Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $\$6$ million. The machinery can be sold to the Romulans today for $\$5.1$ million. Klingon’s current balance sheet shows net fixed assets of $\$3.4$ million, current liabilities of $\$895,000$, and net working capital of $\$235,000$. If the current assets and current liabilities were liquidated today, the company would receive a total of $\$1.15$ million in cash. What is the book value of Klingon’s total assets today? What is the sum of the market value of NWC and the market value of fixed assets?

Why would the use of the cash payback period for analyzing the financial performance of theatrical releases from a motion picture production studio be supported over the net present value method?

Use the information presented for Lakeside, Inc., in the earlier exercise and your calculation of the net present value of the new production equipment.

Required: Calculate the present value ratio of the new production equipment, and comment on the internal rate of return of this investment relative to the cost of capital.

Apply the chi-square goodness-of-fit test, using either the critical-value approach or the P-value approach, to perform the required hypothesis test. A gambler thinks a die may be loaded, that is, that the six numbers are not equally likely. To test his suspicion, he rolled the die 150 times and obtained the data shown in the following table.

$$\begin{array}{l|cccccc} \hline \text { Number } & 1 & 2 & 3 & 4 & 5 & 6 \\ \hline \text { Frequency } & 23 & 26 & 23 & 21 & 31 & 26 \\ \hline \end{array}$$

Do the data provide sufficient evidence to conclude that the die is loaded? Perform the hypothesis test at the 0.05 level of significance.

A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied using a five-year life and a zero salvage value. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.)

This calculation determines profitability or growth potential of an investment, expressed as a percentage, at the point where NPV equals zero A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. future value method

Why would the use of the cash payback period in analyzing the financial performance of theatrical releases from a motion picture production studio be supported over the net present value method?

Use the approach of your choice to solve this quadratic equation.

$$5 x^2-22 x=-8$$

Solar Energy, Inc., is issuing 500,000 shares of stock. Each share will be sold at $45. The underwriting commission is 3% of the value of the stock. The other expenses are expected to be 0.6% of the value of the stock. If all the shares of stock are sold, what net proceeds will Solar Energy receive?

_______ is the single force resulting from the summation of all forces acting on an object at a given time. A. Net mass, B. Net torce, C. Net torque, D. Net weight.

Both U.S. GAAP and IFRS require the immediate recognition in net income of unrealized gains and losses on derivatives classified as fair value hedges. Both U.S. GAAP and IFRS delay recognition in net income of unrealized gains and losses on derivatives classified as cash flow hedges. What is the likely rationale for these different treatments?

Describe an advertisement that is clearly based on a situational appeal. Write your evaluation of the effectiveness of this approach.

Find the (a) net proceeds and (b) cost per share of the underwriting expenses. The value of CoMar stock is $1,750,000. The underwriting commission is 10%. The total of other expenses is$521,640 and 850,000 shares are sold.

Verify that the net price calculated in the exercise discussed before is correct by recalculating the net price using the net price rate.