Swimmers Co. operates a set of water parks with leisure facilities for families in Aqualandia. During January 20X1, Swimmers acquired a boat for organizing boat trips across the river Aquatica. Boat trip business went very well since then, however, competitor Royal Cruises decided to spread its business to the same location. At the end of 20X3, Swimmers Co. estimated that revenues from boat trips will go down by 12% as a result of new competitor. Managers adjusted projection of cash flows from boat during its remaining useful life of 7 years based on most recent budgets, all available supporting information and economic conditions surrounding boat business. These projections are justifiable for 5 years. Cash flows for years beyond 20X8 represent management's best estimate (refer to table below). Managers believe that at the end of boat's useful life, boat will be sold for 20 000 EUR (not included in cash flow projections below). According to management, appropriate pre-tax discount rate reflecting risks associated with boat but excluding inflation is 5% p.a. Cash flow projections are inflated by assumed inflation rate of 2% p.a.
Required: Calculate boat's value in use

Answers

Answer 1

The Swimmers Co.'s Boat's value in use (net present value) is Eur 321,221.

Data and Calculations:

Pre-tax discount rate = 5% p.a., excluding inflation

Inflation rate = 2% p.a.

Inflated discount rate = 7% (5% + 2%)

Salvage value = Eur 20,000

Projected cash inflows:

Year           Cash Inflows    Discount Factor     Discounted Cash flows

20X4         Eur 72,000              0.935                     $67,320

20X5        Eur 69,000               0.873                      60,237

20X6        Eur 64,000               0.816                      52,224

20X7        Eur 59,000               0.763                      45,017

20X8       Eur 52,000               0.666                      34,632

20X9       Eur 45,000               0.623                      28,035

20X10     Eur 38,000               0.582                        22,116

20X10     Eur 20,000              0.582                         11,640

Total discounted cash flows                         Eur 321,221

Thus, the Swimmers Co. will calculate the boat's value in use as Eur 321,221, taking into account all the discounted cash inflows.

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Related Questions

Mobile task management technology is useful in Multiple Choice viral marketing programs. buy-online-and-pick-up-in-store purchases. direct marketing channels. franchises. direct store deliveries.

Answers

There are several forms of marketing channels. Mobile task management technology is useful in buy-online-and-pick-up-in-store purchases.

Mobile Task Manager (MTM) is known as a good rated customizable app that allows people to manage service request / work order.

Marketing channel management  is also known as supply chain management that uses different kinds of  approaches and techniques firms employ to efficiently and effectively integrate their suppliers.

Task management is simply known as the method of monitoring your project's tasks through their different stages from start to finish.

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To compete on the basis of price

Answers

Answer:

I believe it's competitive-based pricing.

Explanation:

Sorry if it's wrong though.

Question 8

A-Rod decides to open up his own baseball equipment company, A-Rod's Best Baseball Equipment, Inc., based in Florida. He wants
to expand his business to other states, including New Jersey. He advertises in New Jersey, sets up three stores there, and has a
significant sales force there. Little Pete, who is ten years old, swings a bat manufactured and sold by A-Rod at a fastball thrown by
Joey. The defective bat breaks hitting Little Mighty Moe in the leg causing a fracture and severe bruises. Moe's parents sue A-Rod's
company in New Jersey state court for damages, New Jersey has jurisdiction over A-Rod's company because there are

A. sufficient minimum contacts with the state by A-Rod's company that it would be fair for A-Rod to defend the lawsuit in New
Jersey
B. the court ordered the suit to be tried in New Jersey
C. Mighty Moe was born in Jersey City
D. none of the above

Answers

New Jersey has jurisdiction over A-Rod's company because the "Mighty Moe was born in Jersey City."

This is based on the idea that State Court has general or broad jurisdiction over any legal issues except those not allowed by the state law, which is then directed to the Federal court.

In this case, given the available options, the state of New Jersey has jurisdiction over A-Rod's company because the "Mighty Moe was born in Jersey City."

Generally, a state court has general jurisdiction over any legal issues involving citizens from that particular state or company conducting business in that state.

Thus, another reason New Jersey has jurisdiction over A-Rod's company is that the company conducts its business in the state.

Hence, in this case, it is concluded that the correct answer is option C. "Mighty Moe was born in Jersey City."

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Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2022. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Year 1: 15.500
Year 2: ?

Answers

Answer:

15,500 and 7,750

Explanation:

The annual depreciation for year 1 and year 2 under the declining-balance method is 15,500 and 7,750 respectively.


How do you compute the Annual depreciation rate under the declining-balance method?

[tex]\text{Rate}= (31,000-4000)\\=29,000 \\\text{Rate}=29,000/4\\=7,250\\\text{Rate}=7,250/29,000\\=0.25\\ \text{Rate}=0.25 \text{ x }2\\= 50 \text{percent or} 0.50\\\text{Year 1} = 31,000 \text{ x }0.50\\\text{Year 1} =$15,500\\\text{Year 2} = (31,000 - $15,500)*0.50\\\text{Year 2} =$ 7,750[/tex]

For more information about the depreciation method, refer below

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2. What are some reasons the seller was willing to sell the product at this price?​

Answers

To get it out of His hands

Explanation:

Just tired and ready to let it go

Maxwell Manufacturing issued $430,000, 12-year, 8% bonds at 105.75. What is the total amount of interest expense that will be recorded over the life of these bonds

Answers

The total amount of interest expense that Maxwell Manufacturing will record over the life of the bonds is $388,075 ($412,800 - $24,725).

Data and Calculations:

Bonds' Face Value = $430,000

Maturity period = 12 years

Coupon Interest Rate = 8%

Issuance rate =105.75

Bonds Proceeds = $454,725 ($430,000 x 1.0575)

Bonds Premium (to be amortized over 12 years) = $24,725 ($454,725 - $430,000)

Annual cash payments to bondholders = $34,400 ($430,000 x 8%)

Total cash payments to bondholders = $412,800 ($34,400 x 12)

Thus, Maxwell Manufacturing will record the total amount of interest expense of $388,075 over the life of the bonds.

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How to become a firefighter. I want to become one.

Answers

Answer:

-valid driver's license

- 18 years old or more (for  younger than 18 you can look into limited involvement as a junior firefighter.)

- At least a high school diploma or GED.

- pass the physical ability test.

- Pass the written exam

- pass the interview

-You’ll still need to attend a department’s academy once hired

(may be differnt depending on your state, country, etc)

<3

what is reaction search international? A. a recruiter website B. a referral C. a social media website D. a virtual job fair​

Answers

Answer:

A recruiter website

Explanation:

Its a recruitment site because the specialize in searching and recruiting members

Answer: Well it cant be a social media website, it also is not a job fair. Therefore, it is (B) A referral.

Explanation: Good luck!

The common stock of Royal Ranch House is selling for $18.11. The firm pays dividends that are expected to grow at a rate of 5.30% indefinitely. Your investment horizon is 5 years. What do you estimate the price of Royal Ranch House stock will be at that time

Answers

The estimate of the price of Royal Ranch House stock at the end of the fifth year will be $23.45.

Current price of the common stock = $18.11Growth rate = 5.30%Time = 5 years.

Therefore, the estimate the price of Royal Ranch House stock by the fifth year will be:

= Current price × (1 + 5.30%)⁵

= $18.11 × (1 + 0.053)⁵

= $23.45

Therefore, the correct option is $23.45.

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Any part of a machine which————
while in operation can cause a hazard.
O a) Stops
b) Starts
c) Moves
d) Adjusts

Answers

c) Moves
You’re welcome! :)

how many cars does rick ross have?

Answers

He owns over 100 collectible cars

v91. If a U.S. dollar purchases 4 Argentinean pesos, and a gallon of milk costs $3 in the U.S. and 6 pesos in Argentina what is the real exchange rate

Answers

The real exchange rate is 1 dollar = 2 Argentine pesos

The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:

1 Dollar is equivalent to 4 Argentine pesos

However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:

3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.

In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.

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Fixed budget performance reports compare actual results with the expected amounts in the fixed budget. true or false

Answers

Answer:true

Explanation:

An Office Manager uses a Periodic Review Inventory System: they check the inventory in their Office Supply Closet once every 10 days, placing an order with their supplier depending on the inventory level in the Supply Closet. The operator has set a restocking level of 400 boxes of paper clips for their Supply Closet. This week, the manager has counted 160 boxes of paper clips in the closet. How many boxes of paper clips will the manager order from their supplier

Answers

Based on the restocking level and the amount of paper clips in the closet, the manager will order 240 boxes of paper clips.

This question deals with the Order Quantity which is calculated as:

= Restocking order level - Current Inventory level

Restocking order level = 400 boxes of paper clips

Current inventory level = 160 boxes of paper clips

Order quantity:

= 400 - 160

= 240 boxes of paper clips

In conclusion, the manager will order 240 boxes.

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The contract is only valid if it is agreed on in written form. 

A. True
B. False

Answers

Answer:

falsw

Explanation:

The answer is false

.................lol

Answers

Answer:

AND SHE SAID , SHE SAID , SHE SAID SHE'S FROM HAWAII, DO YOU KNOW HOW TO SPEAK CUTE IN JAPAN? KAWAII!


Think about the following situation and tell me what
things could possibly go wrong. Please provide at
least 2 possibilities.
A job interview

Answers

If you lie about your age then show him your real age. Also if you forget your id or social security number that’s shows that your not ready at all times for the job

What is the current price for a bond worth $3,500 that has a price quote of 92?
Current price for the bond

Answers

Answer:

3220

Explanation:

3500 x 0.92

Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000. The corporation's current ratio is closest to:

Answers

The corporation's current ratio is closest to 3.42

Current ratio is computed as ;

= (Working capital + Current liabilities) / Current liabilities

=   (33,000 + 80,000) / 33,000

= 113,000 / 33,000

= 3.42

Hence, given that Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000 , its current ratio would be closest to 3.42

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.What is the term for "The body of laws, rules, regulations and customs that applied to the relations between the members of society" Statute Religious rules Order​

Answers

Answer:order

Explanation:

What was the Dam Blue Stuff?

Answers

Answer:

Water?

Explanation:

What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change in autonomous aggregate expenditures is 3?

Answers

When the change in equilibrium level of real GDP equals 9 and change in autonomous aggregate expenditures equals 3, then, the multiplier will be 3.

Multiplier helps to measures how much a changes is in response to a change in other variable.

Given Information

Change in equilibrium level of GDP = 9

Change in autonomous expenditure = 3

The formula to be deployed is Multiplier = {Change in equilibrium level of GDP / Change in autonomous expenditure}

Multiplier = (9 /3)

Multiplier = 3.

Therefore, when the change in equilibrium level of real GDP in the aggregate expenditures model is 9 and the change in autonomous aggregate expenditures is 3, then, the multiplier will be 3.

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Do you agree with the EU's threat to use trade agreements as a weapon in the fight against low-cost subcontracting? If governments were to regulate the number of subcontractors that can be involved in the production of a product, do you believe businesses that outsource their work would be more prone to respond ethically to catastrophes and to working conditions in general? •

Answers

Trade agreement is known to influence companies in different ways. I agree with EU’s threat to use trade agreements as a weapon in the fight against low-cost subcontracting.

Businesses that outsource their work would not be more prone to respond ethically to catastrophes because Outsourcing by firms mount pressure on the business to monitor and maintain high-quality standards.

This can be a  way to handling the issue with the developing countries. Tariffs on trade was once used by the European Union.

I believe that trade agreements are good tools that can fight against poor labor conditions that is prevalent developing nations.

The regulation used can make firms to have a more concentrated and vertical supply chain that is manageable and accountable.

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Describe the relationship between economic growth and a nation’s standard of living.

Answers

Answer: hope this helps.

Broadly shared growth in per capita GDP increases the typical American's material standard of living. ... Productivity growth allows people to achieve a higher material standard of living without having to work more hours or to enjoy the same material standard of living while spending fewer hours in the paid labor force.

