Diploma In Accounting Program
BUSI 370: Business Finance Section 201
Assignment #3 Capital Budgeting Case Study
Chapter 13 Capital Budgeting, Risk Considerations, and Other Special Issues
Due date: March 14, 2016 11:59 pm Turnitin
Chapter 13 is an introdu
i. CHAPTER 14 * ﬁrst
CASH FLOW ESTIMATION AND CAPITAL
BUDGETING DECISIONS
INTRODUCTION '
Capital budgeting deals with investments in projects that are expected to generate returns for more
than one year. This involves spending cash (investing in a project
BUSI 370 ASSIGNMENT #4
A company is considering building a new and improved production facility for one of its existing
products. It would be built on a piece of vacant land that the firm owns. This land was acquired
four years ago at a cost of $500,000;
ASSIGNMENT #1 (15 marks) Name (Last, First):
Student No.: Section:
USE 4 DECIMAL PLACES (rounded)- i.e., 1.2345% or .6789- for intermediate
calculations and round your final answer to two decimal places. For amounts involving
dollars and cents, use two de
CHAPTER 19 8: “HANDOUT” [VISTA] November “VS, 2.312.
LONG-TERM DEBT (BONDS)
Debt is a CONTRACTUAL LlABiLlTY— i.e., interest MUST be paid. IF lNTEREST IS NOT
PAED THERE WILL BE “LEGAL CONSEQUENCES”. The actual bond contract is cailed an
indenture and it sp
ASSIGNMENT #1 (15 marks)
Name (Last, First):_
Student No.:_ Section:_
USE 4 DECIMAL PLACES (rounded) i.e., 1.2345% or .6789- for intermediate
calculations and round your final answer to two decimal places. For amounts involving
dollars and cents, use two
BUSI 293
Cheung, Calvin
32195117
Assignment #3
[P7-1]: Applying Revenue Principles (For most merchandisers and manufacturers, the required
revenue recognition point is the time of shipment/delivery of goods. For service companies, its the
time services we
|j'| SAUDER
School of Business
Diploma In Accounting Program
Busi 370: Finance
Fall 2014 (Section 101: Wednesdays 6:30-9:30 in HA 345)
Instructor: Aziz Rajwani
Office: HA 351 [3 oor Classroom level not 3 oor Office levei]
Office Hours: Mondays, Wednesdays
NOTICE FINAL EXAM
DATE: Monday, August 20th from 6:30 9:30
LOCATION: Henry Angus 098
WE WILL MEET IN Henry Angus 098 ON Sunday, August 19 FROM Noon-3 pm
(NOT 3-6 pm) FOR QUESTION/ANSWER SESSION. PLEASE BRING THE
FINAL QUESTIONS AND OTHER RELEVANT MATERIAL
Busi 370 Midterm Stuff
The midterm exam is on Thursday, August 2 (6:30-8:45; 135
minutes) in HA 098.
Please arrive a few minutes early.
We will have a question and answer session from 12-3 pm
(NOT 3-6 pm) on Sunday, July 29th in HA 098. Bring your class
3%: big CIcUiS't‘LD’X om Qmak -
CHAPTER 16 - LEASING tum. 21, am;
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INVESTMENT DECISION: The firm has decided to acguire eguipment/machinery' based on NPV > 0_
FINANCING DECISION: Should the firm buy & borrow or lease the equipment/machinery.
ASSIGNMENT #1 (15 marks)
ON AN EXAM, TIME MANAGEMENT IS VERY IMPORTANT. THUS, EXPLANATIONS, IF
ANY, SHOULD BE VERY SHORT. JUST SHOW YOUR WORK.
Question 1 (6 marks)
(a) (3 marks)
N
I/YR
PV
PMT
FV
30
82=4
300,000
= 17,349.03
The choices are to take $300,000
CHAPTER 13 I
EQUIVALENT ANNUAL COSTS (“EAC”/“EANPV”)
The next problem we consider involves choosing among different possible systems or
eguigment with different lives.
We assume that: (1) the possibilities under consideration have diﬁ‘erent economic lives
BUSI 370 ASSIGNMENT #6
Question 1 (4 marks)
You are evaluating two different pollution control devices:
(a) A filtration system which costs $1.1 million to install and $60,000 annually to operate. It
would have to be replaced every five years.
(b) A preci
Markers Comments
Question 4
Some students misinterpreted the given information. Market price of risk means Rm Rf,
which is 6%. Some students thought market price of risk means Rm only, which lead to
the wrong calculation. This mistake is often carried ov
Busi 370 Midterm Stuff
The midterm exam is on Friday, October 31st (6:30-9:30; 180 minutes) HA 098
(go downstairs after you enter the building). Please arrive a few minutes early.
