Homework Answers
Q4. 2nd Option:- It has least conservative Reinvestment Plan, as IRR assumes that a project with Low IRR has reinvestment at low rate of return and vice versa. MIRR does not assume the same and considers Reinvestment rate and MIRR to be different.
Q15. B. Capital Loss, Added to sale price ( as Capital loss is outcome of sale of asset , also it will lead to saving in taxes thus added in sale of asset during calculation of terminal cash flow.)
Q26 A. $ 202,974 (199999+2975) Inventory is Current Assets, Residual Value is useful in Depreciation Calculation , nothing to do with Investment.
Q35 Future Value = Equal Annual Cash Flow * FVAF (r%, 7years)
8.33333 = FVAF (r%, 7 years)
It falls between 5% and 6%
= 5% + (PVAF at 6% - our Value)/ (PVAF at 6% - PVAF at 5%) * 1 (being difference in %)
= 5% + (8.39384-8.33333)/ (8.39384- 8.142) *1
= 5% + 0.24% = 5.24% (Answer nearest to 5.24 is 5.29%
Thus Option D
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QUESTION 4 Which of the following is a pitfall/con of IRR? There is only one solution...
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(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
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(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
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computer equipment to Daniell Co. and immediately leased it back
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Answers?
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Please show in Excel
The Rapport Company currently uses a machine that was purchased 4 years ago. This machine is being depreciated on a straight-line basis, and it has 5 years of remaining life. Its current book value is $5,000, and it can be sold for $6,500 at this time. Thus, the annual depreciation expense is $5000/5 = $1000 per year. If the old machine is not replaced, it can be sold for $500 at the end of its useful...
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Presented below are four independent situations.
(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
(a) On December 31, 2017, Concord Inc. sold
computer equipment to Daniell Co. and immediately leased it back
for 10 years. The sales price of the equipment was $521,500, its
carrying amount is $403,700, and its estimated remaining economic
life is 12 years. Determine the amount of deferred revenue to be
reported from...
Presented below are four independent situations.
(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
(a) On December 31, 2017, Sarasota Inc. sold
computer equipment to Daniell Co. and immediately leased it back
for 10 years. The sales price of the equipment was $517,100, its
carrying amount is $398,400, and its estimated remaining economic
life is 12 years. Determine the amount of deferred revenue to be
reported from...
Answers?
amortized over its useful life? would be 11. Which of the following A, $100,000 spent the B. $25,000 paid to successfully C. $150,000 paid for the exploratianof a natural resource deposit. D. $75,000 paid to purchase a regstered trademark spent on the development of a 12. Which of the following costs should be expensed when incurred? A. Replacement cost of machine component which extends the machine's useful life B. Cost of a machine which will be used exclusively for...
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Please show in Excel
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