Explanation:

Historically, demand has averaged 40 units with a standard deviation of 20. The company currently has 79 units in stock. What is the Service Level

Answers

The company with 79 units in stock have a Service Level of 97

The z score is used to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:

[tex]z=\frac{x-\mu}{\sigma} ;\\\\where\ x=raw\ score, \mu=mean,\sigma=standard\ deviation[/tex]

Given that: μ = 40, σ = 20, hence for x = 79:

[tex]z=\frac{79-40}{20} =1.95[/tex]

From the normal distribution table, P(z < 79)  = P(z < 1.95) = 97.44%

Hence the company with 79 units in stock have a Service Level of 97

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Tại một doanh nghiệp có tình hình sau:
- Doanh thu của doanh nghiệp từ tháng 1 đến tháng 9 năm báo cáo là
1.500.000.000 đồng.
- Số dư của các khoản TSLĐ sử dụng cho hoạt động sản xuất kinh doanh vào đầu
năm báo cáo là 123.000.000.000 đồng, vào ngày 30/9 năm báo cáo là 127.000.000 đồng,
và số TSLĐ sử dụng vào cuối năm báo cáo được tính theo số TSLĐ đang có vào ngày 30/9
năm báo cáo.
- Số dư của các khoản nợ phải trả bổ sung thường xuyên hợp pháp cho nhu cầu vốn
lưu động vào đầu năm báo cáo là 24.000.000 đồng; vào ngày 30/9 năm báo cáo là
26.000.000 đồng.
- Năm kế hoạch, doanh nghiệp dự kiến sản xuất 100.000 sản phẩm với đơn giá bán
(chưa có thuế GTGT ) là 24.000 đồng.
- Dự kiến tốc độ luân chuyển vốn lưu động năm kế hoạch sẽ tăng 10% so với 3 quý
đầu năm báo cáo.
YÊU CẦU:

1. Xác định nhu cầu VLĐ năm kế hoạch.

Answers

Answer:

222222222222222222222222222

Tammy has had a lot of success investing in preferred stocks, she wants to invest in other assets that are very similar to preferred stocks. What
options would BEST match her investment preferences?
OA common stocks and corporate bonds
OB real estate and common stocks
OG government bonds and corporate bonds
OD mutual funds and government bonds
Reset
Next
entum. All rights reserved
an out

Answers

The BEST options to match Tammy's investment preferences are A. common stocks and corporate bonds.

 

Preferred stock is similar to common stock, except that it does not exercise voting rights. It enjoys priority over common stock in the payment of dividends. With its fixed dividend rate, it is like a bond's interest with a fixed rate.

 

Though the preferred stock is not as secure as corporate bonds, it is a high-breed between common stocks and corporate bonds.

 

Thus, the best options that combine the features of a preferred stock investment are investments in common stocks and corporate bonds.

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Answer:

what the other dude said

Explanation:

Last month Nellie Jacobson's divorce became final. As part of the settlement, she received $150,000. She would like to invest in mutual funds, but since
she is 62 years old, she is concerned with the safety of her "nest egg." Which of the following mutual funds would you recommend?
Multiple Choice
Growth fund
Small cap fund
High-yield bond fund
International fund
DO
(Prey
1 of 15
Next >

Answers

The mutual funds that should be recommended to Nellie Jacobson is E. Short-term U.S. government bond fund.

The main point is that Nellie is concerned with the safety of her funds, she requires a more secure mutual fund.  This is offered by the U.S. government bond fund.

Her investment should not be made in the Growth Fund, Small cap fund, high-yield bond fund, or international fund.  These funds are riskier than the U.S. government bond fund.

Data:

Amount to be invested = $150,000

Age of investor = 62 years

Level of safety = highest

Question Completion Options:

A. Growth fund

B. Small cap fund

C. High-yield bond fund

D. International fund

E. Short-term US government bond fund

Thus, I would recommend option E for Nellie Jacobson.

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Which of the following term is used to name a State Organ? Executive United Nations Council​

Answers

Considering the available options, the term used to name a State Organ is "Executive."

This is because there are three organs of the government, whether state, federal or local.

Each of the three organs is the following:

Legislature,Executive,Judiciary.

Each of the organs serves or performs different functions. State Executive enforces laws made by the Legislature, while the Judiciary interprets laws.

Hence, in this case, it is concluded that the correct answer is "Executive."

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What are the main types of contracts if you decide to outsource? What are the advantages and disadvantages of each? g

Answers

Answer:

Time-and-materials contracts, which bill the project at an agreed-upon rate based on actual resources used and time spent by developers.

Fixed-price contracts, which bill the project at a flat rate, regardless of the time spent or resources used.

Explanation:

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