Your storage firm has been offered ​$96 comma 300 in one year to store some goods for one year. Assume your costs are $ 96 comma 300​, payable​ immediately, and the cost of capital is 8.8 %. Should you take the​ contract?

Consider a forward contract written on 50 tonnes of zinc, a metal that is currently trading at $1,000 per tonne in the cash or spot market. Contract settlement is by making or taking delivery of 50 tonnes of zinc on contract settlement date. Zinc storage costs are $12 per tonne per month, payable at the end of each month, and the risk-free rate is 3% per annum on a continuously compounded basis. Question: Calculate the theoretical price of a zinc forward contract with three months to settlement.

Repayments of $1000 per month on the 10-year loan taken to finance the warehouse is  ____ cost, which should _____ in the capital budgeting analysis if the project is to use this warehouse as the storage facility.  Group of answer choicesan overhead expense, be includeda financing cost, not be includeda sunk cost, not be includedan opportunity, be included

ABC Ltd signed a 4-year contract with Comp Ltd for the use of a customised machinery on 1 July 2022.ABC Ltd intends to return the asset at the end of the lease term. The leased machinery meets the criteria of a leased asset in accordance with AASB16 Leases. The following information shows the lease terms: Lease term (non-cancellable)4 yearsExpected useful life of the machinery6 yearsExpected fair value of the machinery at the end of lease term$30 000Residual value guaranteed$50 000Bargain purchase price at the end of lease term$60 000Net initial directly attributable costs (paid at 1 July 2022)$8 000Annual lease payment (paid in arrears) $70 000Interest rate implicit in the lease10% p.a. Required:Which journal entries that ABC needs to record on 1 July 2022 in relation to the lease contract?

On January 1, Year One, Green Company leases a machine for four years. Because Green is a relatively new business and is struggling with its cash flows, the lessor sets the payments as $10,000 per year for the first two years and $20,000 for the last two years. These payments were computed based on an implicit interest rate of 10 percent per year. The contract does not meet any of the five criteria to be reported as a finance lease. What amount of expense should Green recognize in Year Two?

Shelton Co. purchased a parcel of land six years ago for $869,500. At that time, the firm invested $141,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $921,000. What value should be included in the initial cost of the warehouse project for the use of this land?