The Johnson Drum Company is planning to build a new factory. The purchase of the land, building the plant, and installation of equipment will take place over a 2-year period. The following are planned cash outflows:
Year Cash Outflow 0 $3,500,000 1 $4,750,000 2 $6,100,000
Johnson Drum's cost of capital is 14%, and its marginal tax rate is 35%. What is the NINV measured in present value terms today?

Answers

Answer 1

Answer:

$12,356,650

Explanation:

Calculation for What is the NINV measured in present value terms today

Year Cash Outflow PVIF PV of NINV

Year 0 $3,500,000 * 1.000 = $3,500,000

Year 1 $4,750,000* 0.877 =$ 4,165,750

Year2 $6,100,000* 0.769 =$4,690,900

Total NINV=$12,356,650

(3,500,000+4,165,750+=4,690,900)

Therefore the NINV measured in present value terms today will be $12,356,650


Related Questions

________________________ is revolutionizing how businesses operate factories or maintain equipment. Imagine an engine on an aircraft detecting an issue via sensors, self-diagnosing the issue, and sending a signal to both pilots and a command center to request a fix or even performing the fix on itself. Group of answer choices Internet of Things Business Process Modeling Tools Order Management Systems Enterprise Resource Planning Systems

Answers

Answer: Internet of Things.

Explanation:

Internet of Things relates to how physical objects are now being equipped with software, sensors and every other forms of technologies so that it will aid the sharing and communication of data with other devices over the internet.

Therefore, internet of things is revolutionizing how businesses operate factories or maintain equipment.

A company's managers have decided to issue bonds to raise financial capital. What is the first step in this process?
A. Selling the bonds to investors
B. Contacting a financial advisory firm
C. Filing documents with the SEC
D. Determining the firm's creditworthiness
E. Preparing documentation

Answers

Answer: Contacting a financial advisory firm

Explanation:

Since the company's managers have decided to issue bonds to raise financial capital, the first step in this process is for them to contact a financial advisory firm.

The financial advisory firm would help in giving advice and also consultation regarding the finance of the company and provide them with strategies that can help the company reduce costs and achieve their financial goals.

In 2020, Sunland Corporation incurred research and development costs as follows: Materials and equipment $116000 Personnel 136000 Indirect costs 176000 $428000 These costs relate to a product that will be marketed in 2021. It is estimated that these costs will be recouped by December 31, 2023. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2020

Answers

Answer:

$428,000

Explanation:

The amount of research and development costs that should be expensed in 2020  is as calculated below

The amount of research and development costs = Materials and equipment cost + Personnel cost + Indirect costs

The amount of research and development costs = $116,000 + $136,000 + $176,000

The amount of research and development costs = $428,000

In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this change impact GDP in the economy?

Answers

Answer:

Many people's wealth is held in stocks and as the price of stocks collapsed, they lost wealth.

Imagine that this happened to you. One day you are rich and that affects your spending habits. In a matter of few days or weeks, you lose a large portion of your wealth. So now, you are less rich or even poor. So your spending habits will be altered, i.e. you will spend less.

If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.

What type of mortgage requires fixed monthly interest payments for 3 to 5 years whereupon full payment of the mortgage principal is due?

Answers

Answer:

Balloon Payment Mortgages

Explanation:

Mortgages are simply loans to persons or businesses to get/purchase homes, land, or other real property.

A balloon payment mortgage is a a type of mortgage known for its ability to not fully amortize over the term of the note, thereby leaving a balance due at maturity. Its last or final payment is called a balloon payment because of its notable large size. This type of mortgages are more more common in commercial real estate than in residential real estate. the above statement of it that it require fixed monthly interest payments for 3 to 5 years whereupon full payment of the mortgage principal is due is correct.

