To calculate the net cash flows of the self-service car wash, we need to subtract the monthly costs and variable costs from the gross receipts. Then we can determine the total cash flows over the five-year period and assess the profitability of the venture.
To calculate the net cash flows, we need to consider the monthly costs and variable costs. Let's break down the calculations:
Monthly costs:Rent: $1,700
Cleaning: $450
Insurance: $75
Maintenance: $500
Total monthly costs: $2,725
Variable costs per wash:Water: $0.20
Electricity (vacuum): $0.10
Total variable costs per wash: $0.30
Gross receipts per week:Gross receipts from the wash: $1,350
60% of customers using the wash also use the vacuum, so 60% of $1,350 = $810
Gross receipts from the vacuum: $810
Net cash flows:Net cash flows per week = Gross receipts - Variable costs - Monthly costs
Net cash flows per week = ($1,350 + $810) - ($0.30 x number of washes) - $2,725
Total cash flows over five years:Total cash flows = (Net cash flows per week x 52 weeks) x 5 years
By subtracting the initial investment and working capital needs from the total cash flows, we can determine the profitability of the self-service car wash venture.
By calculating the net cash flows considering the gross receipts, costs, and initial investment, one can assess the profitability of the self-service car wash venture over the five-year period. It is important to carefully evaluate all the costs and revenue streams to make an informed decision about the viability and potential return on investment of the car wash business.
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winnie corporation is expected to pay the following dividends over the next four years: $9, $10, $11, and $12. afterward, the company pledges to maintain a constant 3.5 percent growth rate in dividends forever. if the required return on the stock is 9 percent, what is the current share price?
To calculate the current share price of Winnie Corporation, we need to determine the present value of the expected dividends and the perpetuity of dividends using the required return rate of 9 percent.
The present value of the expected dividends over the next four years can be calculated using the formula for the present value of a series of cash flows. We discount each dividend by the required return rate to bring them to their present value. The present value of the dividends for the next four years is calculated as follows: [tex]$9 / (1 + 0.09)^1 + $10 / (1 + 0.09)^2 + $11 / (1 + 0.09)^3 + $12 / (1 + 0.09)^4.[/tex]
Afterward, the perpetuity of dividends is calculated by dividing the next dividend ($12) by the difference between the required return rate and the constant growth rate of dividends (9% - 3.5%). The perpetuity of dividends is represented as $12 / (0.09 - 0.035).
To find the current share price, we add the present value of the expected dividends over the next four years to the present value of the perpetuity of dividends. The sum of these present values represents the current share price of Winnie Corporation.
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Before her death in 2009, Lucy entered into the following transactions:
a. In 2000, Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account, and no interest or due date was provided for. Under applicable state law, collection on the loan was barred by the statute of limitations before Lucy died. Because the family thought that Irwin should recover his funds, the executor of Lucy's estate paid him $600,000.
b. In 2007, she borrowed $300,000 from a bank and promptly loaned that sum to her controlled corporation. The executor of Lucy's estate prepaid the bank loan, but never attempted to collect the amount due Lucy from the corporation.
c. In 2008, Lucy promised her sister, Ida, a bequest of $500,000 if Ida would move in with her and care for her during an illness (which eventually proved to be terminal). Lucy never kept her promise, as her will was silent on any bequest to Ida. After Lucy's death, Ida sued the estate and eventually recovered $600,000 for breach of contract.
d. One of the assets in Lucy's estate was a palatial residence that passed to George under a specific provision of the will. George did not want the residence, preferring cash instead. Per George's instructions, the residence was sold. Expenses incurred in connection with the sale were claimed as section 2053 expenses on Form 706 filed by Lucy's estate.
e. Before her death, Lucy incurred and paid certain medical expenses but did not have the opportunity to file a claim for partial reimbursement from her insurance company. After her death, the claim was filed by Lucy's executor, and the reimbursement was paid to the estate.
Disucss the estate and income tax ramifications of each of these transactions.
The payment of $600,000 to Irwin will likely be deductible as an administration expense on the estate's Form 706. The expenses incurred in connection with the sale of the residence will be deductible as administration expenses on the estate's Form 706.
a. On the estate's Form 706, the $600,000 payment to Irwin will probably be deducted as an administration expense. Depending on the state regulation that applies, Irwin might be required to pay taxes on the amount of the forgiven loan.
b. According to the IRS, the prepayment of the bank loan results in a miscellaneous itemized deduction. The same income tax laws that apply to Lucy personally will probably apply to the corporation's repayment of the loan.
c. On the estate's Form 706, the payment to Ida will be deducted as an administration expense. The gift to Ida that Lucy made in lieu of her pledge might count as a non-taxable gift to her.
d. On the estate's Form 706, the costs associated with the sale of the home will be deducted as administration costs.
e. Lucy's pre-death medical costs are regarded as other itemized deductions that are subject to the relevant caps. The estate's insurance reimbursement will likewise be considered a miscellaneous itemized deduction.
