Finance
Jordan is considering building a nuclear power plant, which will be ready for production in 2030. The country's governing body is also considering a decommissioning liability law for the operator to put aside $1 million every month towards decommissioning cost, when the plant is producing electricity. During the 60 years of production life of the plant, the operator will put $1 million at the end of the month in a savings account, earning 7.25% compounded monthly. At the end of the production life of the plant, there are no more contributions and the money is expected to grow at the rate of 6% compounded quarterly for the next 30 years. How much interest is included in the future value in 2120? Select one: A. $74.57 billion B. $70.27 billion C. $12.49 billion D. $11.77 billion E. $73.85 billion
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1 to 10 Excel Hydro took a loan contract which requires a payment of $40 million...
1
to 10
Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale. Excel Hydro is also considering building...
Accountancy
On January 1, 2021, Jane buys a nuclear plant for $1 billion. She estimates the plant will last 10 years and will cost $10 million to clean up and remove at the end of its useful life.What is the necessary journal entry(s) for the above information?How much total depreciation expense will Jane record in 2021 if she uses the straight-line method?
Apple Computer wants to have $3.1 billion available 7 years from now to finance oreduction finance...
Apple Computer wants to have $3.1 billion available 7 years from now to finance oreduction finance production of a handheld "electronic brain" that, based on your behavior, will learn how to control nearly system. The company expects to set aside uniformly increasing amounts of to meet its goal. if the amount set aside at the end of year 1 is $45 million. all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler money each...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $24.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.34 million at the beginning of the project and will be recovered at the end. The new...
1. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the...
1. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $22.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.23 million at the beginning of the project and will be recovered at the end. The...
Electricar Inc. is considering expanding manufacturing capacities in Asia. This would involve an initial investment of...
Electricar Inc. is considering expanding manufacturing capacities in Asia. This would involve an initial investment of 4 billion RMB . The plant will start production after one year. It is expected to last for five years and a have a salvage value and the end of this period of 500 million RMB in real terms. The plant will produce 100 000 cars a year. The firm anticipates that in the first year it will be able to sell each car...
Please answer 3 - 5 thank you! - 5 thank you! 3. In his neighborhood, a...
Please answer 3 - 5 thank you!
- 5 thank you!
3. In his neighborhood, a businessman would be setting up a repair shop. At a cash price of P 2.8 Million, he would be getting a complete set of tools and equipment from a vendor. If by installment, he would need to pay today P 280,000 and the balance is payable at the end of each quarter for 5 years. The interest is at 18% cpd. qtr. Determine the...
Case 2 As of late 2019, Toyota Motor Corporation has twelve engineering and manufacturing facilities in...
Case 2 As of late 2019, Toyota Motor Corporation has twelve engineering and manufacturing facilities in the United States. Recently, Toyota has been considering expanding the production of their gas- electric hybrid drive systems in the U.S. To enable the expansion, they are contemplating investing $1.5 billion at the end of 2019 in a new plant with an expected 10-year life. In the meantime, they also need to invest $30 million upfront in net working capital before the production can...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $28.00 million. The plant and equipment will be depreciated over 10 years to a book value of $1.00 million, and sold for that amount in year 10. Net working capital will increase by $1.38 million at the beginning of the project and will be recovered at the end. The new...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant...
Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $26.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.24 million at the beginning of the project and will be recovered at the end. The new...
1
to 10
Excel Hydro took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue. The interest rate on the $40 million face value is 9.6% compounded quarterly. Before the maturity date, the original lender sold the contract to a pension fund for $43 million. The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale. Excel Hydro is also considering building...
Apple Computer wants to have $3.1 billion available 7 years from now to finance oreduction finance production of a handheld "electronic brain" that, based on your behavior, will learn how to control nearly system. The company expects to set aside uniformly increasing amounts of to meet its goal. if the amount set aside at the end of year 1 is $45 million. all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler money each...
Please answer 3 - 5 thank you!
- 5 thank you!
3. In his neighborhood, a businessman would be setting up a repair shop. At a cash price of P 2.8 Million, he would be getting a complete set of tools and equipment from a vendor. If by installment, he would need to pay today P 280,000 and the balance is payable at the end of each quarter for 5 years. The interest is at 18% cpd. qtr. Determine the...
Case 2 As of late 2019, Toyota Motor Corporation has twelve engineering and manufacturing facilities in the United States. Recently, Toyota has been considering expanding the production of their gas- electric hybrid drive systems in the U.S. To enable the expansion, they are contemplating investing $1.5 billion at the end of 2019 in a new plant with an expected 10-year life. In the meantime, they also need to invest $30 million upfront in net working capital before the production can...
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