Resale va to be in ather a. Using benefit-cost ratio analysis and and 8% MARR, determine which alternative, if any should be selected? b. Compute the IRR for each alternative.
Q: 1. Makati Development Corporation has won the bidding for the construction of a dam for…
A: The depreciation is the reduction in the value of fixed assets, the depreciation is the amount of…
Q: A company is considering two alternatives with regards to an equipment which it needs. The…
A: Equivalent annual worth of both alternatives should be same for calculation of project A to be…
Q: For its fiscal year ending October 31, 2022, Crane Corporation reports the following partial data.…
A: Income Statement - This statement shows the income earned and loss incurred by the organization in…
Q: zero. Annual receipts is ar study period. The con a good investment using
A: As per rule, allowed to answer first three subparts and post the remaining in the next submission.
Q: Value of Investment. Bob purchased stock in a new social media company for $28 per share shortly…
A: Future value is a financial concept that indicates the predicted worth of a sum of money at a…
Q: Income Statement, Lower Portion At the beginning of 2019, Cameron Company's retained earnings was…
A: Income Statement is a financial statement that includes revenue earned and expenses incurred during…
Q: Problem 4. On January 1, 2023, Joseph & Benjamin Company purchased ten-year bonds with a face amount…
A: Bond : Bond is one of the way that company raises finance it issues Bonds at a certain value…
Q: From the following facts, Molly Roe has requested you to calculate the average daily balance. The…
A: Daily balance is given as: Daily balance=Previous balance+ purchases+cash advance - payments
Q: Exercise 4 – 13. Retirement of a Partner with Bonus to the Retiring Partner Mary, Therese, Catherine…
A: The partnership comes into existence when two or more persons agree to do the business and share…
Q: 5.37 Consider the following two mutually exclusive investment projects: Project's Cash Flow A B -…
A: Present value of a cash flow = cash flow/(1+rate)^n for Project A, cash flow and PV of cash flow is…
Q: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each…
A: Capital budgeting is the process by which a corporation examines potential large projects or…
Q: You have found three investment choices for a one-year deposit: 9.1% APR compounded monthly, 9.1%…
A: Solution:- Effective Annual Rate (EAR) means the effective rate for a year after effect of all the…
Q: Exercise 4 - 12. Admission by Investment: Computing New Partner's Cash Investment Timothy and Paul…
A: Let the total share of profit in the new firm be 1 Old partners share in the new firm = 1…
Q: Exercise 4 - 11 Admission by Investment: Computing Old Partners' Agreed Capital Balances with Bonus…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: company 10. Joy Corp. wants to calculate its weighted average cost of capital. The has no sufficient…
A: WACC The weighted average cost of capital is the overall return of the company which is calculated…
Q: Exercise 4 - 9. Admission by Investment: Computing Partners' Agreed Capital Jude and Isidore are…
A: A partnership is a legally binding contract between two or more people to manage and operate a…
Q: If Bob and Judy combine their savings of $1,260 and $975, respectively, and deposit this amount into…
A: To know the account balance after four years we have to calculate the future value. In the question,…
Q: 3. Mr. Bainto has a loan that is to be amortized by paying monthly payments of P 3,200 for 1 year.…
A: Monthly payment (P) = P 3,200 Number of payments (n) = 6 Interest rate = 12% Monthly interest rate…
Q: P 300,000 100,000 200,000 Ignatius 50% Francis 20% Peter 30%
A: When a partner is admitted in a partnership ,he contributes capital that increases the overall…
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: Answer - Given, Asset Cost - 250000 Salvage Value - 30000 Estimated Life - 15 Years Rate of…
Q: Required information An electric switch manufacturing company is trying to decide between three…
A: We will calculate the future worth of all the 3 methods. We will select the method which has the…
Q: 1. Determine the value of M so that the following cash flows will be equivalent at 10%. P 200 P 200…
A: Interest rate = r = 10% Present values of cashflows in both cashflow diagram should be same.
Q: Exercise 13-31 (Algorithmic) (LO. 4) Lisa sells business property with an adjusted basis of $159,600…
A: Gain can be defined as a situation when the value of an asset or property increases, for example,…
Q: On December 1, 2021, your company borrowed $30,000, a portion of which is to be repaid each year on…
A: given On December 1, 2021, your company borrowed $30,000, a portion of which is to be repaid each…
Q: An equipment costing P250,000 has an estimated life of 15 years with a book value of P30,000 at the…
A: Depreciation is the reduction or allocation of cost of asset over the useful life of the asset.…
Q: During the current year, the following manufacturing activity took place for a company's products.…
A: Introduction: FIFO: FIFO stands for First in First out. Which means first received inventory to be…
Q: The construction of a bypass road needs a capital investment of $200,000 and $10,000 would be…
A: The Discounted Payback Period: The discounted payback period is an indicator that gives the number…
Q: The construction of a bypass road needs a capital investment of $200,000 and $10,000 would be…
A: The following information is given in the question Particulars Amount Investment 2,00,000…
Q: 6. Determine the economic life of an $900 laptop computer. Your personal interest rate is 12% per…
A: Economic life is the estimated period of time an asset remains useful to the business or owner. When…
Q: Exercise 4–7. Admission of a Partner by Investment with Bonus to New Partner Maffy and Luz are…
A: Given, Maffy and Luz are partners and their capital balances are as follows: Maffy, P700,000 and…
Q: Given the table below: Variable Company Fixed Cost Price Cost 20.75 2.50 19.00 18.50 3.00 16.25…
A: Indifference is the level of sales where the profit between 2 companies is same. Profit =…
Q: A manufacturer purchases 20,000 units of a product at S1 each, 15,000 at S1.15 each and 5,000 at S2…
A: 20000 Units at $ 1 each 15000 Units at $ 1.15 each 5000 Units at $ 2 each
Q: Suppose that Bank of America sells $20 million in Treasury bills to PNC Bank. Use T-accounts to show…
A: Bonds are a low-risk investing option. It acts as confirmation that perhaps the bond's issuer…
Q: 1. An engineer paid P 110,000 for a P 100,000 bond that pays P 4,000 per year. In 20 years, the bond…
A: Net Rate of interest on the investment = Annual interest +(Redemption value - Initial…
Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is worth 4%…
A: The present value of the perpetuity of P150000 will be the discounting value of perpetual cash flows…
Solve manually.
