1. Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb worked full-time in the business and invested Php300,000 to acquire it and stock it with goods. Beb just tumed down a Php250,000-per-year compensated position as the manager of another store. During the year, he did not pay himself a wage. Revenues Costs Sales Inventory Adjustment Php550,000 Wholesale clothing 20,000 Equipment Labor Php300,000 20,000 150,000 10,000 ULilites and insurance Total Revenues Total Costs

1. Beb's Trinity Store's annual income statement for 2019 is shown in the table below. Beb worked full-time in the business and invested Php300,000 to acquire it and stock it with goods. Beb just tumed down a Php250,000-per-year compensated position as the manager of another store. During the year, he did not pay himself a wage. Revenues Costs Sales Inventory Adjustment Php550,000 Wholesale clothing 20,000 Equipment Labor Php300,000 20,000 150,000 10,000 ULilites and insurance Total Revenues Total Costs

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

See similar textbooks

Similar questions

music studio predicts its future yearly net income (loss) to be as follows: Year 1: - $120Year 2: + $20Year 3: + $90Year 4: - $10Year 5: + $30Year 6: + $30Year 7: + $30Year 8: + $40 What is the NPV of the company, considering a discount rate of 10%?
If $476 invested today yields $500 in one year's time, what is the discount rate?
Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
D. Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes. Calculate the profitability index for keeping the old backhoes and purchasing new backhoes. The following information is available to use in deciding whether to purchase the new backhoes or old backhoes. Using the 8% Present Value of an Annuity of 1. Old Backhoes New Backhoes Purchase cost when new $90,000 $200,000 Salvage value now $42,000 Investment in major overhaul needed in next year $55,000 Salvage value in 8 years $15,000 $90,000 Remaining life 8 years 8 years Net cash flow generated each year $30,425 $43,900 Answer that Bartebly provided is down below. My Questions is: Can you display what Pv factor you used to get the a present value calculations. can you leave the the present value calculations to 6 digits.…
D. Discuss the payback method and what the payback periods of the old backhoes and new backhoes reveal about whether the company should purchase new backhoes or continue using the old backhoes. Calculate the profitability index for keeping the old backhoes and purchasing new backhoes. The following information is available to use in deciding whether to purchase the new backhoes or old backhoes. Using the 8% Present Value of an Annuity of 1. Old Backhoes New Backhoes Purchase cost when new $90,000 $200,000 Salvage value now $42,000 Investment in major overhaul needed in next year $55,000 Salvage value in 8 years $15,000 $90,000 Remaining life 8 years 8 years Net cash flow generated each year $30,425 $43,900 Answer that Bartebly provided is down below. My Questions is: Can you display what Pv factor you used to get the approximate present value calculations. My Question: Can you also provide the…
Suppose you sell a fixed asset for $109,000 when its book value is $129,000. If your company’s marginal tax rate is 39 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? (Enter your answer as a whole number.)
Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
Suppose you sell a fixed asset for $110,000 when its book value is $130,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what wilIl be the after-tax cash flow of this sale)? (Enter your answer as a whole number.)
Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? Multiple Choice $112,000 $0 $68,320 $34,720
In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a zero NPV for both the insured and the insurer. As such, the present value of the expected loss is the actuarially fair insurance premium. Suppose your company wants to insure a building worth $390 million. The probability of loss is 1.29 percent in one year, and the relevant discount rate is 3.1 percent. a. What is the actuarially fair insurance premium? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. Suppose that you can make modifications to the building that will reduce the probability of a loss to .80 percent. How much would you be willing to pay for these modifications? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) a. Insurance premium b. Maximum cost
What could be the solution to the attached?
Suppose you sell a fixed asset for $125,000 when its book value is $139,000. If your company's marginal tax rate is 30%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? Group of answer choices a. $120,080 b. $129,200 c. $9,800 d. $14,000