Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 installing it. What is the accumulated depreciation on this machine at the end of three years?
Q: A house costs 150,000. If the down payment is 20% of the price and the rest is financed with a…
A: First we need to determine the loan amount. This can be determined with the formula below:
Q: A large bank is quoting the following spot exchange rates for number of YEN per USD, number of THB…
A: To check if there is an arbitrage opportunity we need to determine the Yen/THB exchange rate using…
Q: Nikolay wants to make annual contributions to his RRSP for the next 30 years. He will increase each…
A: The future value of a growing annuity is the accumulated value of a series of cash flows that…
Q: Angina Inc has 5 million shares outstanding The firm is considering issuing an additional 1 million…
A: Proceeds from stock sale = Number of shares issued * Offer price per share.Net proceeds from stock…
Q: Gross Profit Margin Operating Margin Net Profit Margin hich of the following statements is true?…
A: Gross Profit Margin: Measures the percentage of profit a company makes after subtracting the cost of…
Q: How long will it take for $570 to grow to $2,700 at the following interest rates? 5.7 9.7 17.7
A: When we make an investment or deposit an amount today it grows with passage of time. This is because…
Q: ALFA’s price is currently ¥8,000. At the end of one month when its options expire, the price is…
A: A put option is a financial contract that gives the owner the right, but not the obligation, to sell…
Q: Boardman Gases and Chemicals is a supplier of highly purified gases to semiconductor manufacturers.…
A: NPV stands for "Net Present Value." It is a financial metric used to evaluate the profitability of…
Q: he lottery commission is offering the winner of a recent jackpot a payout of 15 yearly payments…
A: 1.Present value of annuity.PV = A*wherePV = present value of annuityA = periodic paymentsr =…
Q: For a quoted annual interest rate of 5% with daily compounding, find the effective (i) annual rate,…
A: Present value refers to the current value of the annuity that is determined by discounting the cash…
Q: Question a .Nervous Rollo puts $10,000 per year into a savings account from ages 25 to 60 earning…
A: The profit that an investor reaps after accounting for the inflation effect is known as the real…
Q: A coupon bond that pays semiannual Interest is reported in the Wall Street Journal as having an ask…
A: A bond is a financial instrument issued in the debt market by large business firms and governments…
Q: If a bank compounds savings accounts monthly, the effective annual rate is greater than the nominal…
A: Nominal rate is the rate mentioned in the loan term or loan agreement. Hence nominal rate is the…
Q: The Maximus Corporation is considering a new investment, which would be financed from debt. Maximus…
A: Face Value = fv = $1000Price of Bond = pv = $920Time = nper = 13 YearsCoupon Rate = 10%Tax Rate = t…
Q: financial advisor evaluates four stocks for inclusion in an investor's portfolio. A orrelation…
A: The concept at play here is portfolio diversification and the use of correlation to manage risk in…
Q: ou are bullish on Telecom stock. The current market price is $250 per share, and you have $22,000 of…
A: Rate of Return =
Q: Oriole corporation has current liabilities of $432,000, a quick ratio of 1.6, inventory turnover of…
A: Current ratio (CR) is the ratio between current asset(CA) and current liabilities(CL).CR =…
Q: A car loan is taken for $20,000 to be paid back in 6 years, with monthly payments of $304. What…
A: We need to use RATE function in excel to calculate annual rate to be charged on loan. The formula is…
Q: How will learning about Trading Internationally be most interesting and why?
