In a narrative format, discuss the key facts and critical issues presented in the case. 1. Do you think Bernard Madoff engaged in creating a Ponzi scheme because of greed or did he employ it as a short term strategy and just caught up in a process that he could not reverse? 2. What were the elements that led to him so succ
BrainMass Solutions Available for Instant Download
Question: If you buy a factory for $250,000 and the terms are 20 percent down with the balance to be paid off over 30 years at a 12 percent rate of interest, the equal annual payments are about ___? Please solve.
Break-Even Analysis: Your buddy comes to you with a sure fire way to make some quick money and help pay off your student loans. His idea is to sell T-shirts with the words "I get" on them. "You get it?" He says, "You see all those bumper stickers and T-shirts that say, 'got milk' or 'got surf'. 'So this says, 'I get.' It's funny
"Is it possible for an ordinary annuity to have the same present value as a perpetuity if the cash flows and discount rates are identical?" Respond.
1.) On January 1, 2004, Carly Company decided to begin accumulating a fund for asset replacement five years later. The company plans to make five annual deposits of $30,000 at 9% each January 1 beginning in 2004. What will be the balance in the fund, within $10, on January 1, 2009 ( one year after the last deposit)? The followin
1.) A client is 20 years from retirement and desires to invest today for a $35,000 retirement annuity beginning one year following his retirement and continuing for 15 years in his retirement. The client requires an average 8 percent return over the entire term. What lump sum does the client need to invest today? What annuity am
On January 1, 2010, Ellison Co. issued 8-year bonds with a face value of 1,000,000 and a stated interest rate of 6% payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are as follows: Present value of one for eight periods at 6% .627 Present value of one for eight periods a
You are the manager of an annuity settlement company. Jim Patton just won the state lottery which promises to pay him $1,000 per year for 20 years, starting from today, and $2,000 per year for years 21-45, given a 9% discount rate. Your company wants to purchase the proceeds from the lottery from Jim. What is the most that your
What is a perpetuity? What about an annuity? Please provide an example of both.
A famous receiver just signed a $10.4 million contract providing $2.6 million a year for 4 years. A less famous receiver signed a $9.4 million 4-year contract providing $3 million now and $1.6 million a year for 4 years. The interest rate is 8%. a. Calculate the PV of the quarterback. (Do not round intermediate calculation
a. What is the present value of a 3-year annuity of $170 if the discount rate is 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the first payment? (Round your int
29) In 2008 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show: A. revenues of $225,000 and expenses of $225,000 in Unrestricted Net Assets B. revenues of $350,000 and expenses of $225,000 in Temporarily Restricted Net Assets C. expenses of $ 225,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $ 225,000 D. revenues of $225,000 and expenses of $225,000 in Temporarily Restricted Net Assets 30) All the following choices are considered a split-interest agreement, according to the Not-for-Profit Guide EXCEPT: A. charitable gift annuities B. permanent income-sharing agreements C. pooled (life) income funds D. charitable remainder trusts 31) All the following choices would be considered a special-purpose government for financial reporting purposes EXCEPT: A. a public hospital B. an art museum C. a county board of supervisors D. a public school system 32) Special purpose local governments engaged only in fiduciary-type activities are required to prepare all of the following financial reports EXCEPT: A. Statement of Changes in Fiduciary Net Assets B. Statement of Cash Flows C. MD&A D. Statement of Fiduciary Net Assets 33) A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be: A. $18,000,000 B. $19,000,000 C. $17,000,000 D. $20,000,000
29) In 2008 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $350,000. Expenses associated with the grant totaled $225,000 in 2009. In the Statement of Activities for 2009, the college should show: A. revenues of $225,000 an
Present Value of future payments; rate of return on $200,000 invested; $800 now or $1000 in three years
Your friend has given you a hot tip about an investment deal that will pay off $6,000 a year at the end of each of the next three years. If your required rate of return for investments with this degree of risk is 7%, approximately how much is the investment worth to you today? a. $4,900 b. $14,695 c. $15,745 d. $
Describe the differences between perpetuities and annuities. Give examples of both types of products. https://personal.vanguard.com/us/funds/byobjective/detail?category=LifeCycle http://www.johnhancock.com/products/annuities.html ? Find one example of a perpetuity. ? Find one example of an annuity. ? How is the perpetu
1. Grogan Manufacturing is working on two jobs. Cost is accumulated under a job order cost system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $32,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting peri
1). A corporation has the following account balances. Common Stock, $1 par value, $40,000;Paid in Capital in Excess of Par Value, $1,800,000. Based on this information, the __a). average price per share issued is $4.60 __b). legal capital is $1,840,000 __c). number of shares issued is $40,000. __d) number shares out
Problem 4 1) You will receive $4,000 three years from now. The discount rate is 10 percent. One year at 10% n =0.909 Two year at 10% n = 0.826 Three year at 10% = 0.751 a) What is the value of your investment two years from now? Multiply $4,000 X .909 (one years discount rate is 10 percent). b) What is the value of
1. Howard and Beatrice plan to marry either immediately before or immediately after year-end. Howard's taxable income for 2010 is $89,000 and Beatrice's is $85,000 before their exemptions and deductions. Neither has any dependents nor itemized deductions. Based only on tax considerations, what marriage date would you recomme
Please see attachment. Please provide formulas for each problem 5-16A, 5-20A, and 5-22A, and step-by-step problem solving for each. Please note that the last problem requires a financial calculator, which I do not have. Complete with Megastat or Data Analysis on excel?
