very successful health and recreation club wants to construct mock mountain for Climbing and exercise outside for its customers use. Because of its ocation, there is a 35% chance of a 120-day season of good outdoor weather, a 45% chance of a 150-day season, and a 20% chance of a 165-day season. he mountain will be used by an estimated 325 persons each day of the 4-month (120-day) season, but by only 100 per day for each extra day the season sts. The feature will cost $435,000 to construct and require a $20,000 rework every 4 years, and the annual maintenance and insurance costs will be 54,000. The climbing fee will be $4 per person. If a life of 12 years is anticipated and a 10% return is expected,what is the NPV of this project?

Q: SAC uses the net realizable at split-off approach to allocate joint costs and treats the sales value…

A: A split-off point is the location in a production process where jointly manufactured products are…

Q: c) d) Which project(s) would you select if you used the IRR methods. Why? If these were mutually…

A: Answer C: Project B should be selected as it has a higher IRR.

Q: uestion 20 options:   $100; $100; $100; $100    $0; $0; $0; $400   $350; $0; $0; $0   $50; $50;…

A: Net present value (NPV) results when the present values of all cash flows are summed up. NPV is a…

Q: Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs…

A: In order to account for the time value of money, present value, or PV, is a concept in finance that…

Q: The Timing Problem - I Project A Project B $10,000 $1,000 $1,000 + 1 0 -$10,000 $1,000 0 -$10,000 +…

A: Net present value (NPV) is the difference between the current value of cash and the future worth of…

Q: Given a MARR of 13%, which alternative should the company select? Alternative IRR PW(13%) A 18.6…

A: Minimum acceptable rate of return also known as the hurdle rate is defined as the minimum rate which…

Q: Cost per option: $219 Exercise Price: $104 Stock Price: $387 Quantity: 10. Profit: $

A: Options The money that an investor makes when they buy a call option and then sell it is known as a…

Q: I need typing clear urjent no chatgpt use i will give 5 upvotes

A: NPV with a discount rate of 0%:NPV = Sum of all cash flows - Initial investmentCash flows: $227,850…

Q: 3. Future worth 4. IRR Alternative ID First cost, $ Annual cost, $/yr Annual Income, S/yr Life, yrs…

A: If we need to find the best alternative among the mutually exclusive project, we use capital…

Q: Nantor Corporation has two divisions, Southern and Northern. The following information was taken…

A: COMMON FIXED COST Common Fixed Expense are those Expenses which is Incurred by the Corporation's at…

Q: One of the mutually exclusive alternatives below must be selected. Base your recommendation on…

A: Incremental cash flow is the extra working cash flow that an association gets from taking on another…

Q: Project CO C1 C2 IRR Alpha -400,000 241,000 293,000 21 21 Beta -200,000 131,000 172,000 31

A: To determine which project to choose between Alpha and Beta using the IRR (Internal Rate of Return)…

Q: Kevin is the financial manager of Levingston BMW. The shop allows employees to purchase up to two…

A: Taxable income is the total sum of income that an entity earns minus the adjustments and deductions…

Q: Retained earnings Total liabilities and stockholders' equity The difference between cash receipts…

A: Introduction:- Expected cash receipts are sum of cash collection that is expected to getting in the…

Q: ompany issues 7%, 7-year bonds with a par value of $170,000 on January 1 at a price of $179,602,…

A: The annual interest paid on the bond is the coupon rate of the bond into the par value of the bond.…

Q: At year-end, the Circle City partnership has the following capital balances: Manning, Capital…

A: A partnership is an agreement between two or more partners where partners agree to work together for…

Q: Multiple Choice O O O $58,000 $54,400 $64,400 $46,600

A: Operating expenses are those which are incurred for running the day to day activities of the…

Q: Assume a company had net income of $65,000 that included a gain on the sale of equipment of $4,000.…

A: Net cash provided by operating activities can be found on the statement of cash flows which shows…

Q: In a Treasury auction of Rs 2,500 million par value 91-day T-bills, the following bids were…

A: The Treasury will conduct the bidding process for T-bills in descending order of price, meaning that…

Q: Year A В -400,000 55,000 55,000 55,000 225,000 225,000 -600,000 300,000 300,000 50,000 50,000 50,000…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Using the information below, calculate net cash flows from operating activities: Net income Receive…

A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…

Q: Required information [The following information applies to the questions displayed below.] On…

A: A company that has significant influence in another company’s voting stock is known as the Holding…

Q: On October 7, 2022 (Friday), you purchased $100,000 of the following T-bill: Maturity Bid Asked Chg…

A: T-bills are securities that do not pay a coupon. They are usually sold at a discount and at maturity…

Q: Consider the following two projects: Cash flows Project A Project B C0�0 −$ 240 −$ 240 C1�1 100 123…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: Time O Time 1 Time 2 Time 3 Project A -10,000 5,000 4,000 3,000 If WiseGuy Inc is choosing one of…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: Information for Hobson Corporation for the current year ($ in millions): Income from continuing…

A: Income from the continuing operations are given before tax is  =   $230Add:Non deductible portion of…

Q: provide the answer please choice correct option

A: Step 1: Definition of Equity:The term equity is the remaining value of the owners after deducting…

Q: AAPL $165 Call 11/26 Bid Ask $0.66 x 5 $0.69 4 x Mark Last Trade IV $0.68 $0.71 27.47% Prev close…

A: Option contract gives its owner(Long call or long Put), the right but not the obligation to purchase…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.