A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at a $75.25 premium from par value. The current yield on this bond is _________.

a. 6%
b. 6.49%
c. 6.73%
d. 7%

Answers

Answer:

b. 6.49%

Explanation:

Calculation for The current yield on this bond

First step is to calculate the Current price

Current price = $1,000 - 75.25

Current price = $924.75

Now let calculate the Current yield using this formula

Current yield =Coupon bond interest/Current price

Let plug in the formula

Current yield = $60/$924.75

Current yield = 6.49%

Therefore the current yield on this bond is 6.49%

In planning for your retirement, you have decided that you would like to be able to withdraw $60,000 per year for a 10 year period. The first withdrawal will occur 20 years from today.
a. What amount must you invest today if your return is 10% per year?
b. What amount must you invest today if your return is 15% per year?

Answers

Answer:

a. $66,309

b. $24, 333

Explanation:

In both scenarios, the Cash Flows are uneven. thus we need to be careful the way we use the Time Value of Money. What we will be looking for is the Net Present Value - the Initial cost of the Investment.

Step 1

The summary of cash flows for this project can be shown as follows :

Year 0 = ? (to be calculated)

Year 1 to Year 19 = 0

Year 20 to Year 30 = $60,000

Step 2

Using the CFj Function of the Financial calculator, we can then calculate the Net Present Value as :

Part a

$0                       CFj

19                          Nj

$60,000             CFj

10                          Nj

10 %                   I/YR

Shift NPV = $66,309

Part b

$0                       CFj

19                          Nj

$60,000             CFj

10                          Nj

15 %                   I/YR

Shift NPV = $24,333

You do a search on your mobile phone for "clothing stores near me". Your top result is a search ad for a Banana Republic (clothing store) that is two blocks away. Your friend (standing next to you) does the same search but does not receive that ad. You are a frequent Banana Republic shopper and your friend is not. This ad targeting is an example of location-based targeting combined with:_____.A. temporal targetingB. behavioral targetingC. weather-based targetingD. targeting based on social contextE. each is correct

Answers

Answer:

B. behavioral targeting

Explanation:

According to the information in the question above, it can be said that this ad targeting is based on location combined with behavior.

Behavioral targeting is based on targeting your consumers based on past behaviors, that is, as you are a frequent consumer of Banana Republic, it is correct to state that you have had previous buying behavior, so the ad appeared for types of people like you and not to your friend, who despite his location, is not a frequent consumer of Banana Republic, so he didn’t receive the ad because he hadn’t previously behaved.

This ad targeting is an example of location-based targeting combined with behavioral targeting.

Behavioral targeting is simply known as a marketing method that often uses web user information to make advertising campaigns strong.

It entails putting together web searches, purchase histories, frequently visited websites and other information to create a full user profile, showing what your customers wants, avoids and purchases.

It is marketing method that uses web user information.

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A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. If the risk free rate is 3%, and the current stock price is $45, what should the corresponding put be worth?
A) $12.74.
B) $10.48.
C) $5.00.
D) $9.00.
E) $8.30.

Answers

Answer:

$9.90

Explanation:

Using Put Call Parity Equation:

C + X/(1 + r)^t + S + P

Call price + PV of exercise price = Spot price + Put price

4.74 + 50/(1.03)^0.30 = 45 + P

4.74 + 50/1.00891 = 45 + P

4.74 + 49.5584 = 45 + P

P = 4.74 + 49.5584 - 45

P = 9.2984

P = $9.90

Thus, the Price of Put Option with $50 exercise price = $9.90

When long-term interest rates are higher than short-term rates, as they were in 2010, it:_________.
a. implies that inflation will fall.
b. has no implication for short-term interest rates.
c. implies that short-term interest rates are expected to rise.
d. implies that short-term interest rates are expected to fall.

Answers

Answer: c. implies that short-term interest rates are expected to rise.

Explanation:

If long term rates are higher than short term rates, people will expect short term rates to rise so that they may eventually reach the long term rates as time goes on.

This expectation will lead to a rise in short term rates as people take actions that will try to capitalize on the rates rising.