1. Which of the following represents the largest percentage of state tax revenue? Sales tax Individual income tax Other Property tax None of the above 2. Which of the following federal government actions would make sense if a tax system fails to provide sufficient tax revenue? Issue treasury bonds Cut funding to variou
4-6A. (Cash budget) The Sharpe Corporation's projected sales for the first eight months of 2004 are as follows: January $ 90,000 May $300,000 February 120,000 June 270,000 March 135,000 July 225,000 April 240,000 August 150,000 Of Sharpe's sales, 10 percent is for cash, another 60 percent is collected in the month follow
1. Discuss how the findings of the "Corporate Philanthropy: The Age of Integration" study at http://www.philanthropy.iupui.edu/Research/Corporate%20giving-Target%20project%20July%202007.pdf could impact a fundraiser's approach. Outcome: Recognize the major components of a comprehensive development program focusing on indiv
Question: On December 31, 2009, TERVO Company accepted Rudolph Company's $20,000, 3-year note, paying 6 percent annually on December 31, as full payment for a specialty piece of equipment. The market rate of interest for similar notes is 10 percent. The following data is provided:
True or False 26.) All benefits expected from a proposed project must be measured on a cash flow basis which may be found by adding any non-cash charges deducted as expense on the firm's income statement back to net profits after taxes. 27.) The weight average cost of capital (WACC) reflects the expected avera
1. On August 1, 2002, Kathy purchased $18,000 of ISD Co.'s 18%, 14-year bonds at face value. ISD Co. has paid the semiannual interest due on the bonds regularly. On August 1, 2006, market rates of interest had fallen to 16%, and Kathy is considering selling the bonds. Using the present value tables (Table 6-4 and Table 6-5),
1) Why are certain costs of doing business capitalized when incurred and then depreciated or amortized over subsequent accounting cycles? A. To aid management in cash-flow analysis B. To match the costs of production with revenues as earned C. To reduce the federal income tax liability D. To adhere to the accoun
You would like to start saving for retirement. Assuming you are now 20 years old and you want to retire at age 60, you have 40 years to watch your investment grow. You decide to invest in the stock market, which has earned about 12% per year over the past 80 years and is expected to continue at this rate. You decide to invest
Shelley wants to cash in her winning lottery ticket. She can either receive 10, $100,000 semiannual payments starting today, or she can receive a lump-sum payment now based on a 6% annual interest rate. What is the equivalent lump-sum payment? a. $853,020 b. $801,969 c. $744,090 d. $878,611
Your son has discovered that he can throw a fastball at 114 mph. The Yankees have offered him his choice of $500 million one time signing bonus with no additional payments or a guaranteed $18 million annual salary for the rest of his life. Assuming his required return is 12%, at what age would he become indifferent to which
I plan on depositing 5,000 at the end of ever year with an expected return on the account being 9.8%, how long will it take me to reach $1 million in my account? Now what if I only deposited 4,000, what is my expected return on the account to have $1 million in my account. 16. Mattel needed to act quickly when they learned