%/2 * 2 / 6 months

= $6,800

Carrying value of note = 510,000 - 6,800

= $503,200

Note: Note is for 6 months so periodic interest was divided by 2 to make it a semi-annual rate.

g Economic indicators can help give us Group of answer choices a direction in which economists can push the economy at the macro level. insight into which way the stock market is going to move over the coming year. an understanding of the state of the economy.

Answers

Answer:

The correct option is "an understanding of the state of the economy".

Explanation:

An economic indicators can be described as macroeconomic data that are employed to assess health, state, or growth trends of the economy of a nation. They therefore provide a knowledge of the current status of the economy.

Examples of economic indicators are inflation rate, unemployment rate, gross domestic product (GDP), and among others.

Based on the explanation above, the correct option is "an understanding of the state of the economy". That is Economic indicators can help give us an understanding of the state of the economy.

The role of the financial manager is closely related to three main cash-related activities: Financing Investing Operating.

a. True
b. False

Answers

Answer:

b. False

Explanation:

The role of financial manager has different perspectives, ensuring that the required funding for positive NPV projects  is available such that the firm can increase its shareholders' wealth by investing in profitable investment opportunities.

Investing means when the funds are made available , the manager must priotize those projects with higher opportunities over those with lower growth opportunities.

Lastly, the financial manager is responsible for dividend decisions, what fraction of earnings should be paid out to shareholders as dividends)not operating decisions)

Zeke's Soda is a small company. They have never grown much, but they have never quite gone out of business over their 75 year history.They have a secret recipe for a raspberry soda which is their bestselling drink. It has never been patented, but it has been known only to the family members who run the company ever since Old Zeke came up with it 75 years ago. None of the other employees have access to it.
Soda Giant buys a bottle of Zeke's Soda and runs it through sophisticated equipment that is able to analyze it and determine all of the ingredients. Soda Giant takes what it learns and starts to make and sell a soda identical to Zeke's.Can Zeke's Soda win a trade secret misappropriation action?
a) No, because a secret recipe is not the kind of thing that can be a trade secret.
b) No, because the trade secret protection has expired.
c) No, because Soda Giant did not misappropriate the information.
d) Yes.

Answers

Answer:

it is definitely a

hoakqaaa

I agree with above, a is the answer

is an important factor when
According to your reading material,
looking at your market and its needs.
a.
b.
location
capital
insurance
timing
d.

Answers

Answer:

Explanation:

insurance

According to your reading material, insurance Is an important factor when looking at your market and its needs. Option C is the correct answer.

While factors like location, capital, and timing are important considerations, insurance is also a crucial factor to take into account when assessing your market and its needs. Insurance provides protection and risk management for your business, its assets, and potential liabilities. Option C is the correct answer.

Having appropriate insurance coverage helps safeguard your business against unexpected events, such as accidents, property damage, legal claims, or disruptions to operations. It provides financial protection and peace of mind, allowing you to focus on meeting your market's needs without the constant worry of potential losses. Insurance coverage can vary depending on the nature of your business and industry. Common types of insurance include general liability insurance, property insurance, professional liability insurance, and workers' compensation insurance.

Learn more about Insurance here:

https://brainly.com/question/30291521

#SPJ2

The complete question is, " According to your reading material, ______ Is an important factor when looking at your market and its needs.

a. location

b. capital

c. insurance

d. timing"

Tristan transfers property with a tax basis of $1,255 and a fair market value of $1,570 to a corporation in exchange for stock with a fair market value of $1,255 and $276 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $39 on the property transferred. What is the corporation's tax basis in the property received in the exchange

Answers

Answer: $1531

Explanation:

The corporation's tax basis in the property received in the exchange will be the addition of Tristan's Tax basis and the gain that's recognized on exchange by Tristan.

The gain realized will be:

= $1,570 - $1,255

= $315

Boot received = $276

Therefore, lower of $315 or $276 is $276.

