Given the following information for current fiscal year Question:Given the following information for current fiscal yearBeginning balance of plan assets at market value - $1,560,000actual return on plan assets - 210,000employers contribution - 150,000distribution to beneficiaries - 75,000Service cost 125,000Interest cost 156,000Changes in benefits and assumptions - 35,000beginning balance of the PBO - 1,580,000What is the ending balance of the projected benefit obligation (PBO)?

Explanation of Projected Benefit Obligation (PBO): This represents the actuarial present value of…

Answered: Question: Given the following…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.2P

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2 ($ in thousands) Discount rate, 7% Expected return on plan assets, 8% Actual return on plan assets, 7% Service cost, current year January 1, current year: Projected benefit obligation Accumulated benefit obligation Plan assets (fair value)" Prior service cost- AOCI (current year amortization, $30) Net gain- AOCI (current year amortization, $12) There were no changes in actuarial assumptions. December 31, current year: Cash contributions to pension fund, December 31, current year Benefit payments to retirees, December 31, current year Required: 1. Determine pension expense for the current year. $ 500 3,250 2,950 3,350 420 520 435 460 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine pension expense for the current year. Note: Amounts to be deducted should be indicated with a minus sign.…
The following is the total figures over the lifetime oi a project • Revenue (P&L): $300m • Opex (P&L): $50m • Working capital adjustments: $0m • Construction capex: $90m • Interest During Construction (IDC) and Financing Fees (FF): $10m • Maintenance capex: $0m • Tax paid (geared): $30m • Tax paid (ungeared): $50m • Interest paid: $20m • Principal paid: $70m • Equity injection: $30m Calculate the total of CFADS over the lifetime of the project. O $100m O $180m O $200m O $220m O $250m O $280m
You are given the following data for a project that is to be evaluated using the APV method. Year EBIT CAPEX 0 O $201.765 O $193,822 O $185,617 O $222,872 O $213,918 1 $127.000 $60,000 2 Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% Unlevered cost of capital = 11.8% Corporate tax rate = 30% Calculate the total value of the project at t = 0. using the APV method. $72,000 $50,000 $100,000 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000
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Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal Proposal Proposal Initial investment Cash flow from operations Year 1 x Y Z $92,000 $92,000 $92,000 Year 2 Year 3 Disinvestment Life (years) 90,000 46,000 92,000 2,000 46,000 47,500 47,500 0 0 0 3 years 3 years 1 year Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 14 percent. Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate. Proposal X Proposal Y Proposal Z Best proposal Payback period (years) Accounting rate of return; Round answers to 4 decimal places. Net present value; Round answers to nearest whole number. 2 ▾ 17.2098 x 2▾ 1 ▾ Z ÷ 20,547 ✔ 17.2098 x 15,808…
What is the “cross-over” rate of the following projects? Year Project A Project B 0 -1,400 -800 1 950 600 2 950 600
Subject: accounting
You are given the following financial information related to a capital investment project. What is the project's Year 1 Net Cash Flow? Sales revenues Depreciation Other operating costs Interest Exp Tax rate WACC Select one: a. $8,580 b. $8,900 c. $9,350 d. $9,463 e. $9,832 $22,250 $8,000 $12,000 $800 40.0% 12.0%
Preference Ranking Information on four investment proposals is given below Required: 1. Compute the project profitability index for each investment proposal. 2. Rank the proposals in terms of preference.:
Ranking Investment Proposals: Payback Period, Accounting Rate of Return, and Net Present Value Presented is information pertaining to the cash flows of three mutually exclusive investment proposals: Proposal A Proposal B Proposal C $ 45,000 $ 45,000 $ 45,000 Initial investment Cash flow from operations Year 1 Year 2 Year 3 Disinvestment Life (years) 40,000 5,000 22,500 22,500 22,500 22,500 0 0 3 years 3 years 45,000 0 1 year Select the best investment proposal using the payback period, the accounting rate of return on initial investment, and the net present value criteria. Assume that the organization's cost of capital is 12 percent.. Note: Follow rounding instructions noted for each computation. Use a negative sign with your answers, when appropriate. Proposal A Proposal B Proposal C Best proposal Payback period (years) Accounting rate of return; Round answers to 4 decimal places. Net present value: Round answers to nearest whole number. S

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