1. f you owe $35,000 payable at the end of eight years, what amount should your creditor accept in payment immediately i...
1.
f you owe $35,000 payable at the end of eight years, what amount
should your creditor accept in payment immediately if she could
earn 13 percent on her money? Use Appendix B for an approximate
answer, but calculate your final answer using the formula and
financial calculator methods. (Do not round intermediate
calculations. Round your final answer to 2 decimal places.)
Present Value-
Q2.
Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in a 40 percent tax bracket.
a. Compute its cash flow.
Cash flow-
b. Assume it has $200,000 in depreciation.
Recompute its cash flow.
Cash flow-
c. How large a cash flow benefit did the
depreciation provide?
Benefit in cash flow-
Q2.
Which of the following does a bond’s rating NOT depend on?
The corporation's debt-to-equity ratio
The corporation's size
The ability of the firm to make interest payments
The coupon rate on the bond
Homework Answers
Add Answer to:
1. f you owe $35,000 payable at the end of eight years, what amount should your creditor accept in payment immediately i...
2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on...
2018 Individual Tax Rates
Single Individuals
If Your Taxable Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $9,525
$0
10.0
%
10.0
%
$9,525 - $38,700
952.50
12.0
11.5
$38,700 - $82,500
4,453.50
22.0
17.1
$82,500 - $157,500
14,089.50
24.0
20.4
$157,500 - $200,000
32,089.50
32.0
22.8
$200,000 - $500,000
45,689.50
35.0
30.1
Over $500,000
150,689.50...
Compare the present value of the incremental benefits (j) to the net cost of the new equipment (e). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.)
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $78,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $34,800. A new piece of equipment will cost $230,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your final answer using...
Determine the net present value. (Use the WACC from part c rounded to 2 decimal places as a percent as the cost of capital (e.g., 12.34%). Do not round any other intermediate calculations. Round your answer to 2 decimal places.)
DataPoint Engineering is considering the purchase of a new piece of equipment for $210,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $110,000 in nondepreciable working capital. $27,000 of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in the following table. Use Table 12–11, Table 12–12. Use Appendix B for an approximate...
Questions a-e are already complete and correct. Please answer parts f, g, h, i, j1-2, and...
Questions a-e are already complete and correct. Please answer
parts f, g, h, i, j1-2, and k1.
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $64,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $27,800. A new piece of equipment will cost $154,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for...
all answers please! You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance...
all answers please!
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000 Calculate Goodman Bees' net working capital (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Networking capital Casello Mowing & Landscaping's year-end 2018...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $82,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $82,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $36,800. A new piece of equipment will cost $250,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $72,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $72,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $31,800. A new piece of equipment will cost $200,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $56,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $56,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $23,800. A new piece of equipment will cost $146,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your...
Would you please resolve questions H, I. J-1. J-2, K-1, and K-2? Rest of the answers...
Would you please resolve questions H, I. J-1. J-2, K-1, and K-2?
Rest of the answers are already resolved.
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $96,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $43,800. A new piece of equipment will cost $210,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost...
Please evaluate below questions. d-1. Determine the net present value. (Use the WACC from part c...
Please evaluate below questions. d-1. Determine the net present
value. (Use the WACC from part c rounded to 2 decimal places as a
percent as the cost of capital (e.g., 12.34%). Do not round any
other intermediate calculations. Round your answer to 2 decimal
places.)
1/(1+0.1306)^1 = 0.88448611356
1/(1+0.1306)^2 = 0.78231568509
1/(1+0.1306)^3 = 0.69194735989
1/(1+0.1306)^4 = 0.61201783114
1/(1+0.1306)^5 = 0.5413212729
1/(1+0.1306)^6 = 0.47879114886
170000 * 0.88448611356 = 150362.64
155300 * 0.78231568509 = 121493.63
122880 * 0.69194735989 = 85026.49
105662.5 *...
2018 Individual Tax Rates
Single Individuals
If Your Taxable Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $9,525
$0
10.0
%
10.0
%
$9,525 - $38,700
952.50
12.0
11.5
$38,700 - $82,500
4,453.50
22.0
17.1
$82,500 - $157,500
14,089.50
24.0
20.4
$157,500 - $200,000
32,089.50
32.0
22.8
$200,000 - $500,000
45,689.50
35.0
30.1
Over $500,000
150,689.50...
Questions a-e are already complete and correct. Please answer
parts f, g, h, i, j1-2, and k1.
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $64,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $27,800. A new piece of equipment will cost $154,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for...
all answers please!
You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000 Calculate Goodman Bees' net working capital (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Networking capital Casello Mowing & Landscaping's year-end 2018...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $56,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $23,800. A new piece of equipment will cost $146,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your...
Would you please resolve questions H, I. J-1. J-2, K-1, and K-2?
Rest of the answers are already resolved.
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $96,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $43,800. A new piece of equipment will cost $210,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost...
Please evaluate below questions. d-1. Determine the net present
value. (Use the WACC from part c rounded to 2 decimal places as a
percent as the cost of capital (e.g., 12.34%). Do not round any
other intermediate calculations. Round your answer to 2 decimal
places.)
1/(1+0.1306)^1 = 0.88448611356
1/(1+0.1306)^2 = 0.78231568509
1/(1+0.1306)^3 = 0.69194735989
1/(1+0.1306)^4 = 0.61201783114
1/(1+0.1306)^5 = 0.5413212729
1/(1+0.1306)^6 = 0.47879114886
170000 * 0.88448611356 = 150362.64
155300 * 0.78231568509 = 121493.63
122880 * 0.69194735989 = 85026.49
105662.5 *...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago