Use the straight line method to find the annual depreciation for a car that costs $18,000, has an expected life of 4 years and has a salvage value of $2,000.
Q: An investor sells short 500 shares of stock at 10 per share and covers the short position one year…
A: Short selling can be defined as the process of selling off the shares in expectation that price of…
Q: Debts of $1,800 and $3,750 are due in one year and eighteen months from now, respectively.…
A: Amount due in 18 months is $3750 Amount due in one year is $1800 Replancement payment in 9 months is…
Q: E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period (LO 11-1, 11-2] Bartlett Car Wash…
A: Accounting rate of return(ARR) is the annual rate of return given by the project. ARR =Net…
Q: Income Statement Interest income on loans Interest income on securities Interest expense Noninterest…
A: Return on equity(ROE) measures the profitability of business in relation to equity invested. It can…
Q: In an effort to analyze Clockwork Company finances, Jim realized that he was missing the company's…
A: Return on equity = 10.5% Debt ratio = 35% Total Asset Turnover = 2 Cost of Goods Sold =…
Q: In a market with an unchanged current exchange rate where the interest parity condition holds, if…
A: Interest rate parity is a no-arbitrage condition in which investors are unconcerned about interest…
Q: On the Milan bourse, Fiat Chrysler stock recently traded at €13.82 per share. Fiat Chrysler also…
A: Given: Price of Fiat Chrysler = €13.82 1 share = 1 ADR Current spot rate $/€ = $1.12/EUR1.00
Q: Question 4 Given the following information, calculate the cost per servable pound. • Yield…
A: Given: Yield Percentage = 82.6%As Purchased (AP) Price = $12.79 To Find: The cost per servable…
Q: A loan of R250 000 is secured at an interest rate of 14% p.a. (cm) and will be amortized by equal…
A: Here, Loan amount = R250,000 Interest rate = 14% compounded monthly Term of loan = 20 years No. of…
Q: dnd can také önly öne. Your cost of capital is 10.7%. The cash flows for the two projects are as…
A: To find the IRR in excel, We will first put the values in excel spreadsheet as shown below NOTE:…
Q: 6 points Save 0 million and A's present value of net cash flows after tax is $245 million, Project B…
A: Projects Initial outlay (Million $) PV of net cash flows after tax (Million $) Net Present Value…
Q: a. What is an estimate of the WACC for your computer sales division? b. If your overall company…
A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…
Q: 4. Your eldest brother applied for a term life insurance. His contribution per year is P40 000 that…
A: “Since you have posted a question with multiple sub-parts, we will solve the three sub-parts (4,5,6)…
Q: The CAMELS rating includes* Asset size Competitiveness Earnings capability Management record…
A: CAMELS rating The authorities of bank supervisory uses the recognized international rating system so…
Q: o be well-capitalized, a Philippine bank must have a leverage ratio of at least ____________ percent…
A: In Philippines, the Bangko Sentral ng Pilipinas (BSP) is responsible for setting and implementing…
Q: Payback Period and NPV of Alternative Automobile Purchase Wendy Li decided to purchase a new Honda…
A: Payback Period: It is a measure of time expected to recover the expense of an underlying venture.…
Q: (a) Find the monthly payment for this loan. Monthly Payment: $ (b) Find the balance of the loan…
A: Monthly payment refers to the amount which is to be paid at regular intervals for a particular…
Q: A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average…
A: The Financial Ratio is mainly used by the investor for measuring the financial performance of the…
Q: The Garcia Insurance Company sold short S&P 500 stock index futures that specified an index of…
A: The income, costs, and expenses incurred during a certain period of time are summarized in a profit…
Q: After making the twenty-sixth payment on your car loan, you wanted to find out how much is left of…
A: Loan amount (PV) = $27000 Interest rate = 7.1% Monthly interest rate (r) = 7.1%/12 =…
Q: 3. Your company has purchased a large new truck-tractor for over-the-road use for $220,000. It's…
A: Depreciation = (Truck Cost - Salvage Value)/Useful life of Truck = (220000 - 10000)/10 = $21000 In…
Q: You want to buy a $168,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…
A: Cost of home = $168000 Down payment = 5% Loan period = 30 Years Interest rate = 6.95%
Q: Clark and Lana take a 30-year home mortgage of $125,000 at 7.6%, compounded monthly. They make their…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: QUESTION 1 - The Bond Market NAR a) A bond portfolio manager is contemplating the purchase of a…
A: Given, Bond's current price= $98.4321Bond's face value= 100 Bond's Coupon rate = 11%( annual) and…
Q: If a business firm has assets worth $170,000 and liabilities that total $40,000, what is the value…
A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…
Q: Calvin Johnson has a $4,500 debt balance on his Visa card that charges 13.3 percent APR compounded…
A: Here, Debt Amount of Credit Card is $4,500 APR is 13.3% Compounding Period (m) is Monthly i.e 12…
