12 You will bid to supply 3 jets per year for each of the next three years to the Navy. To get set up, you will need $60 million in equipment, to be depreciated straight‐line to zero over three years, with no salvage value. Total fixed costs per year are $10 million, and variable costs are $12 million per jet. If the maximum you can offer is $22 million each, what should you receive in salvage value before taxes in year 3 for the equipment?

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A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: On the basis of these data, the real risk-free rate of return is   3% 2% 0% 1%

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Q: Hall Service Corporation is considering a project that will require $39,000 in net working capital…

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Q: What is the variance of returns for Security ABC

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Q: XYZ just went public. As a growing firm, it is not expected to pay a dividend for the first five…

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Q: How one can identify the respective Loss Exposures in Risk

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Q: the correct answer. 1. Which of the following is not among the risks that need to be evaluated in…

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Q: ABC Co. believes that XYZ Corporation’s stock price is going to decline from its current level of…

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Q: You are considering making a movie. The movie is expected to cost $10.5 million up front and take a…

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Q: ABC Corporation has a developing market for its product. Good financial risk management will allow…

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Q: Kristine bought a smartphone worth Php72,000 and made a downpayment of Php15,000. The remaining…

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Q: (TRUE/FALSE) You own 200 shares of Nestle and 100 shares of Quaker.  Your portfolio return is…

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Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…

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Q: 12)) The price of $6050 face value commercial paper is $5900. If the annualized investment rate is…

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Q: An amount of $6,880 is deposited into an account earning 3% interest compounded quarterly. How much…

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Q: Andie needs to borrow $6,000 to buy a car. One dealer offers her a monthly payment of $193.60 on a…

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Q: What is the annualized investment rate% on a Treasury bill that you purchase for $8000 that will…

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Q: Calculate the nominal and real return as well as the nominal and real risk premiums for the…

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Q: A bond that pays interest semiannually has a price of $965.18 and a semiannual coupon payment of…

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Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…

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Q: 3. A project requires an initial investment of $1,000,000 and generates annual income of $300,000…

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Q: 4. In a CDS the accrual payment is a payment made by CDS to CDS and occurs when the defaults

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Q: Year 2016 Plant, Property, Equipment (Gross) Accumulated depreciation reported in 2020 Annual…

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Q: Art purchase a house and lot worth ₱1,410,000, he made a down payment of ₱150, 000 and the remaining…

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Q: A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate…

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A: Year Cash flow 0 -12200 1 2810 2 2810 3 2810 4 0 5 0 6 5550 7 5550

Q: The Tech company. Inc. is currently making windfall profits from the sales of financial programming…

A: Here,

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A: FIinancial goals means managing one's own money as well as saving and investing. It doesn't include…

Q: Compute the present value of a perpetual investment that would pay P25,000 every year if the…

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Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

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Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…

A:

Q: A company has a choice of three investment schemes. Option I gives a sure $25,000 return on…

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Q: What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.