Finanace Calculating Payback?
You forgot to mention the Initial Cash Outlay which I computed it to be $152,447.21 Let us set up data in tabular format to find Payback Period N---------------- Project A --- Cumulative Cash inflows --------------------------------------... 0 --------------($152,447.21) q --- 1 ----------------$60,000 ------ $060,000 2 p---------------$60,000 ------ $120,000r 3 --------------$60,000s ------ $180,000 4 ----------------$60,000 ------ $240,000 4 ----------------$60,000 ------ $300,000 ------------------------------------- The year before recovery is 2 To get the remaining months out of Year 3, we calculate as follows $152,447.21 - $120,000 / 60,000 = 0.5407868 years = 0.5407868 x 12 = 7 months So the Regular Payback Period is 2 years and 7 months N---------- Project A --- PVIF(10%,n) --- PV ----- Cumulative Cash inflows --------------------------------------... 0 --------------($152,447.21) q --- 1 ----------------$60,000 ------ 0.90909 --- $54545.40 ---- $054,545.40 2 ----------------$60,000 ------ 0.82645 --- $49587.00 ---- $104,132.40 3 p--------------$60,000 ------ 0.75131 --- $45078.60 ---- $149,211.00r 4 ----------------$60,000 ------ 0.68301 --- $40980.60 s----$190,191.60 4 ----------------$60,000 ------ 0.62092 --- $37255.20 -----$227,446.80 --------------------------------------... The year before recovery is 3 To get the remaining months out of Year 4, we calculate as follows $152,447.21 - $149,211 / 40980.60 = 0.0789 years = 0.0789 x 12 = 1 month So the discounted Payback Period is 3 years and 1 month
Accounting 1 times interest earned ratio?
M10-13 Computing the Quick Ratio and the Times Interest Earned Ratio [LO 10-5] The balance sheet for Shaver Corporation reported the following: cash $5,000; short-term investments $10,000; net accounts receivable $35,000; inventory $40,000; prepaids $10,000; current liabilities, $40,000; total stockholders’ equity, $90,000; net income, $3,320; interest expense, $4,400; income before income taxes, $5,280. I calculated the quick ratio by adding cash+short-term investments+ account receivable net/current liabitiies to get 1.25 which is correct Now trying to figure out times interest earned I did net income+ interest expense+ income tax expense/interest expense and can't seem to get the right answer. Not sure if I am doing something wrong or what.
How do I invest US$ 500,000 for monthly income?
1% of $500,000 (monthly) is $5,000 (or $60k pet year). That's a solid and comfortable American income.I'm no Investment Banker but if I had $500k to invest, I'd find a trustworthy 'money-man’ who will find the appropriate dividends or mutual funds with some sort of monthly payout option. I don't know how it works exactly because it's not my field- but I'm sure you can find an investment that returns 1% per month as part of a larger pooled Investment fund.Just be careful not to get roped into a ponzie scheme. I personally have an accountant and an investment banker who would collaborate to make that happen for me if I asked.My second choice would be to buy an office building with 5 or so 15-20 person offices- and rent them out.The rent in my area would provide $10-$15k per month. I'd open a property management company and hire someone for $40k/year to manage the property. The remaining ~$12.5k/mo after the expenses would be split between my salary and a corporate savings account to fund work to the building and future property investments.Either of those 2 methods will provide your a nice income on a monthly basis. Enough to save for future investments as well
Financial Management cash flow estimation?
I have the same problem too. I'm pretty sure Prof.Sherman will explain the whole thing tomorrow. Don't worry good luck =p
"A company has 10,000 shares of $100 par value cumulative preferred stock outstanding. The dividend rate is 6%?
Help!!! and please tell me why A company has 10,000 shares of $100 par value cumulative preferred stock outstanding. The dividend rate is 6%. If the company declares a total of $200,000 of cash dividends for the year for both its common and preferred stock and the preferred stock is two years in arrears, how much will be allocated to the (1) preferred stockholders and (2) the common stockholders? A-(1) $60,000 and (2) $140,000. B-(1) $120,000 and $80,000. C-(1) $180,000 and $20,000. D-(1) $200,000 and (2) $0. E-None of the above.
ACCOUNTING HW QUESTION PLEASE HELP!!!!!?
(1) John Jamison wants to accumulate $60,000 for a down payment on a small business. He will invest $30,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal? The Jasmine Tea Company purchased merchandise from a supplier for $28,700. Payment was a noninterest-bearing note requiring Jasmine to make five annual payments of $7,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement? Sam Robinson borrowed $10,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sam's friend would like to be reimbursed for the time value of money at a 9% annual rate. What is the annual payment Sam must make to pay back his friend?