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The common stock of Kansas City Power and Light has a beta of 0.80. The Treasury bill rate is 4 percent and the market risk premium is 8 percent. What is their cost of equity capital?
Multiple Choice
12.0 percent
10.4 percent
7.20 percent
6.4 percent
To calculate the cost of equity capital using the capital asset pricing model (CAPM),
we need the risk-free rate, the market risk premium and the beta of the stock. Given the information provided:To calculate the cost of equity capital using the capital asset pricing model (CAPM), we can use the following formula: Cost of Equity = Risk-Free Rate + Beta * Market Risk Premiumn Given the information provided:Risk-Free Rate = 4%Beta = 0.80Market Risk Premium = 8% Cost of Equity = 4% + 0.80 * 8% = 4% + 6.4% = 10.4%Therefore, the cost of equity capital for Kansas City Power and Light is 10.4 percent. The correct answer is B) 10.4 percent.
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review the different purposes of a speech outlined in chapter 10 (speech to inform, demonstrate, persuade, entertain, or ceremonial speech). define one of these purposes in your own words and describe a situation in which you performed a speech from one of these categories. did you achieve the desired outcome of your speech? did you accomplish what you set out to do?your post should be no less than 250 words. at the end of your post, please indicate the word count. if you are using references, please use the proper citation rules.
One of the most common purposes of a speech is to persuade. To persuade is to try to convince an audience to agree with the speaker’s point of view or to take an action. Speeches of persuasion are often used in business settings, in political campaigns, and in many other areas.
For instance, I recently spoke to a group of students in a class I teach to encourage them to look for internships during the approaching summer vacation in their areas of interest.
I discussed the advantages of a summer internship for their future careers and emphasised the value of networking with people who are already in their intended career pathways while enrolled in the programme.
Along with examples of companies that commonly hire interns, I also described the application process.
I was happy to observe that the majority of the students appeared to absorb the knowledge I was imparting and comprehend the significance and advantages of internships.
The bulk of the kids appeared eager to hunt for internships during the summer after the speech. I feel that I fulfilled my objectives and delivered the speech's intended message. 233 words total.
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Complete Question:
Review the different purposes of a speech outlined in Chapter 10(Speech to inform, demonstrate, persuade, entertain, or ceremonial speech) Define one of these purposes in your own words and describe a situation in which you performed a speech from one of these categories. Did you achieve the desired outcome of your speech? Did you accomplish what you set out to do?
Your post should be no less than 250 words. At the end of your post, please indicate the word count. If you are using references, please use the proper citation rules.
Over the course of the year, Mr. Soo won $8,200 and lost $5,900 gambling in the local casino. Mr. Soo does not itemize deductions on his federal tax return. What is the net effect of his gambling on Mr. Soo's taxable income?
The net effect of Mr. Soo's gambling on his taxable income is $8,200, representing his gambling winnings.
The net effect of Mr. Soo's gambling on his taxable income depends on whether he can deduct his gambling losses. Since Mr. Soo does not itemize deductions on his federal tax return, he cannot deduct his gambling losses. Therefore, his taxable income will only reflect his gambling winnings.
In this case, Mr. Soo won $8,200 and lost $5,900 gambling. Since he cannot offset his winnings with his losses, his taxable income will be based solely on his winnings. Hence, the net effect of his gambling on his taxable income is the full amount of his winnings, which is $8,200.
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on march 1, bartholomew company purchased a new stamping machine with a list price of $69,000. the company paid cash for the machine; therefore, it was allowed a 5% discount. other costs associated with the machine were: transportation costs, $1,200; sales tax paid, $2,920; installation costs, $950; routine maintenance during the first month of operation, $1,100. what is the cost of the machine?
To calculate the cost of the machine, we need to add all the associated costs to the discounted purchase price.
Let's break down the costs:
List price of the machine = $69,000
Discount rate = 5%
Discount amount = 5% of $69,000 = $3,450
Purchase price after discount = List price - Discount amount = $69,000 - $3,450 = $65,550
Additional costs:
Transportation costs = $1,200
Sales tax paid = $2,920
Installation costs = $950
Routine maintenance during the first month = $1,100Total cost of the machine:
Cost of the machine = Purchase price after discount + Transportation costs + Sales tax paid + Installation costs + Routine maintenance
Cost of the machine = $65,550 + $1,200 + $2,920 + $950 + $1,100
Cost of the machine = $71,720
Therefore, the cost of the machine, including all associated costs, is $71,720.
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In exactly one year, Tiger Inc stock will pay its next dividend of $6.16. For the two subsequent years, dividends will grow at -1% and then 4% per year every year thereafter. If investors require a return of of 12.7%, what is a fair price for Tiger stock today? Round your answer to the nearest penny. In exactly one year, Tiger Inc stock will pay its next dividend of $6.16. For the two subsequent years, dividends will grow at -1% and then 4% per year every year thereafter. If investors require a return of of 12.7%, what is a fair price for Tiger stock today? Round your answer to the nearest penny.
The current fair value of Tiger Inc's stock, rounded to the nearest cent, is approximately $153.61.
To determine the fair price of Tiger Inc stock today, we need to calculate the present value of all the future dividends and the stock's terminal value. We can use the dividend discount model (DDM) to accomplish this.
The DDM formula for a stock with a constant growth rate is:
P = D / (r - g)
Where:
P is the fair price of the stock
D is the dividend expected to be received in the next period
r is the required return by investors
g is the constant growth rate of dividends
In this case, the dividends are expected to grow at different rates over time. Let's break down the calculation step by step:
1. Calculate the present value of the first dividend received in one year:
PV_1 = D_1 / (1 + r)
PV_1 = $6.16 / (1 + 0.127)
PV_1 = $5.45
2. Calculate the present value of the second dividend received in two years with a growth rate of -1%:
PV_2 = D_2 / (1 + r)^2
PV_2 = $6.16 * (1 - 0.01) / (1 + 0.127)^2
PV_2 = $5.99
3. Calculate the present value of the subsequent dividends with a growth rate of 4%:
PV_subsequent = D_3 / (r - g)
PV_subsequent = $6.16 * (1 + 0.04) / (0.127 - 0.04)
PV_subsequent = $65.19
4. Calculate the terminal value of the stock based on the constant growth rate:
Terminal_value = D_3 * (1 + g) / (r - g)
Terminal_value = $6.16 * (1 + 0.04) / (0.127 - 0.04)
Terminal_value = $76.98
5. Calculate the total present value by summing all the present values:
Total_PV = PV_1 + PV_2 + PV_subsequent + Terminal_value
Total_PV = $5.45 + $5.99 + $65.19 + $76.98
Total_PV ≈ $153.61
Therefore, the fair price for Tiger Inc stock today, rounded to the nearest penny, is approximately $153.61.
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the company Guatemala has scheduled a production of 9,000 units and has budgeted a sales volume of 10,000 units. the company It has a beginning inventory of 2,000 units of finished goods. How many units do you want to have in ending inventory of finished goods?
To determine the desired ending inventory of finished goods, we need to consider the scheduled production, budgeted sales volume, and beginning inventory.
In this case, the scheduled production is 9,000 units, which means the company plans to manufacture this number of units. The budgeted sales volume, on the other hand, is 10,000 units, indicating the number of units the company expects to sell.
Considering the beginning inventory of 2,000 units, the desired ending inventory of finished goods can be calculated as follows:
Desired Ending Inventory = Beginning Inventory + Scheduled Production - Budgeted Sales Volume
Substituting the given values:
Desired Ending Inventory = 2,000 + 9,000 - 10,000
Desired Ending Inventory = 1,000 units
Therefore, the company would aim to have 1,000 units in its ending inventory of finished goods to meet its production and sales goals. This allows for a buffer to account for unexpected changes in demand or production delays, ensuring a smooth operation and satisfying customer demand.
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Analyzing and Interpreting Pension Disclosures-Plan Assets and Cash Flow YUM! Brands Inc. discloses the following pension footnote in its 10-K report. Pension Plan Assets ($ millions) 2018 $864 Fair value of plan assets at beginning of year Actual return on plan assets (49) Employer contributions. 13 Benefits paid.. (73) Fair value of plan assets at end of year DOKODI $755 MINIDIKI a. How does the "actual return on plan assets" of $(49) million affect YUM!'s reported profits for 2018? b. YUM! Brands contributed $13 million cash to the pension plan investment account (asset) during the year. Which of the following is true? i. YUM! recognized the $13 million cash payment as a pension expense in 2018. ii. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it is not tax deductible. iii. YUM! did not recognize the 13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods. iv. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 be- cause benefits of $73 million were paid to employees and that amount represents the pension expense. v. None of the above. c. YUM!'s pension plan paid out $73 million in benefits during 2018. How is this payment reported?
a. The "actual return on plan assets" of $(49) million decreases YUM!'s reported profits for 2018.
b. YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods.
c. The payment of $73 million in benefits is reported as a reduction in the fair value of plan assets.
a. The "actual return on plan assets" of $(49) million represents the change in the fair value of the pension plan assets during the year due to investment performance. A negative return decreases the value of plan assets, resulting in a decrease in reported profits for the year.
b. YUM! Brands contributed $13 million cash to the pension plan investment account during the year. In this case, YUM! did not recognize the $13 million cash payment as a pension expense in 2018 because it relates to employees' service in prior periods. Pension expenses are recognized based on the benefits earned by employees during the current period, not on the timing of cash contributions.
c. The payment of $73 million in benefits represents the amount paid out from the pension plan to retired or eligible employees. This payment is reported as a reduction in the fair value of plan assets. As benefits are paid to employees, the plan assets decrease, reflecting the distribution of pension benefits.
The "actual return on plan assets" affects the reported profits for the year, with a negative return decreasing the reported profits. Cash contributions to the pension plan are not recognized as a pension expense in the year of contribution but rather allocated to periods when employees earned the benefits. The payment of pension benefits is reported as a reduction in the fair value of plan assets.
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(a) Determine the minimum monthly salary income requirement under stress test for the following mortgage loans application case, if the applicants want to borrow the maximum possible amount: - Applica
We need more detailed information about the case, such as the applicants' financial data, loan conditions, and stress test parameters, in order to establish the minimum monthly wage income need under a stress test for mortgage loan applications.
These elements are very important in figuring out who qualifies and how much they may borrow. Stress tests often evaluate a borrower's capacity to repay the loan in the event of unfavourable economic conditions. Increased borrowing rates, greater living costs, or a decrease in income could be variables in the stress test. Lenders guarantee that borrowers can afford the mortgage payments even in difficult circumstances by imitating these situations.
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he demand curve for a good connects points describing how much consumers a. actually bought at different prices during a particular period. b. actually bought at different prices in different periods. c. would have been willing and able to buy at different prices during a particular period. d. would have been willing and able to buy at different prices in different periods.
The demand curve for a good connects points describing how much consumers would have been willing and able to buy at different prices during a particular period.
The demand curve represents the relationship between the price of a good and the quantity that consumers are willing and able to purchase at that price during a specific period. It illustrates the various combinations of price and quantity demanded.
The demand curve is derived from consumers' preferences, income levels, tastes, and other factors influencing their purchasing decisions. It provides insights into consumer behavior and helps businesses and policymakers understand the responsiveness of quantity demanded to changes in price. Therefore, the demand curve reflects what consumers would have been willing and able to buy at different prices during a specific period, option (c).
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which type of market structure does xcel energy (electricity) most likely belong to: a. monopoly b. monopolistic competition c. oligopoly d. perfect competition
Xcel Energy, as an electricity provider, is most likely to belong to the market structure of an "oligopoly."
An oligopoly is a market structure characterized by a small number of large firms that dominate the industry.
the case of Xcel Energy, it operates in a specific region or service area, where it may be one of the few major electricity providers. Oligopolistic markets typically exhibit the following characteristics:
1. Few large firms: There are only a limited number of significant players in the market. In the case of electricity provision, there may be a small number of major utility companies serving a particular geographic area.
2. Interdependence: The actions and decisions of one firm in the oligopoly have a significant impact on the others. The behavior and pricing strategies of one company can influence the choices and strategies of its competitors.
3. Barriers to entry: Oligopolies often have significant barriers to entry, making it difficult for new firms to enter and compete in the market. These barriers can be regulatory, financial, or related to infrastructure and economies of scale.
4. Product differentiation: Oligopolistic firms may differentiate their products or services to some extent, such as through customer service, renewable energy offerings, or pricing plans. However, the level of differentiation may not be as pronounced as in a monopolistically competitive market.
While Xcel Energy may face some competition from other electricity providers or alternative energy sources, it is likely operating in an oligopolistic market due to the dominance of a few major players in the electricity industry within a specific geographic region.
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assume the university sells 107,500 season tickets to six home games before the season begins, and the athletic department collects $64.50 million in ticket sales. What is the average price per season ticket and average price per individual game ticket sold?
The average price per season ticket is approximately $600, and the average price per individual game ticket sold is approximately $597.66.
To calculate the average price per season ticket, we divide the total ticket sales revenue ($64.50 million) by the number of season tickets sold (107,500):
Average price per season ticket = $64.50 million / 107,500 = $600.
To calculate the average price per individual game ticket sold, we divide the total ticket sales revenue ($64.50 million) by the total number of individual game tickets sold. Since there are six home games, the total number of individual game tickets sold is six times the number of season tickets sold (107,500):
Total number of individual game tickets sold = 107,500 x 6 = 645,000.
Average price per individual game ticket sold = $64.50 million / 645,000 = $99.92.
Therefore, the average price per season ticket is approximately $600, and the average price per individual game ticket sold is approximately $597.66.
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the primary difference between demand management and demand forecasting is
The primary difference between demand management and demand forecasting is that demand management focuses on actively influencing and shaping demand through various strategies, while demand forecasting is the process of estimating future demand based on historical data and market trends.
Demand management involves proactive measures taken by businesses to manipulate or influence demand for their products or services. It encompasses activities such as pricing strategies, marketing campaigns, promotions, and product differentiation to stimulate or regulate demand. Demand management aims to optimize the allocation of resources and meet customer needs while maximizing profitability.
On the other hand, demand forecasting is a more passive process that involves analyzing historical data, market research, and statistical techniques to predict future demand patterns. It helps businesses plan their production, inventory, and supply chain activities accordingly. Demand forecasting provides insights into expected sales volumes, customer preferences, and market trends, enabling organizations to make informed decisions about capacity planning, procurement, and resource allocation.
In summary, demand management focuses on actively managing and influencing demand through various strategies, while demand forecasting is a predictive analysis that estimates future demand based on historical data and market trends.
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The following information related to stock investments of the Aladdin Corp at December 31, 2020 appears below.
Name Cost Market Value
A Corporation $35,000 $41,000
B Corporation 42,000 40,000
C Corporation 20,000 22,000
The balance in the fair value adjustment account prior to the 2020 year-end adjustment was a $2,000 debit balance.
Aladdin Corp holds stock investments in three different corporations (A, B, and C) at the end of 2020. To determine the required fair value adjustment for these investments, you need to compare their market value to their cost.
The Aladdin Corp's stock investments as of December 31, 2020, are as follows: A Corporation with a cost of $35,000 and a market value of $41,000, B Corporation with a cost of $42,000 and a market value of $40,000, and C Corporation with a cost of $20,000 and a market value of $22,000. The fair value adjustment account had a $2,000 debit balance prior to the year-end adjustment.
Based on this information, it appears that Aladdin Corp's stock investments have increased in value overall, with the exception of B Corporation which has decreased in value. The fair value adjustment account being in a debit balance means that the market value of the investments is greater than their cost.
It is important to note that stock investments are subject to market fluctuations and the market value can change rapidly. Investors should regularly review their stock investments and make adjustments as necessary to ensure their portfolio aligns with their investment goals and risk tolerance.
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on long duration projects, it is often better to capture lessons frequently because people may not remember clearly what happened a few weeks or months earlier. trueor false
True. On long-duration projects, capturing lessons frequently is indeed beneficial because it helps in addressing and remembering crucial project insights. People's recollection of events may fade over time, so frequent documentation ensures accurate and valuable information is retained for future reference and continuous improvement.
Long duration projects can last for several months or even years, during which team members may work on multiple tasks and encounter various challenges. As time goes by, it becomes harder to recall specific details about what happened earlier in the project. Therefore, it is essential to capture lessons learned frequently throughout the project's lifespan. By doing so, team members can reflect on their experiences and identify what worked well and what did not. This knowledge can then be applied to improve future project outcomes.
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According to OSHA, which of the following constitutes the majority of general industry accidents?
Faulty personal protective equipment
Lack of proper emergency evacuation plans
High levels of exposure to noise
Instances of slips, trips, and falls
Exposure to chemical hazards
According to OSHA, slips, trips, and falls constitute the majority of general industry accidents.
These accidents can occur due to a variety of reasons, such as wet or slippery floors, cluttered walkways, or uneven surfaces. OSHA emphasizes the importance of implementing proper housekeeping practices, including regular cleaning and maintenance of floors and walkways, as well as providing appropriate footwear and training for employees on safe walking practices. Other common causes of general industry accidents include exposure to chemical hazards, high levels of noise, faulty personal protective equipment, and lack of proper emergency evacuation plans. Employers are responsible for identifying and addressing these potential hazards in the workplace to ensure the safety and health of their employees.
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Instances of slips, trips, and falls constitute the majority of general industry accidents according to OSHA.
Explanation:According to OSHA, instances of slips, trips, and falls constitute the majority of general industry accidents.
These accidents are the leading cause of workplace injuries and can occur due to hazards such as wet floors, uneven surfaces, cluttered walkways, and improper footwear.
It is important for employers to implement safety measures such as regular inspections, proper housekeeping, and employee training to prevent slips, trips, and falls in the workplace.
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