A: International trade is the exchange of goods and services between countries, and it plays a crucial…
Q: Daily Enterprises is purchasing a $10.3 million machine. It will cost $46,000 to transport and…
A: free cash flow for year 0 = Purchase price + Transport and Installation costs. free cash flow per…
Q: 2) Calculate the envelope set (frontier) for the following four assets and show that the individual…
A: In this question we will be calculating the Envelope Set for the four assets and plotting the…
Q: We know the following expected returns for stocks A and B, given the different states of the…
A: 1. Expected return is computed by following formula-Expected return = WhereRi = return of stockPi =…
Q: Which of the Stocks in Elaine's portfolio are most likely growth stocks and why? O Stock D because…
A: Growth stock are those stocks which have very high growth potential in the future and are valued…
Q: classic car was for sale with a current asking price of $45,000. If a return of 8.5%, compounded…
A: Prices tends to increase with time due to interest and inflation due to the compounding of the that…
Q: The Fleming Manufacturing Company is considering a new investment. Financial projections for the…
A: The net income is calculated by
Q: a) Calculate the breakeven number of books to be sold. b) Calculate the estimated profit for the…
A: We are going to complete this question using the formula below:
Q: What is the concept of future value within the context of the larger overall concept of the time…
A: The concept of future value is a fundamental component of the broader idea known as the time value…
Q: 2. Corporation VB was formed in 2023. Immediately prior to year-end, VB is considering a deductible…
A: The net present value is the technique used in capital budgeting to calculate the current value of a…
Q: A sum of $10,000 now (time 0) is equivalent to the following cash flow diagram. What is the value of…
A: The PV of an investment refers to the combined value of the cash flows discounted to the present at…
Q: Assume that a student graduates from college with $20,000 in student loans. If the interest rate is…
A: Given:PV = $20,000 r = 4.80% / 12 = 0.004 or 0.40% n = 15 years * 12 months/year = 180 payments
Q: Verizon offers to sell cellular phones listing for $100.54 with a chain discount of 15/10/5.…
A: List price = $100.54Discount = 15/10/5Units purchased = 7The net price of purchasing 7 phones from…
Q: Identify the items that appear on an Income Statement. cash balance revenues product purchases cost…
A: Income statement is a financial statement that indicates the financial performance of company for a…
Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…
A: The liquidity premium theory refers to the fact that the issuing company of a security that does not…
Q: T-Bill Yields 2009. The interest yields on U.S. Treasury securities in early 2009 fell to very low…
A: The simple yield for 3-month t-Bill is The simple yield for 6-month t-Bill is
Q: You have a loan outstanding. It requires making seven annual payments of $4,000 each at the end of…
A: The future value of the annuity is the sum of a series of payments received at a fixed time in the…
Q: The XYZ Block Company purchased a new office computer and other depreciable computer hardware for…
A: Present value of annuity PV = A * wherePV = present valueA = periodic paymentsr = interest raten =…
Q: Use Bird Industry's summary financial statements to answer the following questions. Bird Industries,…
A: The common stock dividends are paid out of the current year profits or accumulated profits of the…
Q: Calculate the number of shares purchased with a $5,000 investment in a no load mutual fund with a…
A: Shares, also known as equity or stock, represent ownership in a company. An individual becomes a…
Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…
A: Operating Cashflow: Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working…
Q: A man has a loan of 15,000 for 5 years with level quarterly (end-of-quarter) payments at a nominal…
A: Loan Amount = 15000Loan Period = 5 YearsLoan Period in Quarter = 5 * 4 = 20 QuarterInterest Rate =…
Q: Company W is a quoted company. Company W 's Board has offered shareholders a scrip dividend as an…
A: Company W, a publicly traded company, has presented its shareholders with a choice between receiving…
Q: If the following quotes are on September 15, 2012, what was the coupon rate for the JD.VR bonds with…
A: Coupons with reference to a bond indicate the sequential cash flow with timed intervals that are…
Q: One year ago, Regina purchased $1,050 worth of Elite Electrician’s common stock for $42 per share.…
A: We make investments in stocks with the expectation to earn returns from our investment. The return…
Q: A bond's credit rating provides a guide to its price. In December 2020, Aaa bonds yielded 5.4%, and…
