Values of purchases that a customer has made during the last five months are summarized as below: Month January February March April May Purchase $400 $300 $200 $400 $100 amount Assuming that contribution margin is 25% and the monthly discount factor is 1.5%, we obtain that, as of the end of May, this customer's PCV is about

Values of purchases that a customer has made during the last five months are summarized as below: Month January February March April May Purchase $400 $300 $200 $400 $100 amount Assuming that contribution margin is 25% and the monthly discount factor is 1.5%, we obtain that, as of the end of May, this customer's PCV is about

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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A5 please help....
Please provide the Payback period and Discounted Payback Period:
7:38 Murdoch Pty Ltd is considering thre... Q&A Cash Flows 1. Murdoch Pty Ltd is considering three mutually exclusive projects. The initial cash outflow and after-tax cash inflows associated with each project are show in the following table: Initial Cash Outflow Cash Inflows Years 1-5 Related Questions Textbook Solutio Ask Project X ($) Q Search Project Y ($) 50,000 100,000 115,000 Project Z ($) 27,000 41,000 43,000 A) Calculate the payback period for each period B) Calculate the NPV of each project assuming, that the company has a cost of capital equal to 13% C) Calculate IRR for each project. D) Summarise the preferences dictated by each measure, and indicate which project you would recommend. Explain why. 0 ... My Library Notifications More
Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 ii) NPVS at 10%: d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation: Answer:
Consider a project with the following cash flows: C0 C1 C2 C3 C4 -20,000 9,000 9,000 9,000 9,000 If the appropriate discount rate for this project is 15%, then the NPV is closest to: Select one: a. -$1,872 b. -$5,700 c. $1,872 d. $5,700
Look at the cash flows for projects F and G given below. Cash Flows ($) Project Co F G NPV IRR at C4 C6 C7 Cg C1 C2 C3 (6,000) 4,400 4,400 4,400 ( % ) 10% 52.8 4,942 0 0 0 0 (6,000) 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 32.9 5,737 Project F Project G The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 8% on average. That is, the forecast for each cash flow from each project should be reduced by 8%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 18%. a. What are the projects' true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) Project F Project G NPV at 10% C5 0 b. What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) NPV at 18%
Total project value ($) Debt Option Loan-to-value Rate (%) Interest only period (years) Amortization (years) $35,000,000.00 A 65% 3.25% 3 20 B 70% 3.25% 3 30 C 70% 3.00% 0 30 D 50% 4.25% 0 30
! Required information [The following information applies to the questions displayed below.] On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand $ 31,300 $ 116,000 107,500 Current assets Noncurrent assets 49,200 Total assets $ 223,500 $ 80,500 $ 52,500 66,000 105,000 Current liabilities $ 30,500 Long-term debt Stockholders' equity 50,000 $ 80,500 Total liabilities and equities $ 223,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand's total fair value. The $70,400 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidated balance sheet as of January 2, what should be the amount for…
Consider a project with inflows of $20,000 and outflows of $13,000. If the tax rate is 33%, and if the cash flow in Year 1 is $6,500, what is the depreciation amount? Select one: a. $5,485 b. $5,387 c. $5,333 d. $5,438 e. $5,529
Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow -$2,700 $830 $840 $760 $540 $340 IRR ces 25.49 % Should the project be accepted or rejected? O accepted O rejected
This solution isn't correct cash flow after tax for buying 1 2 3 loan payment $30,658.00 $31,500 $10,500 maintenace cost 2600 2600 2600 less: tax shield 8,326 7,631 6,831 cash outflow after tax for buying $22,332.00 $23,869 $3,669 Under year 1, I got $24,932 (which is the correct answer) instead of $22,332. Can you please look at it again?
Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income Depreciation deducted on tax return in excess of depreciation expense Permanent differences (all related to operating income): Nondeductible portion of entertainment expense The applicable enacted tax rate for all periods is 25%. How much tax expense on income from continuing operations would be reported in Hobson's income statement? Note: Round the final answer to 2 decimal places. $ 230 10 85 175 20