Buying goods or services instead of producing or providing them in-house is called:

Your company, CSUS Inc., is considering a new project whose data are shown below. The required equipment has a 3-year tax life,

Misha Larkins [42]

Answer:

cash flow = $13090

Explanation:

given data

Equipment cost= $70,000

Sales revenues = $42,500

operating costs = $25,000

Tax rate = 35.0%

solution

we know that MCAR for 7 % is

MCAR = 7% of 70000 = $4900

and

sale rev is 42000

so

EBITDA = sale rev - operating cost

EBITDA = 42500 - 25000

EBITDA = $17500

and

EBIT = 17500 - 4900

EBIT = 12600

and

tax is 35 % that is = 4410

and

PAT = EBIT - tax

PAT = 12600 - 4410

PAT = 8190

so

cash flow = 8190 + 4900

cash flow = $13090

4 0

2 years ago

Read 2 more answers

The actual cash received during the week ended October 31 for cash sales was $23,447 and the amount indicated by the cash regist

Rufina [12.5K]

Explanation:

Data given in the question

Actual cash received = $23,447

But the amount indicated on the cash register is $23,457

So, by considering the above information, the journal entry is as follows

Cash $23,447

Cash short and over $10

To Sales $23,457

(Being the cash receipts and the cash sales is recorded)

6 0

2 years ago

A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The repor

Sveta_85 [38]

Answer:

YTM 5.2% present value: $1,023.1644

YTM 1% present value: $1,427.2169

YTM 8% present value: $830.1209

YTM 8% present value: $515.7617

Explanation:

YTM we will calculate the present value of the coupon payment

andthe maturity at each YTM rate given:

The coupon payment present value will be the present value of an ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment 28 (1,000 x 2.75%)

time 20 (10 years x 2 payment per year)

rate 0.026 (YTM over 2 as the payment are semiannually)

$27.5 \times \frac{1-(1+0.026)^{-20} }{0.026} = PV\\$

PV $424.6800

The present value of the maturity will be the present value of a lump sum:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 20.00

rate 0.026

$\frac{1000}{(1 + 0.026)^{20} } = PV$

PV 598.48

PV c $424.6800

PV m $598.4843

Total $1,023.1644

Now, we will calculate changin the YTM the concept and formulas are the same, just the rate is diffrent:

If YTM = 1%

$27.5 \times \frac{1-(1+0.005)^{-20} }{0.005} = PV\\$

$\frac{1000}{(1 + 0.005)^{20} } = PV$

PV c $522.1540

PV m $905.0629

Total $1,427.2169

If YTM = 8%

$27.5 \times \frac{1-(1+0.04)^{-20} }{0.04} = PV\\$

$\frac{1000}{(1 + 0.04)^{20} } = PV$

PV c $373.7340

PV m $456.3869

Total $830.1209

If YTM = 15%

$27.5 \times \frac{1-(1+0.075)^{-20} }{0.075} = PV\\$

$\frac{1000}{(1 + 0.075)^{20} } = PV$

PV c $280.3485

PV m $235.4131

Total $515.7617

3 0

2 years ago

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

yarga [219]

Answer:

$10,700

Explanation:

The unit product cost = $15 + $57 + $3 = $75

Sale revenue = $100 × 8,400 = $840,000

Less :Variable cost

Variable cost of goods sold = 8,400 × $75 = $630,000

Variable selling and administrative = 8,400 × $7 = $58,800

Contribution margin = $151,200

Fixed manufacturing overhead = $132,000

Fixed selling and administrative expenses = $8,500

Net operating income = $10,700

4 0

2 years ago

You paid $713 last year for a zero-coupon bond that promised to pay you $1,000 at the end of 5 years. Rather than hold it for th

andreyandreev [35.5K]

Answer:

The bond today will be valued at 708.4252

Explanation:

The price for the bond will be the present value of 1,000 at the current market rate of 9%

We will use the present value of a lump sum to calculate this:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000 dollars

time 4 years

rate 9% = 9/100 = 0.09

$\frac{1000}{(1 + 0.09)^{4} } = PV$

PV $708.4252

This will be the expected market value for the bond.

8 0

2 years ago