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    Sensitivity & Scenario Analysis

    Waldo County, the well-known real estate developer, worked long hours, and he expected his staff to do the same. So George Chavez was not surprised to receive a call from the boss just as George was about to leave for a long summer's weekend. Mr. County's success had been built on a remarkable instinct for a good site. He wou

    EVA, Computation of Income tax, ROI

    1. The Modern Language Corporation earned $1.6 million on net assets of $20 million. The cost of capital is 11.5%. Calculate the net ROI and EVA. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter "EVA" answer in millions rounded to 1 decimal place.) ROI % EVA $ million

    Profitability with Older Airplanes

    New-model commercial airplanes are much more fuel-efficient than older models. How is it possible for airlines flying older models to make money when its competitors are flying newer planes? Explain briefly. I believe because the price of the older planes drop drastically when they are purchased in the second-hand market all

    Over-Optimistic Projects

    it is basically up to management to filter out the overoptimistic projects. Do you think that companies might be better served if they encouraged project sponsors to be more realistic? Is it even possible to rid the sponsor of their inherent favoritism to a project? Thoughts?

    Threw Major Costs for Airlines; Older vs Newer Planes

    New-model commercial airplanes are much more fuel-efficient than older models. How is it possible for airlines flying older models to make money when its competitors are flying newer planes. This could be explained by depreciation. Airlines flying older models are likely paying fewer taxes on depreciation. It's possible the old

    Should Accounting Have to Approve Estimates?

    Overoptimism by project sponsors. Inconsistent forecasts of industry and macroeconomic variables. Capital budgeting organized solely as a bottom-up process. Do you think that accounting should have to approve all estimates and hold management accountable for anything that doesn't seem right? Why or why not?

    Relative Sales Value Method - Joint Costs

    Radhika, Please help me with this problem as I am totally lost. Product M and S are joint products. The joint production cost of the products is $1500. That is, there are costs up to a certain point and we cannot divide the products before that point. M has a market value of $2000 at the split-off point. If M is furthe

    Interest and Dividends

    Between interest income and dividend income, which is best to receive from a tax perspective? Explain in detail your answer and your interpretation of the question.

    Cost Recovery

    What are the various cost recovery methods and how do they compare and contrast?

    Accounting: Depreciation Questions

    Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2011. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method. What is the accumulated depreciation for this asset on December 31, 2012? A. $4,400 B.

    Discussing Adjusted Gross Income

    As it relates to Adjusted Gross Income and "Above the Line" or "Below the Line" when changes were made to the tax laws that created the phase out of certain itemized deductions, could there have been another way to create the same tax impact without the confusion that normally is created in the mind of taxpayers?

    Barter Income

    50 word min- on the topic of "Barter Income" where one service is provided for another and there is no exchange of monetary consideration. For example, you the accountant prepares a tax return in return for your auto mechanic tuning up your car. Class, what is the simple reason for how this is treated for tax purposes and why?

    Capital budgeting sunk costs dispose assets impact cash flow

    Incremental cash flows when deciding whether to invest in a new manufacturing plant 1.Statement - Money already spent on engineering design of the new plant. Question - Past expenses are considered sunk cost and should not be a consideration for incremental cash flow, but what if we had to alter the design, would you count tha

    Discussion of tax rate structures

    150 word min Describe the various tax rate structures; how are they different and which do you propose for the various types of taxes?

    FLSA exempt vs non-exempt

    •Locate a 1-2 page job description from your current company, former company or on-line. •Read the job description and analyze it based on the Fair Labor Standards Act. •Determine if the job is exempt or non-exempt and if exempt, indicate which exemption qualifies. •Post the job description and write a 250-300 word po

    Real Vs. Financial Assets

    1. Which of the following are real assets, and which are financial? Assets a. A share of stock. b. A personal IOU. c. A trademark. d. A factory. e. Undeveloped land. f. The balance in the firm's checking account. g. An experienced and hardworking sales force. h. A corporate bond. 2. At an interest rate of 12

    Bond Yield and Duration

    Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities: Bond Coupon (%) Price (%) 2 81.62 4 98.39 8 133.42 ________________________________________ a. What is the yield to maturity fo

    Interest, Coupons & Bond Rates

    Construct some simple examples to illustrate your answers to the following: a. If interest rates rise, bond prices rise or fall? b. If the bond yield is greater than the coupon, is the price of the bond greater or less than 100? c. If the price of a bond exceeds 100, is the yield greater or less than the coupon? d. Do high-c

    Tax Implications of Lottery Winnings

    You won $1,000,000 in the state lottery and had a choice to either receive $50,000 a year for 20 years or $560,000 now. What are the tax implications for both of the aforementioned options?

    Lottery Payout - Time Value of Money

    If you were to win $1,000,000 in the state lottery and had a choice to either receive $50,000 a year for 20 years or $560,000 now, which would you choose and why? What factors would you need to consider?

    2008 global financial crisis & fair value accounting standards

    Fair Value Accounting: How the financial crisis of 2008 highlighted the issues The financial crisis of 2008 drew attention to fair-value accounting (FVA), creating a major policy debate involving the US Congress, the European Commission as well as banking and accounting regulators around the world. Critical review the lit