About the estimate of replacement cost

Assignment Help Financial Management
Reference no: EM131189919

Estimate of replacement cost

The landlord carries contents insurance that should cover the damage to the furnishings, equipment and to the computers, and the insurance company adjuster will come tomorrow to assess the furnishings and equipment damage, however, your boss is sure that the insurance settlement will not cover replacement costs. consequently, you have been instructed to prepare an estimate of what has been lost and /or damaged plus an estimate of what the replacement cost might be. How would you go about it? What would your summary of these losses look like?

Reference no: EM131189919

Questions Cloud

What is the standard deviation for this particular portfolio : A hedge fund portfolio manager has two investments in her portfolio. She has different amounts invested in these two investments. The details are as follows: A – Standard deviation of 10%, $1,000,000 B – Standard deviation of 6%, $2,700,000. A and B'..
Since the new plant was funded with debt and equity : Company Baldwin invested $61,647,600 in plant and equipment last year. The plant investment was funded with bonds at a face value of $38,667,397 at 13.0% interest, and equity of $22,980,203. Depreciation is 15 years straight line. Since the new plant..
Research and analyse the leadership styles : Research and analyse the leadership styles of the selected leaders with reference to the leadership concepts covered in the unit (e.g., ethics, evolution of leadership, psychology of leadership, multi-cultural leadership, leadership theories)
Organization differ from commercial business marketing : Marketing was a four letter word for not-for-profit organizations until about 20 years ago when organizations realized they needed to adopt business practices to better reach their audiences. How does marketing for a not-for-profit organization diffe..
About the estimate of replacement cost : The landlord carries contents insurance that should cover the damage to the furnishings, equipment and to the computers, and the insurance company adjuster will come tomorrow to assess the furnishings and equipment damage, however, your boss is sure ..
Use at least two capital budgeting methods : A company has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. The company has a cost of capital of 12%. Which should the company do and why? You must use at least two capital budgeting me..
What is its self-supporting growth rate : Sales Increase Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,200,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of account..
Part of your financial planning : As part of your financial planning, you wish to purchase a new car exactly 6 years from today. The car you wish to purchase costs ?$11000 ?today, and your research indicates that its price will increase by 2?% to 4?% per year over the next 6 years. E..
Payback period-internal rate of return and net present value : Your firm has asked you to review key terms with newly hired consultants. Define the following terms: Payback period, internal rate of return, net present value, profitability index. document different ways that companies have utilized these terms. W..

Reviews

Write a Review

Financial Management Questions & Answers

  Assume that your required rate of return-stream of cash flow

Assume that your required rate of return is 12% and you are given the following stream of cash flows

  Price of this bond if the annualized yield to maturity

Consider a 10-year bond that pays a 5 percent coupon semi-annually with a face value of $1000. What is the price of this bond if the annualized yield to maturity of 4 percent

  Semiannual payments-what is the value three years from now

A 4-year annuity of eight $9,800 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 7 percent compounded monthly, what is the value of this annuity five years from now? If the di..

  Value the property using ellwood

An apartment is expected to produce $105,000 NOI the first year, increasing by 3 percent per year each year over a projected 7 year holding period. A 70 percent loan-to-value ratio is typical. Current terms are 7.5 percent interest for 25 years (annu..

  Calculate the net present value

calculate the Net Present Value (NPV) of the project. - Calculate the Profitability Index (PI) of the project. - Should your company proceed with this project?

  What is the return from holding the bond for the first year

You have been asked to value a bond that has a coupon of 3.00%, a maturity of 14 years, a par value of $100,000, and a yield to maturity of 3.25%. What is the current price of the bond? In one year the bond is priced to yield 3.50%, what would be the..

  Accelerate their depreciation schedule

What is the effect of depreciation on the amount of tax owed by a company? What is the effect of a change in the tax code that allows companies to “accelerate their depreciation schedule” (take more depreciation earlier in the life of an asset)?

  Issuing new common stock to raise investment funds

Issuing new common stock to raise investment funds is more expensive than using retained earnings as the funding source

  The financial breakeven point for each plan

Amarillo Parts is considering purchasing a small firm in the same line of business. The purchase would be financed by either the sale of common stock or by a bond issue. The financial manager wants to evaluate how the two alternative financing plans ..

  Correct about the early exercise of american options

Which of the following statements is correct about the early exercise of American options?

  When where and why did the debt crisis start

When, where, and why did the Debt Crisis start?

  What is tdds average accounts receivable figure

Two Doors Down, Inc., has weekly credit sales of $39,300, and the average collection period is 41 days. What is TDD’s average accounts receivable figure?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd