PLC esti
Q: The manager of a production system expects to spend $100,000 the first year with amounts decreasing…
A: Since you have asked multiple questions we will solve the first question for you. Please resubmit…
Q: Find the BAT total cost of holding cash for your firm if $96,723 is needed each week to pay bills,…
A: Here, Amount needed to pay bill per week is $96,723 Lower Cash Limit is $75,123 Standard Deviation…
Q: en experiencing a severe cash shortage. As one part of your analysis, you want to determine the…
A: Net Working Capital is the excess of Current Assets over its Current Liabilities. It helps in…
Q: Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion…
A: Cash conversion cycle indicates the period taken by a firm to convert it's products into…
Q: BSW & Company has the following data. What is the firm's cash conversion cycle? Inventory…
A: The cash conversion cycle (CCC) is a measure of a company's efficiency in managing its working…
Q: An investment is expected to produce the following annual year-end cash flows: Year 1 Year 2 Year 3…
A: Initial cost-$13,700YearCash flow1$5,000.002$1,127.003$0.004$5,240.005$6,240.006$1,363.40
Q: A firm with $1,000,000 in cash holdings and an ann DCH of 250 days for the next fiscal year.…
A: Cash holdings, also known as cash reserves or cash on hand, are the sums of money that a corporation…
Q: A set of cash flows begins at $60,000 and increases at 10% per annum for the next 12 years. If the…
A: Begining Cash flow is $60,000 Cash flow growth rate is 10% per annum Time Period is 12 Years…
Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…
A: Sequential payment CMOs are treated as collateralized mortgage obligations, including the…
Q: For the cash flows shown, determine the equivalent future worth in year 10 at an interest rate of…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…
Q: Striker Company estimates its expected cash receipts for the period to be $80,000 and its expected…
A: The objective of the question is to determine how much cash the Striker Company needs to borrow in…
Q: a firm will produce Rs 17,000 spread out over the next five years is Rs 3,000; Rs 5,000; Rs 4,000;…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: An arithmetic cash flow gradient series equals $600 in year 1, $800 in year 2, and amounts…
A: According to the value of money concept, the value of money changes over time. Annuity factor is a…
Q: Your firm has a net cash inflow for the quarter of $40. The beginning cash balance is $120. Company
A: Surplus refers to an amount that is in excess of the required amount to maintain the minimum balance…
Q: The Hedge Company has an average age of inventory of 65 days, an average collection period of 60…
A: The cash conversion cycle is calculated with the help of following formula Cash Conversion Cycle =…
Q: 6. Exodus Corp. is analyzing the performance of its cash management. On the average, the firm ho…
A: Cash conversion cycle in the business mean the period in which raw material and other resources…
Q: HotFoot Shoes would like to maintain its cash account at a minimum level of $39,000, but expects the…
A: Given:cash account at a minimum level of $39,000 = Lnet daily cash flows to be $5,400 = marketable…
Q: Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D.…
A: A principal payment is a contribution made to the loan's outstanding balance. There are various…
Q: A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year…
A: The present value of cash flows of investment is computed so that investors can decide whether to…
Q: 2) What is mark-to-market accounting? a. Hint: Use an example to demonstrate the type of accounting…
A: Mark-to-market accounting is a method of valuing assets or liabilities based on their current market…
Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…
A: Years (t)Cash…
Q: 1. You expect to receive $1,000 in one year, $2,000 in three years, and $1,500 in five years. Assume…
A: The principle behind the time value of money is that a certain amount of money today can be invested…
Q: Assume the following free cash flows for Elle Inc. for Year 6 and forecasted FCFF for Year 7 onward…
A: In this we have to calculate the present value of cash flow using discount rate.
Q: Construct a cash flow diagram that represents the amount of money that will be accumulated in 1 year…
A: Initial Investment is 6% The time period is 1 year The interest rate is 6% per year compounded…
Q: What will be its optimal cash return point? (Use 365 days a year. Do not round intermediate…
A: Given:cash account at a minimum level of $42,000 = Lnet daily cash flows to be $5,700 = marketable…
Q: Holly plc expects to receive annual cash flows of £75,000 per year in current price terms for a…
A: Since the discount rate is given in nominal terms and the cash flows are given in real terms, we can…
Q: uary 12, 2009 Ober 17, 2010 | 15, 2011 28 2011
A: a.. To calculate the Net Present Value (NPV) of the investment, we need to discount each cash flow…
Q: Your firm expects to receive a $20,000 payment from a supplier in 25 days. Calculate the increase in…
A: Present value is the equivalent value today of the future cash flow based on the time value of money…
Q: A firm with a cash conversion cycle of 40 days can stretch its average payment period from 15 days…
A: A cash conversion cycle is a measurement of how much time it takes to convert a cash investment made…
Q: . A bank has the following: high-quality liquid assets (HQLA) worth $62 million . Non liquid assets…
A: The correct answer is Ο 159%.Explanation:Certainly! Let's calculate the Liquidity Coverage Ratio…
Q: daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent…
A: Given:Minimum level of $246,000 = LStandard deviation of daily cash flows to be $12,100 = marketable…
Q: A company is expecting annual cash flows of $10,000 in years 6 to 10; $20,000 annually in years 11…
A: Net present value refers to the sum of present values of all cash flows associated with an…
Q: HotFoot Shoes would like to maintain its cash account at a minimum level of $33,000, but expects…
A: Given:Minimum level of $33,000 = LStandard deviation of daily cash flows to be $4800 = marketable…
Q: Paradise Retailers, Inc. (PRI) determined that $1,500,000 is needed for cash transactions made…
A: Baumol model is the cash management model that helps in managing the excess funds by using optimum…
Q: Whaley & Whaley has the following data. What is the firm's cash conversion cycle? Inventory…
A: Inventory conversion period = 41 daysAverage collection period = 31 daysPayables deferral period =…
