Reference no: EM132958765
Project - Calculations must be done in Excel - The financial advisor to EEW Company is evaluating whether to keep company cars for 3, 4 or 5 years. The following information has been gathered:-
A car costs $60,000 and depreciation is 20% pa straight-line.
Cash expenses are $15,000 per year for the first 2 years, $20,000 in year 3, $30,000 in year 4 and $40,000 in year 5.
The salvage value is expected to be $30,000 after 3 years, $25,000 after 4 years and $15,000 after 5 years.
The after-tax required rate of return is 8% pa and the tax rate is 30%.
Required - Prepare an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones.
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Prepare the necessary ledger accounts in the books
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Journalize the entry to record the issuance of the bonds
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What should be basic and diluted earnings per share
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How many shares of stock will be outstanding after the split
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Prepare analysis to decide whether company cars should kept
: Prepare an analysis to decide whether company cars should be kept for 3, 4, or 5 years before being replaced with new ones
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Briefly describe the current updates of the case project
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How much is the final settlement to sun
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How much must the partnership earned during the year
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Calculate the wacc as per book value weights
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