The corporation's tax basis in the property received will then be:

= $1255 + $276

= $1531

Riverbend Inc. received a $240,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,710,000 before deducting the dividends received deduction (DRD), a $50,500 NOL carryover, and a $153,000 charitable contribution.
Corporate Income Tax Rates
Taxable Income Tax
$50,000 15% of the taxable income
$50,000-$75,000 $7,500 + 25% of taxable income over $50,000
$75,000-$100,000 $13,750 + 34% of taxable income over $75,000
$100,000-$335,000 $22,250 + 39% of taxable income over $100,000
$335,000-$10,000,000 $113,900 + 34% of taxable income over $335,000
$10,000,000-$15,000,000 $3,400,000 + 35% of taxable income over $10,000,000
$15,000,000-$18,333,333 $5,150,000 + 38% of taxable income over $15,000,000
Over $18,333,333 35% of the taxable income
a. What is Riverbend’s deductible DRD assuming it owns 11 percent of Hobble Corporation?
b. Assuming the facts in part (a), what is Riverbend’s marginal tax rate on the dividend?
c. What is Riverbend’s DRD assuming it owns 36 percent of Hobble Corporation?
d. Assuming the facts in part (c), what is Riverbend’s marginal tax rate on the dividend?
e. What is Riverbend’s DRD assuming it owns 89 percent of Hobble Corporation (and is part of the same affiliated group)?
f. Assuming the facts in part (e), what is Riverbend’s marginal tax rate on the dividend?

Answers

I am sorry, but I don’t understand. Wish I could help

Higher customer satisfaction and more efficient use of resources are impacts of businesses that operate with a _______
a: cost saving motive
b: customer service motive
c: efficiency motive
d: profit motive

Answers

Answer:

customer service motive

Answer:

I believe it's C: efficiency motive.

Explanation:

I did inspect element on course hero for the same question, and the answer was highlighted. Additionally, the question seems to highlight efficient uses of resources purposefully in businesses, so it seems that efficiency motive also goes hand in hand with that.

In the current year, Marnie rented her vacation home for 75 days, used it for personal reasons for 22 days, and left it vacant for the remainder of the year. Her income and expenses are as follows: Rental income $ 18,000 Property taxes 2,500 Mortgage interest 3,500 Utilities 1,100 Repairs and maintenance 1,000 Depreciation 5,200 What is Marnie's net income or loss from the activity

Answers

Answer: $11123

Explanation:

Based on the information given, Marnie's net income or loss from the activity will be calculated thus:

Rental income = $18000

Less: Property tax = $2500 × 75/365 = $514

Less: Mortgage interest = $3500 × 75/365 = $719

Less: Utilities = $1100 × 75/97 = $851

Less: Repairs and Maintenance = $1000 × 75/97 = $773

Less: Depreciation = $5200 × 75/97 = $4021

Net income = $11,123

Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today are $250, real net returns to land are assumedto increase by 5% each year, inflation is 4%, the marginal tax rate is 20%, and thepretax risk adjusted discount rate is 10%.
a. 270.10
b. 216.08
c. 105.27
d. 163.84

Answers

Answer:

b. $216.08

Explanation:

Fn = Fo * (1+g)^n

Fn = $250*(1.05)^7

Fn = $250*1.40710

Fn = $351.775

Nominal net returns = $351.775 * (1.04)^7

Nominal net returns = $351.775 * 1.315932

Nominal net returns = $462.912

After tax return = Nominal net returns * (1 - 20%)

After tax return = $462.912 * (1 - 0.2)

After tax return = $370.33

After-tax, risk adjusted discount rate = 0.1*(1 - 0.2)

After-tax, risk adjusted discount rate = 0.1*0.8

After-tax, risk adjusted discount rate = 0.08

After-tax, risk adjusted discount rate = 8%

PV after-tax net return in 7th year = After tax return * (1+8%)^-7

PV after-tax net return in 7th year = $370.33 * (1+0.08)^-7

PV after-tax net return in 7th year = $370.33 * 0.583490

PV after-tax net return in 7th year = $216.08

Make-It Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is 1. neither illegal nor unethical. 2. unethical only. 3. illegal and unethical. 4. illegal only.

Answers

Answer:

Option 3

Explanation:

In simple words, the given case depicts the act of bribing under which one party gives certain favor to other party for their own benefit. In United states, this conduct is illegal and unethical. Bribing is done to get some extra benefits on the cost of society benefit and strict actions are taken against both parties if such claims comes to be true.

Thus, the correct option is 3.

