Reference no: EM131886698
1. Your firm is considering the purchase of a new computer system. The necessary information to make the decision is provided below. What is the NPV and should the firm make the investment in the new computer system?
Cost of computer system: -50,000
Lifetime computer (years): 4
Cost savings from new system: 22,000
Cost of capital: 0.11
A. 7968.33 Yes
B. 38000.00 Yes
C. -262.96 No
2. A $1000 par value bond that was issued two years ago by the Golden Ibis Corporation has a 6% coupon. If the prevailing market rate for interest on comparable bonds is now 7%, then the Golden Ibis bond pays its bondholders an annual interest income of
a. $60, and the bond would sell for less than its par value.
b. $70, and the bond would sell for less than its par value.
c. $70, and the bond would sell for more than its par value.
d. $60, and the bond would sell for more than its par value.
|
Make an absorption costing income statement
: During 2016, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable manufacturing costs were $5 per unit.
|
|
What is the total effect on net income
: During 2016, Stockman Company began investing in the common stock of other companies. Journalize the following activities using the appropriate account titles.
|
|
What action should taken by the company regarding payable
: Your team of participants in the MFM 6 program will prepare a brief overview report on what action should be taken by the company regarding this payable
|
|
Examining the agi of marvin
: During 2016, marvin had the following transactions: salary $50,000 bank loan (proceeds used to buy personal auto) 10,000 alimony paid 6,000.
|
|
Firm is considering the purchase of new computer system
: Your firm is considering the purchase of a new computer system. What is the NPV and should the firm make the investment in the new computer system?
|
|
By how much taxable income must be adjusted
: For 2016, Brian and Erin have $1,800 of nonbusiness capital gains, $4,000 of nonbusiness capital losses, $2,700 of interest income, $18,200.
|
|
What is holmes after-tax cost of debt
: The Holmes Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. what is Holmes's after-tax cost of debt?
|
|
What is sawyer corporation modified book income
: In 2016, Sawyer Corporation, a calendar year, accrual method C corporation had income per books before tax of $350,000.
|
|
Show the DuPont framework calculation of the components
: The 2016 income statement for Anderson TV and Appliance reported sales revenue of $290,000 and net income of $70,000.
|