investment problem

Please help me solve the following: Two electrical systems are being compared for a new industrial plant. The one system will have first cost of $200,000 and annual operating costs of $10,000. The second system will have first cost of $300,000 and annual operating costs of $5,000. Each system will be depreciated over a period of 10 years using straight line depreciation. The company is in a 35% tax bracket. Which system should be selected if they both help produce the same expected profits over the life of the investment?

Capital Budgeting: This is an application of capital budgeting that integrates the projection of a basic cash flow and the computation and analysis of six capital budgeting tools. Your company is thinking about acquiring another corporation. You have two choices; the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:

This is an application of capital budgeting that integrates the projection of a basic cash flow and the computation and analysis of six capital budgeting tools. Your company is thinking about acquiring another corporation. You have two choices; the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data: a. Corporation A: 1) Revenues = 100K in year one, increasing by 10% each year. 2) Expenses = 20K in year one, increasing by 15% each year. 3) Depreciation Expense = 5K each year. 4) Tax Rate = 25% 5) Discount Rate = 10% b. Corporation B: 1) Revenues = 150K in year one, increasing by... click for more

Calculate the price the bond sold for...

Minimus sold a 100,000 9% 3 year bond issue due on march 31 year 1 at a price yield to investors 10%. Interest rates are per annum compounded semi-annually. The bond interest is payable each september 30 and march 31, with the first payment due september 30 year 1. Premium or discount is amortized by straight line method. Year end is dec 31 Calculate the price the bond sold for Prepare all year 1 journal entries, plus the journal entry needed march 31 year 2 show how the bond will be reported on dec 31 year 1

Bond Problem and Internal Rate of return.

A bond market price is $1000 the interest of the bond is 3% compounded Monthly The madurity date is 5 years The Face Value is $1010 Find the Efective Internal Rate of return.

Financial Statement Analyis

I need help with problem 6 part (i): 6. Exhibit 13C1-2 contains summarized data regarding Coke's other bottling affiliates (excluding Enterprises) accounted for using the equity method. Discuss the expected effect of: (i) Full consolidation on Coke's financial statements. **Please see attachment for complete details.