Management uses a voucher system to help control and monitor cash payments. Identify the key documents that are part of a voucher system of control.

a. Invoice
b. Outstanding check
c. Purchase order
d. Voucher

Answers

Answer:

a. Invoice

c. Purchase order

d. Voucher

Explanation:

Voucher system can be regareded s method used in authorization of the the disbursement of cash. In this system, A voucher will be filled out, this filled voucher will give amount to

be paid for as well as account number to be charged. After the approval of the voucher , there will be authorization of the disbursement system so that payment can be issued.

It should be noted that the Management uses a voucher system to help control and monitor cash payments. the key documents that are part of a voucher system of control are;

✓Invoice

✓ Purchase order

✓Voucher

Bob has saved $30 per week to buy a new Blu-ray player. He compares two different models: a Panaview that is priced at $130 and a Zony model that is priced at $140. Bob decides to purchase the Zony Blu-ray player for $140. Identify what role money plays in each of the following parts of the story.

a. Sean can easily determine that the Panaview model has a lower price than the Zony model.
b. Sean saved $30 per week.
c. Sean pays $140 for the Blu-ray player.

Answers

Answer and Explanation:

The categorization is as follows:

a. It is a unit of account as it determined the panaview model along with the zony model plus the comparison is also there

b. It is the store of value because the saving should be the similar value over the time

c. It is the medium of exchange as he has purchased the player where the money is exchanged with the product

In this way it should be categorized    

Angelika is the Chief Operating Officer of One Spice Inc., a firm that grows and processes the Naga Viper pepper, one of the world's hottest peppers. Angelika wants to better understand the relationship between her firm's organizational culture and the ability to achieve competitive advantage. The relationship between these two states that:______.
a. having a strong culture leads to achieving a competitive advantage only when companies are pursuing a cost leadership strategy.
b. a firm can achieve a competitive advantage when their organizational culture follows the VRIO principles.
c. having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.
d. having a strong culture always leads to achieving a competitive advantage because it leads to greater employee engagement.

Answers

I think it’s c (sorry is it’s wrong)

The relationship between two states that having a strong culture leads to a competitive advantage only when companies are pursuing a differentiation strategy.

What is the term Competitive advantage about?

Competitive advantage refers to a manner in which rivalry between rivals can be created. The benefit for the consumer is improved by both lower prices and more advantages and services which support higher pricing.

In general, there are four possible ways for a company to differentiate–becoming the cost leader in a small or wide range of business activities (i.e., being the cheapest producer in the industry), and becoming a differentiation leader (i.e. competing in areas other than price valued by customers).

Therefore, correct option is C.

Learn more about competitive advantage , refer to the link:

https://brainly.com/question/5647002

what is the definition of abuse

Answers

Answer:

The improper usage or treatment of a thing, often to unfairly or improperly gain benefit. Abuse can come in many forms, such as physical or verbal maltreatment, injury, assault, violation, unjust practices, crimes, or other types of aggression.

Explanation:

Broker Brad accidentally deposited his commission in the trust fund account instead of his business account. Because it remained in the account for more than 25 days, he is guilty of:

Answers

Answer:

Commingling non-trust funds with trust funds

Explanation:

Trust funds

This is simply known as money or other valuable items that is received by the broker on behalf of another individual.

Non-trust funds

This are simply real estate commissions, general operating funds, rents and deposits.

Commingling

This is simply the act of combining a client's money with the agent's personal funds and it is illegal. It is the act of putting or depositing rent and security deposit into the trust account. When a Commissioner audits the account and sees either commingling of trust funds, the court may issue an order to restrain the broker from further mishandling of trust funds and from practicing real estate. It is a violation of real estate law if the trust account is commingled and it is considered commingling when the trust funds are first deposited into the general brokerage account and then transferred to the trust account.

If a licensee is found guilty of conversion of trust funds

1. There will be a revoke the license of the licensee.

2. The assets of the licensee may be sold to recover the converted funds.

3. The receiver account may be imposed on the licensee's assets in order to find and recover the converted funds.

Draw a demand for dollars curve. Label it D. Draw a supply of dollars curve. Label it S. Draw a point at the equilibrium quantity and equilibrium exchange rate. Draw an arrow between the D and S curves that indicates a price at which there is a surplus of dollars. Label it. What happens in the foreign exchange market when a surplus of dollars​ exists? When there is a surplus of dollars in the foreign exchange​ market, _____

Answers

Answer:

The forces of demand and supply in the market will pull the foreign exchange market into equilibrium.