Q: Suppose that Ken-Z Art Gallery has annual sales of $870,000, cost of goods sold of $560,000, average…
A: This is based on financial ratio analysis. Financial ratios are based on the relationship between…
Q: Display graphically cash flows (calculate repayment of the principal amount and interest for each…
A: Given: Principal amount = 2,000 Period = 3years Interest rate = 11%
Q: A cash flow series is described by the following: $10,000 + $250(t), where t is the number of…
A: Present Worth means the current value of the future stream of cash flows at a specific rate of…
Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…
A: PVA=PMT 1+rn-1/r (1+r)n Present value annuityFVA=PMT1+rn-1/r Future value…
Q: The white oak company's annual sales are 219 million van average of 9 days elapses between when a…
A: GIVEN The white oak company's annual sales are 219 million van average of 9 days elapses between…
Q: A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant…
A: Current Profit = p = $450,000Growth rate = g = 3%Cost of Fund = r = 6%
Q: Assume that an Investment provides the following cash Inflows over a three-year perlod: Year 1 $…
A: PV= Cash inflow* Discounting factor of that year
Q: A report from the marketing department indicates that a new product will generate the following…
A: Discount rate is 11% To Find: Present Value
Q: Find the net present value (NPV) for the following series of future cash flows, assuming the…
A: NPV is the method under which cash inflows that are received during the lifetime of a project are…
Q: Morrisey Company has two investment opportunities. Both investments cost $6,900 and will provide the…
A: Net present value (NPV): Net present value is defined as the summation of the present value of cash…
Q: The Present worth of the company offering good deal of 3,000,000 in cash uopn signing the agreement…
A: Sensitivity analysis is the analysis of seeing the dependency of output value in each input . It…
PLC estimate a cash of $2 500 000 over the next five months. This
amount is available to the firm in the form of marketable securities. It can earn 10%
annual yield on its marketable securities. Conversion of marketable securities into
cash entails a fixed cost of $750 per transaction.
Determine:
i. Optimum cash balance
ii. Average cash holding
iii. Number of transactions
iv. Average number of days per transaction (assume 30 days per month)
v. Total cost of holding cash balance
vi. Per day usage of cash
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Q) For a given company studies indicate that due to the nature of contract business, any excess funds generated are expected to earn at a rate of 11% per year. Use the ROIC method to determine the rate of return on invested capital value for the given cash flow series.(X0=$2,000, X1=$-900, X2=$-7,000, X3=$6,900) Explain it early but not in excel works. Typed or handwriting onlysSuppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)Hollywood Shoes would like to maintain their cash account at a minimum level of $67,000, but expect the standard deviation in net daily cash flows to be $5,700; the effective annual rate on marketable securities to be 6.50 percent per year; and the trading cost per sale or purchase of marketable securities to be $270 per transaction. What will be their optimal cash return point? (Round your answer to 2 decimal places.)
- Cash Flow Series B Cash Flow Series C -$2,330 $2,870 $2,470 $2,070 $1,670 $1,270 Y Y Y - 2Y 2Y 2YCalculate the following from the information given Fego Ltd:1. Payback Period (expressed in years, months and days).2. Accounting Rate of Return on initial investment (expressed to two decimal places).3. Internal Rate of Return (expressed to two decimal places) if the net cash inflows are R400 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.Question. Semis Inc. has an average age of inventory of 70 days, an average collection period of 60 days and an average payment period of 60 days. The firm's total annual outlays for operating cycle investments are $3.65 million. Assuming a 365-day year, how much financing is required to support its cash conversion cycle?
- Find teh present value of the streams of cash flows shown in the following table. Assume that the firms opportunity cost is 14% A: Year Cash Flow 1 -$2100 2 2900 3 4000 4 5900 5 8200 B: Year Cash Flow 1 $9000 2-5 $5000/yr 6 $7200 C: Year Cash Flow 1-5 $12000/yr 6-10 $8000/yr The presevent vaule of stream A, B, and CThe A Company wishes to apply the Miller-Orr model to manage its cash investment. A's management has determined that the cost of either investing in or selling marketable securities is $200. By looking at A Company’s past cash needs, they have determined that the variance of daily cash flows is $10,000. A Company’s opportunity cost of cash, per day, is estimated to be 0.05%. A management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion— a safety stock—of cash of $20,000. Calculate the lower limit, the return point, and the upper limit based on the Miller-Orr model of cash management.For the investment shown in the following table, calculate the total return earned over the unspecified time period. Cash flow during period Beginning-of- period value End-of- period value −$10 $3,200 $2,800 The total return on the investment is __%.
- Annual cash inflows from two competing investment opportunities are given below. Each investment opportunity will require the same initial investment, $50,000. The firm´s required rate of return on investments is 10%. YEAR INVESTMENT A INVESTMENT B 1 $10,000 $ 18,000 2 15,000 10,000 3 20,000 32,000 4 35,000 20,000 Total Cash Inflows $80,000…If average daily remittances are $1 million, and extended disbursement float adds 12 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 15% on excess funds?Given the following information regarding Bank XYZ: DA = 3 years, DL = 5 years, A = $100 million, E = $10 million, we have a flat yield curve that is expected to fall from 8 to 7% in the next 6 months. Answer the following three questions related to this information: Which of the following statements is true? Select the correct answer: 1.- Assets increase from $100,000,000 to $104,629,630 (rounded) 2.- Assets decrease from $100,000,000 to $97,222,222 (rounded) 3.- Liabilities (“Liabilities”) increase from $90,000,000 to $94,166,667 (rounded) 4.- Liabilities (“Liabilities”) decreased from $90,000,000 to $85,833,333 (rounded)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)