Your company manufactures circuit boards and other electronic parts for various commercial products. design changes in part of the product line, which are expected to increase sales, will require changes in the manufacturing operation. to do so, a new equipment needs to be bought with cost basis of $220,000, and it is depreciated using the 150% db method for 6 years. annual revenues in real dollars are estimated to be $360,000. annual expenses in real dollars are estimated to be $239,000. the estimated market value of equipment in actual dollars at the end of the six-year analysis period is $40,000. the inflation rate is 2.5% per year. the after-tax market marr is 10% per year and the effective income tax rate is 39%.

a) construct a table which clearly shows btcf, depreciation, taxable income, tax, atcf (all in actual dollars) and explain how the first column (btcf) is calculated.
b) compute the net present value of this project.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

When you hire an independent contractor you don't have to pay the contractors what