A: Aaa Bond Yield = ra = 5.4%Bbb Bond Yield = rb = 6.4%Coupon rate = 10%Time = t = 5 yearsFace Value =…
Q: You have a balance of 15,000 on a credit card that charges an APR of 20% (compounded monthly). You…
A: Calculate the number of months to pay off the balance with the original monthly payment.Calculate…
Q: How much money would be accumulated 18 years from now from deposits of $15,000 per year for five…
A: When we deposit a sum of money the sum grows in amount with passage of time. This is known as…
Q: Assume that an investor buys 100 shares of stock at $37 per share, putting up a 65% margin. a. What…
A: A margin account refers to a brokerage account where securities are bought by paying only a portion…
Q: A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% APR compounded…
A: Loan or mortgage amortization refers to the repayment of loan amount. In the process of amortization…
Q: For 2015, Walmart and Target had the following information (all values are in millions of dollars).…
A: Ratio analysis is one of the important techniques of management accounting.. Accounts receivable…
Q: 15.Firm UUU earns $0.1 in profit on every $1 of sales, has $1.2 in assets for every $1 of sales and…
A: Internal growth is the growth that can obtained through internal earnings that is retained earnings…
Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000 installing it. What is the accumulated
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.Don’s Workshop acquired a machine two years ago for $40,000. The depreciation schedule is listed below. Don wants to sell it now to buy a new model of the machine. Don has been offered $20,000 for his old machine. What is the after-tax salvage value? (Assume the tax rate is 20%) MACRS 5-year property $18,944.00 $18,904.80 $19,909.09 $19,840.00 $19,358.88an engineer bought a piece of equipment for 500000. he spent amount of 20000 for installation and other expenses. the salvage value is 10% of the initial first cost wit a life for 12 years. determine the total depreciation after 5 years using the straight line method
- X ltd. bought a machine of cost $200,000, having a useful life of 10 years. The machine has a scrap value of $5,000. After 2 years, X Ltd. revalued the machine at $170,000, having the same remaining life and scrap value. Calculate the depreciation in third year. Your answerA man bought a machine for $ 984,017 six years ago. It has a salvage value of $ 36,879 four years from now. He sold it now for $ 42,216. What is the sunk cost or the value of the machine that the man lost if the depreciation method used is a Sum of the Years' Digit method?John Morse Corporation buys a van for $16,000. The estimated life of the van is four years. The residual value of the van is $4,000. After two years, the van is sold for $8,000. What was the difference between the book value and the amount received from selling the van if John used the straight-line method of depreciation?
- Suds-n-Dogs just purchased new automated bun-handling equipment for $12,000. The salvage value of the equipment is anticipated to be $1200 at the end of its 5-year life. Use MACRS to determine the depreciation schedule using a three-year property class.Hampton Inc. purchased a machine to use in its business. The machine is estimated to have an economic life of 10 (ten) years before it becomes obsolete. The company expects to use the machine for 4 (four) years before it sells the machine to another company. Hampton uses the straight-line depreciation method. Question: How many years should Hampton depreciate this asset over? (4,7,10, or 14)Company D recently purchased an equipment that costs $50,000, has a life of 4 years and a salvage value of $10,000. The production output of this equipment is 1800 on the first year, 2200 on the second year, 3000 units on the third year, and 4000 units on the fourth year. What is the accumulated depreciation charge on the second year?
- An engineer bought equipment for P500,000. He spent an additional amount of P30,000 for installment and other expenses. The estimated useful life of the equipment is 10 years. The salvage value x% of the first cost. Using straight line method of depreciation, the book value at the end of 5 years will be P291,500. What is the value of x?Larry's car is worth $18,000 after 5 years. When the car was new, it sold for $24,000. What is the depreciation rate?Mr Roque owns an equipment that costs P90,000. After 8 years, it will have an estimated salvage value of P18,000. Compute the total depreciation for the first two years using sum of the years digit. O P35,000 O P40,000 P30,000 O P45,000 O P50,000 Other: Mr Roque owns an equipment that costs P90,000. After 8 years, It will have an estimated salvage value of P18,000. Compute the book value at the end of five years using sum of the years digit method. P50,000 P40,000 P30,000 OP55,000 P35,000