What is PBO? 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 Beginning PBO:The Projected Benefit Obligation (PBO) is the present value of all…

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 15.3.1P

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Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O c. 1.07 O d. 1.02 5,000,000 2,000,000 1,000,000 20 years 10%
4. What is the fair value of plan assets at year-end? a. 3,650,000 b. 4,650,000 c. 4,900,000 d. 5,850,000 5. What is the projected benefit obligation at year-end? a. 5,650,000 b. 6,650,000 c. 6,400,000 d. 6,450,000
The actual return on plan assets __is equal to interest expenses accrued each year on the projected benefit obligation, just as it does on any discounted debt. __includes interest, dividends, and changes in the fair value of the fund assets. __is equal to the expected rate of return times the fair value of the plan assets at the beginning of the period. __is equal to the change in the fair value of the plan assets during the year.
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
What formula to use to find Payback Period and NPV? (in Excel)
Subject: acounting
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.:

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