Lakeside Inc. invested $735,000 at an 11.25% rate of return. The company sold their investment for $1,067,425. How much longer would Lakeside have had to wait if they had wanted to sell their investment for $1.25 million?

Q: Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Maxwell Corporation wants to acquire a retail chain store, Good Way. After a few round of talks Good…

A: The acquisition of a business is done to expand the existing business and to take synergy benefit.…

Q: We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales…

A: Sales for the current year is $1,500,000 and is expected to increase to $1,875,000 ($1500000*1.25),…

Q: A firm wishes to bid on a contract that is expected to yield the following after-tax net cash flows…

A: Net Present Value (NPV): Net present value is defined as the summation of the present value of cash…

Q: Adidas bought a $36.4 million piece of equipment. It will be depreciated by $6.07 million per…

A: Depreciation is the decrease in value of equipment with time and use of equipment and depreciation…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Equipment's after tax net salvage value = salvage value - tax on capital gain tax on capital gain =…

Q: Assume zero taxes. Equipment can be leased at $10,000 per year (first payment one year hence) for…

A: Given, Equipment lease cost = $10,000 per year Purchase cost = $64,177 Weighted average cost of…

Q: 0 0 $589,811 $612,784 $635,811

A:

Q: Berkshire Hathaway is considering the purchase of A.B.Bearcat. The company, A.B.Bearcat, is expected…

A: To determine how much Berkshire Hathaway must spend in the present to acquire A.B. Bearcat, we must…

Q: A firm invested $120 in a fixed asset that will result in sales of 75 units, each at a price of $14.…

A: OCF represent that amount which is generated by organization to continue its business operations.…

Q: Suppose you sell a fixed asset for $111,000 when its book value is $131,000. If your company's…

A: Given information: Book Value = $131,000 Sale value =  $111,000  Tax rate = 40% or 0.40 Required:…

Q: Chaquille's K-House, Inc. made an investment in a project with an initial cost of $10,729,236. This…

A: Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Q: Now suppose a firm has the following information: $7 million insales, $4 million of costs of goods…

A: SALE = 7,000,000COST OF GOODS SOLD = 4,000,000OTHER EXPENSES = 500,000

Q: Suppose you sell a fixed asset for $99,000 when its book value is $75,000. If your company's…

A: The fixed assets are reflective of all such assets which are helpful for company in the deriving the…

Q: Moda Produce is considering the purchase of a new machine to replace the existing asset. The current…

A: There will be net proceeds ,that is , Cash inflow on sale of old machine. Initial investment outlay…

Q: Chaquille's K-House, Inc. made an investment in a project with an initial cost of $11,064,450. This…

A: Net Present Value (NPV) is the difference between the present value of cash inflows and the present…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Salvage value refers to the residual value, that is, the value at which the equipment can be traded…

Q: corporation want to estimate the terminal cash flow. The proposed machine will be disposed of at the…

A: Terminal cash flow is cash flow you received at end of projects after disposal of equipment.So this…

Q: Suppose you sell a fixed asset for $126,000 when it's book value is $157,000. If your company's…

A: The computation of after tax cash flow is as follows:Hence, the after tax cash flow is $136850.

Q: Bennett Industries invested $10,000,000 in a coventure one year ago. One year later, Bennett…

A: The calculation method where interest on interest is charged is known as Compound Interest. It is…

Q: selling the asset for $180,000. Your firm's marginal tax rate is 34%. What is the cash flow effect…

A: Calculation of Profit/ loss on sale of fixed assets Original costs=$580000 Depreciation=$580000÷5yrs…

Q: Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's…

A: Cash flow is the movement of money in and out of a company.

Q: Next Corporation needs a piece of equipment that costs $270 million. Next can either lease the…

A: Solution: Calculation of Present value of the Cash outflow under Purchase Option : Under purchase…

Q: A firm, whose cost of capital is 9 percent, may acquire equipment for $110,783 and rent it to…

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: You invest $600,000 in cash to become the sole shareholder in a new company. With the $600,000, you…

A: Book to market ratio is the comparison of the book value of an asset with the market value in which…

Q: Blue Company, is trying to assess the feasibility of acquiring an accounting system for $10,000,000.…

A: Accounting system cost = $10,000,000 Saving = $2,000,000 Time Period = 5 Years Cost of capital = 15%…

Q: 2) Determine 3) Determine

A: Company has to do feasibility analysis of the project before doing investment in the projects…

Q: Please solve the question

A: Step 1: Calculate Earnings Before Interest and Taxes (EBIT) EBIT is calculated as sales minus…

Q: Harper Corporation recently sold a used machine for $50,000. The machine had a book value of $75,000…

A: The Loss or Gain on a machine is computed by comparing the purchase price to its Netbook value. A…

Q: A company with a Tax Rate of 22% is going to sell a fixed asset with a Book Value of $134,000 for a…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: Blue Company, is trying to assess the feasibility of acquiring an accounting system for $10,000,000.…

A: Book rate of return is calculated to identify potential profitability of the project in which an…

Q: Consider a firm with a contract to sell an asset for $151,000 four years from now. The asset costs…

A: Selling value =$ 151000Present Value =$ 96000Period = 4 YearsInterest Rate = 13%Profit / (Loss ) =…

Q: Stark Industries reports that its average operating assets are $511,000,000 and its net operating…

A: Residual income is the income that the firm earns over and above the minimum acceptable return of…

Q: 9. Lt. Dan Corporation invested S80,000 in a manufacturing equipment. The salvage value of the asset…

A: The rate of return on investment shows the percentage of return earned by the company on the money…

Q: A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the…

A: Here, Scrap Market Value = $1,200,000 Life of the project = 15 years Interest rate = 14% Tax rate =…

Q: CSY Bhd is a producer of dairy products. The company management decides to replace its equipment.…

A: Current Operating cost if $1500000 and this will be reduced by 30% in Year 1 , remain same for Year…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Original Cost = $11,500,000Depreciation = $11,500,000 × 65% = $7,475,000Book Value = Orginal Cost -…

Q: A company invested P100,000 to purchase a new equipment that will be used to increase the profit but…

A: Annual worth The annual worth is the sum of all the advantages and expenses over the course of a…

Q: A firm buys a piece of equipment for $115,866.00 and will straight-line depreciate it to zero over…

A: Annual depreciation=(Cost-Residual value)/Useful life=(115866/5)=$23173.2/yearAnnual tax…

Q: Six years ago, ABC Company invested $45,525 in a new machinery. The investment in net working…

A: The selling price for the machine is $19,722.The book value of the machine is $12,039.The gain made…

Q: Suppose you sell a fixed asset for $312,000 when its book value is $102,000. If your company’s…

A: After-tax cash flow is the selling price less the tax paid on capital gain. Capital gain is the…

Q: educe its salary cash expense by $2,000,000 per year. The system has a five-year life, it will be…

A: Net Present Value: It is a measure of profitability in absolute dollar terms and is estimated by…

Q: Mojave Corporation was looking at an investment that would generate $5,000 in net income before…

A: WORKING NOTE  1) tax @21%(3000*21%)=630

Q: In the Wall Bricks, Inc.’s balance sheet lists net fixed asset as $12 million. The fixed assets…

A: SOLUTION : Book Value of Net Fixed Assets as per Balance sheet = $12 million - Book Value of Current…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.