Step by step
Solved in 3 steps
- Optimum Properties Corp. is considering the construction of a 50-unit condominium near the University Belt area. The 15-year investment study shows the following data: Disbursements Revenue Land P8000 000.00 Land, after 15 yrs P43 000 000.00 Building 25 000 000.00 Bldg, after 15 yrs 8600 000.00 300 000.00 Maintenance/yr Insurance & Tax/yr Rent/unit-yr 120 000.00 1.2% With an estimated occupancy rate of 92% at all times, validate the acceptability of the project using the IRR method. The company applies a 15% MARR on its investments (Ans. Project is acceptable, 15.7%)Optimum Properties Corp. is considering the construction of a 50-unit condominium near the University Belt area. The 15-year investment study shows the following data: Disbursements Revenue Land P8 000 000.00 Land, after 15 yers P43 000 000.00 Building 25 000 000.00 Bldg, after 15 yers 8 600 000.00 Maintenance/yr 300 000.00 Rent/unit-yr 120 000.00 Insurance & Realty Tax/yr 1.2% With an estimated occupancy rate of 92% at all times, validate the acceptability of the project using the IRR method. The company applies a 15% MARR on its investments. (Ans. Project is acceptable, 15.7%)A man decided to Invest in an equipment worth PHP 12,000,000.00 capital with the following data: Expected revenue - PHP 5.8M/year Cost of Operation and Maintenance - PHP2.4/year Taxes and Insurance. - 2% of the first cost/year Expected earnings is 12% minimum Life of the equipment is 5 years with expected value of PHP1.2M after 5 years a. Determine the desirable investment using ROR method and AW method b. What are the ways and means to make it desirable investment c. In what case we should use the present worth and future worth method of economy study?
- A man planned of building a house. The cost of construction is Php800,000 while annual maintenance cost is estimated at Php15,000. If the interest rate is 6%, what is the capitalized cost of the house? ANSWER WITH COMPLETE SOLUTIONA Real Estate Investment Company (REIC) has a weighted average cost of capital at 10% and $2 million of total capital to invest. The REIC aims to earn rental income from the investment and do not intend to sell the property in the short term. Which of the following property is the most appropriate one to invest? Select one: a. Property A: 8% Cap Rate, NOI $400,000 b. Property A: 11% Cap Rate, NOI $180,000 c. Property A: 10% Cap Rate, NOI $100,000 d. Property A: 12% Cap Rate, NOI $300,000 None of the above eYou are given the task to evaluate the value of a rental property. You identified similar properties and calculated average cap rate is 15%. You estimated the property's Net operating Income to be $570,000. What is the maximum price you would pay for the property? Group of answer choices $3.5 million $655,000 $3.8 million $5.7 million
- Suppose that a site can be developed a rental property at a cost of $500,000 with a annual NOI of $65,000. Assuming the cap rates for the building and for the land are 10% and 8% respectively. Calculate the value of the land? O $187,500 O $155,622 O $123,159 O None of the given answers O $118,687An office complex measuring two hundred and three metre square(203m^2) has being offered for sale.The cost of replacing the asset and depreciation is estimated at $1200 and 10% respectively. I. Calculate the market value of the office complex II. If an extension of fifty two metre square (52m^2) has being made to the office complex to be used as a residential facility.Calculate the capital value of the residential facility at a rate of nine hundred metre square(900m^2) a depreciation of 4%. III.If land comparable land values is assessed at $30000. Calculate the value of the subject property.Foz Co. is considering four investment proposals (A, B, C, and D). The following table provides data concerning each of these investments. Compute the missing information pertaining to each investment proposal. (Round your percentage answer to 1 decimal place (i.e., 0.123 to be entered as 12.3).) Investment cost Estimated salvage value Average estimated net income Return on average investment $ A 46,000 10,000 10,000 % $ B 45,000 5,000 4,500 18 % $ C 51,000 5,600 20 % D 2,000 4,500 20 %
- where does the 350k come from?Pads Corp. is contemplating the purchase of a large stamping machine which will cost Php 500,000. With additional transportation and installation costs of Php 40,000 and 65,000. Its market value the end of 5 years is estimated at Php 75,000. What is the accumulated depreciation at the end of year 4 using, (a) declining balance method? (b) sum of the years method? (c) sinking fund method (9%)? Round off your answers to the nearest 2 decimal places.A man planned of building house. The cost of construction is P500,000 while annual maintenance cost is estimated at P10,000. If the interest rate is 6%, what is the capitalized cost of the house?