Explanation:

When there is a surplus of dollar in the foreign exchange market the forces of demand and supply  will pull the foreign exchange market into equilibrium. i.e. The exchange rate will be reduced to bring the exchange market to equilibrium. without change in demand or supply.

attached below is the required graph.

On October 1, 2020 Sheffield Corp. issued 5%, 10-year bonds with a face value of $6140000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. Bond interest expense reported on the December 31, 2020 income statement of Sheffield Corp. would be:_________

Answers

Answer: $70610

Explanation:

Following the information given, the issue price of the bond will be:

= $6,140,000 × 1.04

= $6,385,600

The premium on bonds payables will be:

= $6,385,600 - $6,140,000

= $245,600

Cash interest Payables will be:

= 6,140,000 × 5% × 3/12

= $76,750

Bond Premium amortization for Each Year will be:

= 245,600 / 10

= $24,560

Then, the premium amortized will be:

= $24,560 × 3/12

= $6,140

Therefore, the interest expenses on Dec 31 will be:

= Cash interset Payables - Premium amortized

= $76,750 - $6,140

= $70,610

Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual operations and maintenance. The boutique generates $3,000 in revenues every year. Kermit uses a 10 year planning horizon and a MARR of 12%. The correctly calculated Rate of Return for this project is ________________%.

Answers

Answer:

8.14

Explanation:

The Rate of Return is 8.14 from my calculations which you can find in the attached file.

Now since the Rate of return is 8.14. Which is less than MARR of 12%, it shows that investment is not good.

Year Initial Annual Maintenance Annual Revenue Total Cash Flow

0 -$10,000 -$10,000

1 -$1,500 $3,000 $1,500

2 -$1,500 $3,000 $1,500

3 -$1,500 $3,000 $1,500

4 -$1,500 $3,000 $1,500

5 -$1,500 $3,000 $1,500

6 -$1,500 $3,000 $1,500

7 -$1,500 $3,000 $1,500

8 -$1,500 $3,000 $1,500

9 -$1,500 $3,000 $1,500

10 -$1,500 $3,000 $1,500

Internal Rate of Return 8.1442% [IRR() in excel]

The rate of return is 8.1442 which is less than MARR of 12% investment is not worth it

Other Questions
present perfect tense Select all that apply.Zack is taking a test in which he answers questions at a rate of question per minute. If Q represents questions andM represents minutes, which of the following equations describe this rate relationship?M= 20 x QQ = 2 x MM=1/2 x QQ=1/2 x M Convert 63F to degrees Celsius.If necessary, round your answer to the nearest tenth of a degree.Here are the formulas.599F=-C+325c=E(F-32)+ When Americans moved west to settle our country, they did this for many reasons. Identify one example of a pushfactor and one example of a pull factor that may have encouraged Americans to make this journey. Write your answerin at least two to three sentences.Save and ExitNextSubmitMark this and return Does light have a shadow? What is one drawback shared by both monopolies and oligopolies. How did Georgia differ from colonies in the north -2(4x-6)=6-6x help me At midday, what is happening in the leaf of a plant?. Change into undirect speech of He said to me, "Did you eat any green vegtables Maxden wanted to measure the length of the objects below.For each one circle which unit of measurement he should use.A. His puppyInches or Yards B. A toy carYards or CentimetersC. Width of his deskYards or FeetD. His footInches or Yards The language used in texting is acceptable in business writing. True or false 8% of 60 is half of what number PLEASE HELP!!!!!!!!Which phrase best describes the context of a speech?A. The crowd's overall feelingsB. The visual aids the speakly usesC. The quality of the fact-checkingD. The evidence the speech presents Which ordered pair is in the solution set of 3x 2y -1? F.(-2, -2.5) G.(-1, 1) H.(2, 4) J.(1, 2.5) Line segment ab is a tangent to circle o at point b. Which type of triangle is always formed when points a,b and o are connected?. Steve approached Takumi after math class to see if he could get some help with his homework. He sought out Takumi because he is Asian American and so Steve assumed that he must be really good at math. Steve's belief about Takumi's skills is known as a: I need help. Whats the answer? Many people do not live good lives in their home countries. hey will you be a friend to my best her name is alexzicancelperez she has only one friend and that me can please be her friend anyone