The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.

You invest in a piece of equipment costing $40,000. The equipment will be used for two years, and it will be worth $15,000 at th

inna [77]

Answer:

The answer is given below;

Explanation:

Description 0 1 2

Equipment (40,000)

Depreciation

(40,000/10,000)*4,000 (16,000)

(40,000/10,000)*6,000 (24,000)

Savings 28,000 40,000

Salvage Value 15,000

Net Cash flows 12,000 31,000

PV factor 1/1.1 =.91 1/1.1^2=.83

Net present value

PV factor*net cash flows 10,920 25,730

(10,920+25,730) 36,650

Net present value (40,000)+36,650=(3,350)

7 0

3 years ago

A bank has the following balance sheet: SETS RETURN % MILLION $ LIABILITIES COST % MILLION $ Cash 0.00 35 Fixed-rate Deposits 3.

snow_tiger [21]

Answer:

$1,140,000

Explanation:

Calculation to determine what the bank's NII will change by

First step is to calculate the bank's one-year repricing gap

Using this formula

Repricing gap=RSAs - RSLs

Where,

RSAs =Securities+Short-term loans

RSLs =Variable-rate Deposits+Fed funds

Let plug in the formula

($ Million)

Repricing gap=[$300 + $225] - [$260 + $75]

Repricing gap=$190

Now let calculate what the bank's NII will change by

Using this formula

Change in bank's NII=Repricing gap*Interest rates

Let plug in the formula

Change in bank's NII=$190,000,000*0.0060

Change in bank's NII =$1,140,000

Therefore If the spread effect is zero and all interest rates increase 60 basis points, the bank's NII will change by $1,140,000

7 0

3 years ago

Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of

nalin [4]

The Initial value of debt is $111.11 million.

Value of unlevered equity = ($100 million+ $150 million + $191 million)/3 / 1.05

Value of unlevered equity = $147 miliion / 1.05

Value of unlevered equity = $140 million.

Since the corporation have has zero-coupon debt with a $125 million face value, this means If the firm has a value of $100 million, all of it is from the debt value,

Initial value of debt = ($100 million + $125 million + $125 million)/3 / 1.05

Initial value of debt = $111.11 million.

The Initial value of equity = Value of unlevered equity - Initial value of debt

The Initial value of equity = $140 million - $111.11 million

The Initial value of equity = $29 million

Hence, the Initial value of debt is $111.11 million.

Read more about Debt:

<em>brainly.com/question/11556132</em>

7 0

2 years ago

One reason limited liability companies have become so popular is that they

luda_lava [24]

One reason why limited liability companies (LLC's) have become so popular is that they have the advantages of a corporation as to liabilities and have lesser tax. Members of the LLC will only be taxed once while corporations are taxed in their income and its individual shareholders.

8 0

4 years ago

Which of these components does a business exclude from its net income under operating surplus

solniwko [45]

It excludes money paid as salaries or wages to employees.

3 0

3 years ago