Lander company has an opportunity to pursue a capital budgeting project with a five-year time horizon. after careful study, lander estimated the following costs and revenues for the project: cost of equipment needed $ 430,000 working capital needed $ 80,000 repair the equipment in two years $ 28,000 annual revenues and costs: sales revenues $ 550,000 variable expenses $ 280,000 fixed out-of-pocket operating costs $ 120,000 the piece of equipment mentioned above has a useful life of five years and zero salvage value. lander uses straight-line depreciation for financial reporting and tax purposes. the company’s tax rate is 30% and its after-tax cost of capital is 12%. when the project concludes in five years the working capital will be released for investment elsewhere within the company click here to view exhibit 13b-1 and exhibit 13b-2, to determine the appropriate discount factor(s) using tables. required: 1. calculate the annual income tax expense for each of years 1 through 5 that will arise as a result of this investment opportunity. 2. calculate the net present value of this investment opportunity. (negative amounts should be indicated by a minus sign. round your final answer to nearest whole dollar.)

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: