FIN 357-On January 1, 20X1, Enterprise Company

On January 1, 20X1, Enterprise Company has the opportunity to invest in a project with an uncertain outcome. The product might be a hit and very profitable, or it might not. To put specific numbers to it, there is a 50 percent chance that the payoffs will be an annuity of $1,000 per year for three years. There is also a 50 percent chance that the payoffs will be an annuity of $500 per year for three years.The payoff on December 31, 20X1 is when Enterprise discovers whether the product is a hit or not. If the payoff is $1,000, then the other years will also be $1,000. If the payoff is $500, then the other years will also be $500.The alternative use of money is to invest it at 10 percent.a. What is the present value of the expected value of the project?b. As it happens, the land, building, and equipment have alternative uses, which means that anytime during the project Enterprise could stop the project and turn to a new project (project 2). If numbers were put to it, Enterprise anticipates that this possible other project has a present value of $1,500 as of the end of year 20X1. This means that Enterprise would have the new project (project 2) with a present value of $1,500 plus the $500 (or a total of $2,000) outcome if they switched projects on December 31, 20X1. What is the present value as of January 1, 20X1 of the first project including the option to move to the new project (project 2) at the end of 20X1?c. What is the value as of January 1, 20X1 of being able to opt out of this first project if it turns out to have a low payoff? The value of this option is the increase in present value of part b. compared to part a. I think this is sometimes called the value of the abandonment option.d. Does accounting have the possibility to tell you which path the company is on? That is, does accounting have the possibility to tell you whether the project is a hit or not? Elaborate.

 

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You are considering purchasing a personal computer

1. You are considering purchasing a personal computer. What factors would affect your price sensitivity in making the decision? How would those same factors affect the price sensitivity of some personal computer buyers differently?2. What can a company do to decrease its customer’s price sensitivity? Would all of the customers be likely to react in the same way?3. Many local rental car agencies rent late model cars at substantially lower prices than national companies such as Hertz or Avis. Despite their higher prices, the national companies still retain most of the market. Explain why most renters patronize the national car rental companies despite their higher prices. How have the national companies encouraged this price insensitivity?4. A company can gain a substantial market share advantage with lower prices in a price sensitive market. Why then would any company in such a market choose to price cooperatively?5. The gasoline service stations in Rochester, New York convinced the City Council to ban signs displaying gasoline prices. Why would they want to do this? What effect do you think this law had on gasoline prices? Why?6. Despite the fact that rental rates for commercial space and labor costs are generally higher in big cities than small towns; the prices of many products – such as electronics and clothing – are higher in small towns than in large cities. Can you explain this?7. At what point should a company “walk away from the business?” Should a company always strive to win every bid and avoid losing business?8. What are some techniques a company can employ if a customer is hung up on price?9. While airlines use segmented pricing strategies to charge business travelers more, most hotels actually give “corporate discounts” to business guests. Can you explain this anomaly?10. Steinway, a tiny but well regarded New York piano maker in the 1850”s grew quickly after Doretta Steinway, the founder’s daughter, got the idea of offering free piano lessons with the sale of each piano. Can you explain this as a segmented pricing tactic? What are the segments and why would their price sensitivities be different?

 

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the petty cash fund of auto repair service,

the petty cash fund of auto repair service, a sole proprietorship,contains the following.1.coins and currency 12.262.postage stamps 9.963.an i.o.u from richie, an employee, for cash advance 42.064 check ayable to auto repair from pottsie, an employee,marked nsf5. vouchers for the following:stamps 22.06two rose bowl tickets for nick 206.1printer cartridge 16.41the general ledger account petty cash has a balance of $346prepare the journel entry

 

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Embry LGMT 685-Chapter 15 What are the different

Hello Expertmelda would you be interested in this assignment it’s the same as the last one. I ask that bold the question to make it easier to follow. Pay is $45Chapter 15:Question 1 – What are the different main international logistics security programs, implemented either by international agencies or national governments?Question 2 – What are the main differences between the alternative approaches taken by the United States and the European Union in terms of security?Question 4 – What are the four areas in which a corporation must enact security measures to protect itself against theft and terrorism?Chapter 17:Question 2 – What are the advantages of using the metric system in international commerce?Question 3 – What are the trade-offs between utilizing a standardized policy and remaining flexible for an exporter? You can choose either terms of payment or Incoterms rules to illustrate your points.Question 4 – In your opinion, why is it important for an exporter to sell in the importer country’s currency?

 

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Jabali Ltd. is a quoted company which is financed by 10,000,000 ordinary shares

Jabali Ltd. is a quoted company which is financed by 10,000,000 ordinary shares and Sh.50,000,000 of irredeemable 8% debentures. The market value of the shares is Sh.20 each ex-div and an annual dividend of Sh.4 per share is expected to be paid in perpetuity. The debentures are considered to be risk-free and are valued at par.Mr. Jabali the managing director of the company is wondering whether to invest in a project which cost Sh.20 million and yield Sh.3.8 million a year before tax in perpetuity. The project has an estimated beta value of 1.25. The return from a well-diversified market portfolio is 16%.Required:a) The weighted average cost of capital of the company. (5 marks)b) The beta of the company. (4 marks)c) The beta of an equivalent ungeared company ignoring taxes. (4 marks)d) Advise the company whether/or not the project should be accepted. In your explanation, highlight the significance of your calculations in (a), (b) and (c) above. (7 marks) (Total: 20 marks)

 

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At the beginning of 2011, the Rolls-Royce Group

At the beginning of 2011, the Rolls-Royce Group reported in its footnotesthat its plant and equipment had an original cost of £2,538 million andthat accumulated depreciation was £1,497. Rolls-Royce depreciates itsplant and equipment on a straight-line basis under the assumption thatthe assets have an average useful life of 13 years (assume a 10 percentsalvage value). Rolls-Royce’s tax rate equals 26.5%.What adjustments should be made to Rolls-Royce’s(i) balance sheet at the beginning of 2011; and(ii) income statement for the year 2011, if you assume that the plantand equipment has an average useful life of ten years (and a 10percent salvage value)?

 

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After walking across a dry carpet, there’s

After walking across a dry carpet, there’s a potential difference of 4500 V between your hand and the doorknob. As you reach toward the knob, a spark jumps, releasing energy 1.0 ?J . Part A How much charge was transferred? Express your answer to two significant figures and include the appropriate units. Part B Assuming all the charges were electrons, how many were there?

 

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Problem 1: Grain company’s general ledger showed a balance a P2,205,600 in its “Cash”

Problem 1: Grain company's general ledger showed a balance a P2,205,600 in its “Cash” account on December 31, 2019. Included in this balance are the following items: DAIF checks returned by bank Savings account IOUS Postage stamps Bank draft Cash on hand Cash in sinking fund Customers' checks dated January 2020 Travelers advances Traveler's checks 20,000 750,000 1,200 600 10,000 30,000 500,000 5.400 4,000 8,000 Determine total amount that chould be included in cash balance at December 31, 2019

 

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Module 07 Critical Thinking Case Study

Module 07 Critical Thinking Case StudyApply the principles of one of the quality programs you have researched from your readings to a Middle Eastern organization of your choice. Include the following information in 4 page paper:• Background information on the organization• Reason why you selected the quality program for that organization• Ways in which the quality program may help enhance the organization’s performanceUse Saudi Electronic University academic writing standards and APA style guidelines, citing references as appropriate.It is strongly encouraged that you submit all assignments to the TurnItIn Originality Check prior to submitting them to your instructor for grading.

 

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Multiple Choice Question 96 Which of the following would be added to net income using the indirect..

Multiple Choice Question 96 

Which of the following would be added to net income using the indirect method?

 

An increase in prepaid expenses 

A decrease in accounts payable 

An increase in accounts receivable 

Depreciation expense

 

Multiple Choice Question 65 

Indicate where the event common stock issued for cash would appear, if at all, on the indirect statement of cash flows.

 

Operating activities section 

Investing activities section 

Financing activities section 

Does not represent a cash flow

 

Multiple Choice Question 121 

Which of the following transactions would not be classified as a financing activity?

 

Purchase of treasury stock 

Purchase of a long-term investment in bonds 

Payment of dividends 

Issuance of bonds at a discount

 

Multiple Choice Question 92 

Using the indirect method, patent amortization expense for the period

 

is added to net income. 

causes cash to increase. 

causes cash to decrease. 

is deducted from net income.

 

Multiple Choice Question 75 

Winston Company reported net income of $50,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is

 

$40,000. 

$49,000. 

$65,000.   

$45,000.

 

Multiple Choice Question 122 

A measure that describes the cash remaining from operations after adjustment for capital expenditures and dividends is

 

adjusted cash from operations. 

cash provided by operations. 

free cash flow. 

net cash provided by operating activities.

 

Multiple Choice Question 45 

In addition to the three basic financial statements, which of the following is also a required financial statement?

 

the Statement of Cash Flows 

the “Cash Budget” 

the “Cash Reconciliation” 

the Statement of Cash Inflows and Outflows

 

Multiple Choice Question 109 

In Stretch Company, there was an increase in the land account during the year of $48,000. Analysis reveals that the change resulted from a cash sale of land at cost $110,000, and a cash purchase of land for $158,000. In the statement of cash flows, the change in the land account should be reported in the investment section:

 

as a net purchase of land, $48,000. 

only as a purchase of land $158,000. 

as a purchase of land $158,000 and a sale of land $110,000. 

only as a sale of land $110,000.

 

Multiple Choice Question 90 

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

 

indirect method. 

cost-benefit method. 

working capital method. 

direct method.

 

Multiple Choice Question 149 

Which of the following steps is not required in preparing the statement of cash flows?

 

Determine the net change in cash. 

Determine cash from investing and financing activities. 

Determine the change in current assets. 

Determine the net cash provided by operating activities.

 

Multiple Choice Question 71 

Carrot Company issued common stock for proceeds of $381,000 during 2013. The company paid dividends of $90,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $18,000. The financing section of the statement of cash flows will report net cash inflows of

 

$183,000. 

$489,000. 

$273,000.   

$363,000.

 

Multiple Choice Question 74 

Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $160,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

 

$165,000. 

$205,000. 

$160,000. 

$155,000. 

 

IFRS Multiple Choice Question 220 

Under IFRS, the cash flow statement can be prepared using

 

either the direct or indirect method. 

the direct method only. 

the T-account method only. 

the indirect method only.

 

Multiple Choice Question 125 

During 2013, Forman Industries reported cash provided by operations of $690,000, cash used in investing of $1,029,000, and cash used in financing of $135,000. In addition, cash spent for fixed assets during the period was $414,000. No dividends were paid. Based on this information, what was Forman's free cash flow?

 

($339,000) 

($888,000) 

$1,440,000 

$276,000   

 

Multiple Choice Question 73 

Accounts receivable arising from sales to customers amounted to $85,000 and $75,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $285,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

 

$295,000.   

$445,000. 

$275,000. 

$285,000.

 

 

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