The exam is approximately 2.5 hours, but you will be given 3 hours.
We wi
Rig ijes‘cion 220 Famed jams Leases
tr GHAPTER 20 — COST OF
INTRODUCTION
Capital budgeting decisions require an accurate estimate of the required rate of return or cost of
capital.
BASIC CONCEPTS
There are two fundamental ways of looking at a firm: _
1. F
CHAPTER 13
CAPITAL BUDGETING AND RISK CONSIDERATION
INTRODUCTION
Investors and managers are generaily risk-averse. Forecasting errors associated with groiecting
future cash flows for capital budgeting projects are typically greater than 10%. Given the
com
BUSI 370 ASSIGNMENT #7
USE 4 DECIMAL PLACES (rounded) - i.e., 1.23% or .0123.
1.
The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower
Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a
new reta
BUSI 354
Summer 2009
Problems on Effective Use of Capacity
Question 1
The Wellesley Corporation makes printed cloth in two operations, weaving and
printing. Direct materials costs are Wellesleys only variable costs. The demand
for Wellesleys cloth is very
ASSIGNMENT #3 (20 marks)
Name (Last, First):_
Student #:_ Section:_
Take intermediate calculations to four decimal places and show your final answer to
two decimal places.
1.
A portfolio consists of two stocks: (6 marks)
Stock
Expected Return
Standard Dev
BUSI 370 - REVIEW SESSION - TIME VALUE OF MONEY
Reviewglterest Rates
1. Interest rates are ALWAYS a hog/Jag . (unless indicated otherwise). ALL interest
rates are £5 UNLESS M" 544 g "2% {g g: H
OR . .
2. When convertin inter st rates from shorter/longer p
ASSIGNMENT #2 (20 marks)
Name (Last, First):_
Student No.:_ Section:_
Take intermediate calculations to four decimal places (e.g., 1.2345%) and show your final
answer to two decimal places (e.g., $123.45 or 1.23%).
1. (a)
Suppose a 10 percent coupon, $1,0
ASSIGNMENT #2
Question 1
(a)
N
10 x 2 = 20
I/YR
= 3.5823
YTM = 3.5823% x 2 = 7.1646%
(b)
PV
1,200
PMT
1,000 x .1 x 1/2 = 50
FV
1,000
The yield MUST be expressed on an ANNUAL basis.
Since question uses the term effective yield, the investor truly wants to
ASSIGNMENT #3 (20 marks)
Name (Last, First):_
Student #:_ Section:_
Take intermediate calculations to four decimal places and show your final answer to
two decimal places.
1.
A portfolio consists of two stocks: (6 marks)
Stock
Expected Return
Standard Dev
BUSI 370 ASSIGNMENT #5
Question 1
A company has two projects to choose from with the following annual after-tax cash flows:
Project A
Investment (today)
Investment (Year 1)
Years 28
$700,000
$400,000
$600,000
Project B
Investment (today) $1,600,000
Years
BUSI 370 ASSIGNMENT #7
USE 4 DECIMAL PLACES (rounded) - i.e., 1.23% or .0123.
1.
The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower
Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a
new reta
BUSI 370 ASSIGNMENT #4
S ML wr
products. It would be built on .= niece of vacant land that the rm owns. his land was acquired
@ta cost '$ I,I00; it hasamlue o
be erected for $600 000. a Inery (equipmen I 00 nee- bought. The
company wihe construction of th
Busi 370 Midterm Stuff
The midterm exam is on Thursday, July 27th (6:30-9:30; 180 minutes) in
ESB 1012. Earth Sciences Building, 2207 Mail Mall. [Henry Angus is on the
same street, 2053 Main Mall]
https:/students.ubc.ca/campus-life/organizing-campus-even
NOTICE FINAL EXAM
DATE: Tuesday, August 15th from 710 pm
LOCATION: HENRY ANGUS 492
We will have a Question/Answer/Review session on SATURDAY morning from
11:30 to 2 in our normal classroom (HA 343). I will get DAP to book our normal
room; however, if it i
Capital Cost Allowance (t_3_CA) _ .
. CCA' IS the amount of depreciation law @rposes (NOT depreciation or amortization
- expense for ACCOUNTl . :4:- Mposes) e Income Tax Act (_ITA") will allow for tax
0' purposes. A company mellowed to DEDU _AmortizationI
Course
Coverage
for CPA
Programs
University of British Columbia (DAP)
Students who are missing one or more of the required courses for direct admission into
the CPA Professional Education Program (CPA PEP) may consider completing equivalent
coursework at