The following data are available relating to the performance of Long Horn Stock Fund and the market portfolio:
Long Horn Market Portfolio
Average return 19 % 12 %
Standard deviations of returns 35 % 15 %
Beta 1.5 1.0
Residual standard deviation 3.0 % 0.0 %
The risk-free return during the sample period was 6%.
What is the Treynor measure of performance evaluation for Long Horn Stock Fund?
a. 0.0133
b. 0.04
c. 0.0867
d. 0.3143
e. 0.3714

Answers

Answer: c. 0.0867

Explanation:

Treynor measure for Long Horn Stock Fund;

= (Average return - Risk-free return) / Beta

= (19% - 6%) / 1.5

= 0.08666667

= 0.0867

Q2. Which of the following is not covered under Marine Insurance?
a Theft insurance
b. Marine insurance
c. Life insurance
d. Fire insurance​

Answers

Answer:

Marine Insurance? lol kinda make no sense

Assume a company has two divisions, A and B. The company’s overall sales, overall contribution margin ratio, common fixed expenses, and net operating income are $500,000, 48%, $50,000, and $10,000, respectively. Division A has a contribution margin of $180,000. If Division B has traceable fixed expenses of $80,000, then what is Division A’s segment margin? Multiple Choice $80,000 $40,000 $20,000 $60,000

Answers

Answer:

$60,000

Explanation:

total sales A + B = $500,000

variable expenses = $260,000

combined contribution margin = $240,000

contribution margin A = $180,000

contribution margin B = $60,000

combined segment margins = $60,000 (= -$20,000 + $80,000)

segment margin B = -$20,000

segment margin A = $80,000

common fixed expenses = $50,000

net income = $10,000

The margin available after a segment has covered all of its costs is known as segment margin. The segment profit margin is $60,000 per segment. As a result, option (d) or (iv) is the proper response.

How do you compute segment margin?

[tex]\text{total sales A + B} = $500,000\\\text{Variable expenses} = $260,000\\\text{Combined contribution margin} = $240,000\\\text{Contribution margin A} = $180,000\\\text{contribution margin B} = $60,000\\\text{combined segment margins} = $60,000 (= -$20,000 + $80,000)\\\text{segment margin B} = -$20,000\\\text{segment margin A} = $80,000\\\text{common fixed expenses} = $50,000\\\text{net income}= $10,000[/tex]

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If a person buys goods from a minor, he/she holds only voidable title to
those goods. *
True
False

Answers

Answer:

True

Explanation:

The three main methods that can be used to achieve the efficient use of a common resource are:___________.
A. property rights, production quotas, and ITQs
B. taxes, production quotas, and ITQs
C. property rights, marketable permits, and vouchers
D. property rights, production quotas, and marketable permits

Answers

Answer:

Option A:property rights, production quotas, and ITQs

Explanation:

A Common Resources is known simply as a resource for which rights are held in common by a group of individuals who has no exclusive ownership right. With common resources, property rights are not well-defined and are non-exclusive. In a common resource, an individual has the right to use the resource, but not to change its form or transfer it to other individuals. The policies that helps to improve efficiency include: production quotas, individual transferable quotas and property right.

Production quotas is simply an upper limit to the quantity of a good that may be produced legally.

An individual transferable quota is a production limit that is given to an individual who is free to transfer the quota to another person.

By the assignment of property rights, common property becomes private property.

The shape of a normal Treasury yield curve can be characterized as: (a) inverted throughout the maturity spectrum; (b) inverted over a portion of the maturity spectrum, such as between 2 and 7 years; (c) monotonically upward sloping; (d) unaffected by the relative supply and demand for Treasury securities.

Answers

Answer:

(c) monotonically upward sloping

Explanation:

The shape of a normal Treasury yield curve can be characterized as monotonically upward sloping curve. This is because a normal treasury yield curve have lower yields for short term, but gradually increases as the maturity period of the bonds increases. Thus, giving the yield curve an upward sloping shape.

Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 for office supplies. There is $75 of cash remaining in the fund after these disbursements. The journal entry to replenish the petty cash fund includes

Answers

Answer:

the journal entry to record petty cash expenses should be:

Dr Delivery expenses 100

Dr Postage expenses 40

Dr Office supplies expenses 35

    Cr Cash 175

Explanation:

When money is missing in a petty cash fund, e.g. imagine it was $2 short, you can use the cash short and over account which is used to balance minor differences.  

Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials totaling $86000. How much is direct labor cost

Answers

Answer:

$296,000

Explanation:

Calculation for How much is direct labor cost

Using this formula

Direct labor cost=Total manufacturing costs-Manufacturing overhead totaling-Direct materials totaling

Let plug in the formula

Direct labor cost=$450,000 - $68,000 - $86,000

Direct labor cost=$296,000

Therefore the direct labor cost will be $296,000

Southport Industries has current assets of $900,000 and a current ratio is 2.50. Assume that the company prepays rent for 9 months in the amount of $40,000. The current ratio after this transaction is closest to:

Answers

Answer:

2.50

Explanation:

Based on the information given we were told that the current ratio is 2.50 which means that the current ratio after this transaction is closest to: 2.50 reason been that based on the information given Increase in prepaid rent lead to decreae in cash which is why we won't have any change in the current ratio of 2.50

Therefore the current ratio after this transaction is closest to: 2.50

Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $77,700 Actual machine hours worked: 18,800 Standard variable overhead cost per machine hour: $4.50 If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable-overhead spending variance is:

Answers

Answer:

$37,600 favorable

Explanation:

Variable overhead spending variance can be computed as;

= (Actual hours worked × Actual variable overhead rate) - ( Actual hours worked - Standard variable overhead rate)

= ( 18,800 hours × $77,700/12,000) - (18,800 hours × $4.5)

= [(18,800 × $6.5) - (18,800 × $4.5)]

= $122,200 - $84,600

= $37,600 favorable

As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the sameIf the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth)Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Answers

Answer:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) Multiplier is 3.30.

(c) Total impact on spending is $3,300.

Explanation:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the same.

In economics, the higher the MPC, the higher the spending multiplier.

Therefore, as the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) If the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth).

This can be calculated as follows:

Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.70) = 1 / 0.30 = 3.33333333333333

Rounding to the nearest tenth, we have:

Multiplier = 3.30

(c) Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Total impact on spending = Increase in government spending * Multiplier = $1,000 * 3.30 = $3,300

The spending multiplier rises as the marginal propensity to consume (MPC) rises. 3.30 is the multiplier. The total financial impact is $3,300.

What is the total impact on spending?

(a) The spending multiplier grows, declines, or remains constant when the marginal propensity to consume (MPC) increases.

The higher the MPC, the higher the spending multiplier in economics.

As a result, the spending multiplier rises as the marginal propensity to consume (MPC) rises.

(b) If the marginal propensity to consume is 0.70, the multiplier is: assuming no taxes or imports (Note: round to the nearest tenth).

Computation:

[tex]\text{Multiplier} = 1 / (1 - MPC) \\= 1 / (1 - 0.70) \\= 1 / 0.30 \\= 3.33333333333333[/tex]

If we round to the nearest tenth, we get: a 3.30 multiplier

(c) Given the multiplier you computed, what is the total impact on spending when government spending is increased by $1,000?

[tex]\text{Total impact on spending = Increase in government spending} \text{ x } \text{Multiplier}\\ = $1,000 \text { x } 3.30 = $3,300[/tex]

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Besides knowing the amount of sales, what other
information is required to calculate a return on
sales (ROS)?

Answers

Answer:

selling price, variable cost, fix cost

Explanation:

________ measures the percentage of individuals in a defined target market who are exposed to an ad during a specified time period.