Q: When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of…
A: Present value (PV) = P12000 Future value (FV) = P20,415.23 Period (t) = 4 Year Number of compounding…
Q: You may use your financial calculator or excel for calculations but be sure to show your work (i.e.…
A: Part 1: Future Value = $400,000 Rate = 2% Time period = 18 months - 12 months = 6 months Present…
Q: 3. Avicorp has a $12.3 million debt issue outstanding, with a 6.1% coupon rate. The debt has…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: Given Bank A's Statement of Condition and Statement of Earnings, answer the next two questions: If…
A: Ratio is a tool which is used to measure the company’s growth and performance by establishing a…
Q: Garrett Boone, Flint Enterprises' vice president of operations, needs to replace an automatic lathe…
A: Here, To Find: Part a. Internal rate of return =? Part b. Purchase decision =? Part c. Net present…
Q: 17. Monetary policy refers to the strategies employed by a central bank with regard to the amount of…
A: Monetary policy Monetary policy is handled and managed by the central bank where the central bank…
Q: a. Determine the payback period of each project. b. Which project is acceptable based on payback…
A: Payback period = (Year of last negative cash flow+(Absolute value of last negative cash flow/Next…
Q: Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarter's…
A: Given, In this question we will have to find out the different costs at the different point of time…
Q: 5.940%
A: WACC= Cost of equity (ke) * weight of equity + Cost of debt(kd) * weight of debt.
Q: What is the Call plus Bond Option strategy?
A: Call option and bond It is a financial instrument that gives its holder the right to buy the…
Q: Desribe the international versions of bonds in brief. Focus clearly on the differences between them…
A: International bond A non-domestic entity issues an international bond in a country. In most cases,…
Q: f prepaid expense reflected in the disbursement section of the cash budget is the same amount that…
A: Step 1The cash disbursements category contains all cash paid for a specific reason. The cash excess…
Q: accumulate P24,500 at 9% compounded monthly? 16. How much monthly deposit must be made for 7 years…
A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…
Q: iquidation based valuation Tang mining is considering the acquisition of Zang Mining at a cash…
A: Net value of the assets is the remaining value left after all liabilities.
Q: The Fed's action did not affect the forecasted cash flows. Вy how much did the change in the…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: Determine the mode of the set of values. (Enter your answers as a comma-separated list. If there is…
A: Answer - Formula for Mode Calculation- Mode is the value that occurs with the greatest number of…
Q: A type of bar chart used to display the data from a frequency distribution is called a histogram
A: Given statement A type of bar chart used to display the data from a frequency distribution is…
Q: Explain the following terms Authorized Share Capital Issued Share Capital Bonus Shares
A: 1) Authorized Share Capital It refers to maximum number of shares a company is allowed to issue…
Q: rate of interest is typically the required rate of return on a three-month Philippine Treasury bill.
A: The risk free rate is a rate of return that is free from any kid of risk. This is the return an…
Q: If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would…
A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…
Q: Which of the following is a good choice for a manager interested in fostering the cooperation of two…
A: At times the managers of companies may have to seek cooperation between different departments of the…
Q: Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital…
A: IRR is the Internal rate of return. It is that rate at which the NPV of a project is zero ie: the…
Q: Determine which one of the three portfolios dominates another. Name the dominated portfolio and the…
A: Given: Particulars Green(G) Red( R ) Orange (O) Expected return 15% 13% 13% Risk 21% 17% 16%
Q: A new furniture set costs $ 2800. If you make a down payment of $ 300 and finance the rest at a rate…
A: Furniture cost = $2800 Down payment = $300 Loan amount (P) = $2800 - $300 = $2500 Monthly interest…
Question 12
Use the straight line method to find the annual
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Question15 Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000 and has a salvage value of $8,000 at the end of 6 years.QUESTION 5 A manufacturing machine has a first cost of $74 thousand with a $25 thousand salvage value after 11 years. Find the book value at year 7 using Linear Depreciation.Chapter 16: Depreciation Methods Dude & Sons have just purchased a machine for $325,000 and an additional $25,000 charge for installation onto a truck for mobility. The expected life is 30 years with a salvage value of 10% of the purchase price. For classical straight-line depreciation determine the first cost, salvage value, annual depreciation amounts and book value after 20 years?
