Valuation of fixed assets

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Your investment advisor calls to suggest that you invest in Mexican bonds with a yield of 8.5 percent -3 percent above U.S. Treasury rates. Should you do it? What factors should you consider in making your decision? ...
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You have been provided with the following information zero coupon bonds with $1000 face value. Maturity - semi -annual periods   semi-annual spot rates   1 4.25 2 4.15 ...
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XYZ limited acquired an item of plant at a cost of KSh. 5,000,000. The asset is expected to be used as follows; Yr Hrs. 1 18,000 2 15,000 3 12,000 4 10,000 Depreciation ...
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XYZ limited acquired an item of plant at a cost of KSh 5,000,000. The expected useful life of the asset is 4 years. Depreciation is charged using sum-of digit method. Required : Compute depreciation charged for each of the years. ...
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XYZ Corporation is considering the introduction of a new product.The project will last five years and then be terminated.The company s marginal tax rate is 32%.The company s cost of capital is 18%.The cost of the new plant and equipment for the project is $6,000,000.Shipping and Installati...
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(Learning Objective 2, 3: Measuring profitability based on different inventory and depreciation methods) Suppose you are considering investing in 2 businesses, La Petite France Bakery and Burgers Ahoy!. The 2 companies are virtually identical, and both began operations at the beginning of ...
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Write a short commentary on each ledger account prepared in S1, to enable a nonaccountant to understand their purpose and content. ...
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(Learning Objective 2: Explaining the concept of depreciation) The board of directors of Fiberglass Structures, Inc., is reviewing the 20X7 annual report. A new board member—a wealthy woman with little business experience—questions the company accounta...
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Can you compose the journal entry made by Cadbury Schweppes accountants to write the assets up in value? What would be the credit portion of the journal entry? (HINT: Although you may not know the exact answer, think about it and make an educated guess. Would the credit be to another asset...
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(Learning Objective 1, 6: Plant assets and intangible assets) The following questions are unrelated except that they all apply to plant assets and intangible assets: 1. The manager of Carpet World regularly debits the cost of repairs and maintenance of plant assets to Plant and Equipment. ...

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