QUESTION 3A retailer, Lewis John constructed a new store at costof RM50 million over 6 months from 1 Jan to 30June 20x9. To assist the financing of the project thecompany raised a RM40 million 10% loan on 1 Jan.The loan was repaid on 30 Sept. The store did notopen until the following year.Required:Calculate the initial cost valuation of the store

Borrowing Cost are the costs that are directly attributable to the acquisition, construction or…

Answered: QUESTION 3 A retailer, Lewis John…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Knowledge Check A purchase of a backhoe with an 8-year life requires an initial investment of $88,300, has positive cash flows of $10,000 per year, and has an estimated salvage value of $21,700. Indicate the inputs to be entered into the financial calculator keys. What is the return of the investment? (Round internal rate of return to two decimal places (e.g., 52.75%).) Inputs Calculator Keys IRR N 8 -2.143 % ? | PV 88300 i PMT 10000 FV
a and b please
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デジタル形式で段階的に解決ありがとう!! SOLVE STEP BY STEP IN DIGITAL FORMAT 1-Determine the investment recovery period for the company Industrias packaging sa de cv. The company is considering the purchase of a new machine and must choose between two alternatives: **The first machine requires an initial investment of $14,000 and will generate annual after-tax cash inflows of $3,000 for the next 7 years. **The second machine requires an initial investment of $21,000 and will provide an annual after-tax cash inflow of $2,300 for 10 years. a) Determine the payback period for each machine. b) Comment on whether the acquisition of the machines is acceptable, assuming that they are independent projects. c) Which machine should the company accept? Because?
Question 4: Jerry's Concrete allows his customers to create six-month promissory notes on any stamped concrete driveway project with interest at 8.9%. Three months after completing a $17,300 job on February 2, 2022, Jerry had some liquidity problems and sold the promissory note to a financial institution at a simple interest rate of 10.35%. Calculate Jerry's proceeds on the sale
QUESTION 12 A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of $15,000.00 and finances the balance at 6.0% APR over 60 months. The monthly payment is $889.33. A split second after making the 12th payment, the company owner decides to pay the remaining balance on the loan. What is the total amount due to pay off the balance? Use the actuarial method. If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635, in your textbook to solve this problem, the result will match exactly with one of the answers. If you use a spreadsheet to do the computation, your result will not match exactly with any of the answers, but it will differ only very little (mostly less than $1) from the "correct" answer. O $31,418.37 O $33,772.15 O $37,867.33 O $44,784.81
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Question 2 A company is considering an issue of Commercial Paper (CP) to raise $15 million. The issue will mature in 30 days. It will be issued at a discount of 40 basis points. The dealer will charge an annualized fee of 10 pasis points and will require a backup letter 0.1% 0,4% of credit (L/C) to be issued in its favour at a cost of 25 basis points. 0.25% Required: Assuming a 360-day year, calculate: Par value Dollar discount a) the usable funds that the company will raise upon issue of the CP b) the pro-rated dealer fee c) the pro-rated L/C fee d) the effective annual interest that the company is paying for the credit it raises through the issue of CP
a)A retailer is considering opening a new store as a business venture. The purchase price of the store will be £2 million and there will be a further investment required of £0.5 million 6 months after purchase.The store will open 12 months after purchase. Revenues less running costs are expected to occur continuously and will be £0.2 million in the first year of operation, £0.25 million in the second year of operation and thereafter increasing at yearly intervals by 4% per annum compound.Eight years after purchase, a major refit costing £0.8 million will be required. Fifteen years after purchase, it is assumed that the store will be closed and sold for £6.4million.The retailer requires a rate of return on its investment of 10% per annum effective.i)Calculate the net present value of the venture. It is now assumed that the revenue less running costs will be received mid-way through each year, rather than continuously.ii)Explain how your answer to part (i) would change. b)A loan is to be…

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