- QUESTION 6 If an asset is book depreciated by the DDB (Double Declining Balance) method over a 5-year period, how long will it take to reach its salvage value if the estimated salvage is 24% of the first cost? The time taken to reach the estimated salvage value, (in years) Round off to the nearest three (3) decimal placesCHAPTER 14 – DEPRECIATION CLASSWORK Student Name: Date: 1) A Dutch petroleum company purchased a barge for $1,300,000. The estimated life in 20 years, at which time it will have a salvage value of $200,000. Find (a) The annual amount of depreciation using the straight-line method (b) The book value at the end of 5 years 2) A bottle-capping machine costs $88,000, has an estimated life of 8 years, and has a scrap value of $16,000. Use the straight-line method of depreciation to find (a) The annual rate of depreciation (b) The annual amount of depreciation (c) The book value at the end of the first year 3) The new computer equipment at Capital Curb and Concrete has a cost of $14,500, an estimated life of 8 years, and a scrap value of $2100. Find (a) the annual depreciation and (b) the book value at the end of 4 years using the straight- line method of depreciation.Question 9: A semi-truck with an estimated 250,000-mile life and a $34,000 salvage value, was purchased on January 1, 20X1, for $376,000. If the semi-truck was run for 62,000 miles in 20X1, 77,000 miles in 20X2, 56,000 miles in 20X3, and 71,000 miles in 20X4, how much would the "depreciation expense be in 20X3" using an activity-based method? Use a manual formula. Question 10: Assume the same details as Question 9, except that you want to find how much would the semi-truck's "depreciation expense be in 20X4." Use a manual formula. Hint: Read Question 9 again carefully to get to correct formula inputs.
- QUESTION 3 The cost of a new pickup truck is RM90,800. The scrap value after 10 years is RM4,200. Using the straight line method, calculate: a) The annual depreciation. b) The accumulated depreciation after 4 years. c) The book value after 4 years.Title 12.1 Metal Stampings, Inc., can purchase a new forging machine for $400,000. After 20 years of use,... Description 12.1 Metal Stampings, Inc., can purchase a new forging machine for $400,000. After 20 years of use, the forge should have a salvage value of $25,000. (a) Under MACRS, what depreciation is claimed in year 3? Under the straight-line (pre-1981) method, what depreciation is claimed in year 3? (Answer: a. $69,960; . $18,750)Asset Cost $56,000 Salvage value 1,000 Life 10 years Depreciation method Straight Line What is the depreciation in year 3? What would the depreciation in year 4 be if at the beginning of the year we think that the total asset life will be only 8 years instead of 10 years?
- Problem 6-10 Calculating Salvage Value An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,600,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (MACRS schedule) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage valueQuestion 5 What is the after-tax salvage value of a 3-year MACRS machine with the $10,000 purchase price if it is sold after 3 years at a salvage value of $500? The annual depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%, and the tax rate is 25%. $741 $560.25 $935.25 -$241 O-$60.25Question 5 A piece of machinery is purchased for $400,000. Accountants have decided to use a straight-line depreciation method with machine being fully depreciated after 10 years. Letting V equal the book value of the machine; a) Assuming that there is no salvage value, determine the function V=f (t). b) If the machine can be resold after 10 years for $25,000. Determine the function V=f (t). Question 6 A company purchases cars for use by its executives. The purchase cost this year is $30,000. The cars are kept for 3 years, after which they are expected to have a resale value of $8,000. If accountants use straight-line depreciation, determine the function which describes the book value V as a function of the age of the car t.