Answers

Answer:

Reach

Explanation:

Marketing reach is a metric used by sellers to estimate the portion of the target market that have been exposed to their adverts.

This is an important metric that shows how effective marketing efforts are, it also indicates wether more effort should be put into advertising to increase the reach.

Reach is calculated by dividing impressions by frequency.

Impression is the total number of times an advert is displayed while frequency is the number of times it is viewed.

On March 31, 2021, Top Notch Goods committed to a plan to sell machinery equipment. The machinery equipment was available for immediate sale, and an active plan to locate a buyer was initiated. The machinery equipment had been purchased on January 1, 2019, for $260,000. The machinery equipment had an estimated six-year service life and residual value of $20,000. The machinery equipment was being depreciated using the straight-line method. Top Notch Good's fiscal year ends on December 31.Calculate the equipment’s book value as of March 31, 2021By December 31, 2021, the machinery equipment has not been sold, but management expects that it will be sold in 2022 for $150,000. For what amount is the machinery equipment reported in the December 31, 2021, balance sheet?

Answers

Answer:

$150,000

Explanation:

This machine is to be classified as an asset held for sale. The assets held for sake are carried on the Statement of Financial Statement at the amount lower of Fair Market Value and the Carrying Amount.

You want to have $500,000 in today's (real) dollars when you retire in 40 years. The expected inflation rate is 1.1% and the nominal return on your investments is 6.5%. How much money do you have to save now if you can't make any additional deposits?

Answers

Answer:

Initial deposit= $62,378.07

Explanation:

First, we need to calculate the nominal value of $500,000 in 40 years:

Future Value= PV*(1+r)^n

r= inflation rate

FV= 500,000*(1.011^40)

FV= $774,490.74

Now, the initial deposit (PV) to be made in the present:

PV= FV/(1+i)^n

i= interest rate

PV= 774,490.74 / (1.065^40)

PV= $62,378.07

A stock is currently selling for $79 per share. A call option with an exercise price of $83 sells for $3.95 and expires in three months. If the risk-free rate of interest is 2.8 percent per year, compounded continuously, what is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer: $7.37

Explanation:

The price of a put option with the same exercise price would be calculated as:

C + Xe^-rt = P + S

It should be noted that in the formula above,

P = Put option price

C = price of call option

S = stock price

X = exercise price

r = interest rate

t = time

We then slot in the values which will be:

= 3.95 + 83e^-2.8% × 3/12 = P + 79

P = 3.95 + 83e^-2.8% × 3/12 - 79

P = 3.95 + 82.42 -79

= $7.37

Which employee role is directly accountable to ensure that employees are implementing security policies consistently

Answers

Answer: Information Technology

Explanation:

The employee role is directly accountable to ensure that employees are implementing security policies consistently is the information technology staff.

Such individual implements and also maintains security policies, procedures, and standards. The Information Technology staff gives the necessary mechanisms that will be required to enhance the security program.

Does anyone know how to slap babies correctly?

Answers

Answer:

no don't do that.

Explanation:

Answer:

Yes. You get in the car, buckle up, ad drive to the police station and turn yourself in for child abuse :)

Explanation:

In what positive and negative ways has the Internet changed the conduct and coordination of global business?

Answers

Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft

Explanation:

The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways

Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.

Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.

Why is it important for legal service workers to be fair and ethical?
(the blue highlighted one)​

Answers

It is important for legal service workers to be fair and ethical because legal responsibilities include the duty of care and compliance with laws and regulations regulating your practice area. Ethical responsibilities include ensuring that the ethical codes and standards of conduct that relate to community service work are recognized and applicable to you. Ethics acts as a guide to the everyday moral life and encourages us to determine if our actions can be justified. Ethics refers to the sense of culture in the best way to live our everyday lives. It does this by setting laws, beliefs, and values on which our actions can be founded. Without ethics and legal responsibility from legal service workers, the morale of the company would be terrible and it would not hold anyone accountable for their actions.
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