17 Using the figure below, calculate the percentage of revenue to the lender based on the monthly construction draw schedule. The project assumes a discount rate of 10%, and is for a 25-acre tract of land outside Lexington, KY. Construction Sales Revenue Month Draw (Lot Sales) 01234567899 509,600 0 327,600 0 327,600 0 327,600 0 109,200 226,100 109,200 226,100 109,200 226,100 0 455,525 0 455,525 0 455,525 0 455,525 The % of revenue to the lender is O.137.4% 72.8% 131.2% 76.2%

GinebraCorporation recognizes construction revenue and cost using the percentage of completion method. During 2021, a single long-term project was begun which continued through 2021. Information on the project follows:                                                               2021.           2022 Partial billing on contract                1,000,000.      4,200,000 Accounts receivable                       1,000,000       3,000,000 Construction cost                           1,050,000       1,920,000 Construction in progress                1,220,000        3,640,000 What is the gross profit recognized from this long-term construction contract in year 2021 and 2022, respectively?          2021          2022 A.220,000.   2,280,000 B.170,000.   500,000 C.220,000.   1,000,000 D.170,000.   1,280,000

Problem 1. Jhun Co. recognizes construction revenues and expenses using the percentage of completion method. During 2019, a single long-term contract was started, which continued through the year 2020. Information the project follows: 2019 2020 P 100,000 105,000 122,000 Account receivable on contract P 300,000 Construction expense Construction in progress 192,000 364,000 Partial billings on contract 100,000 420,000 Profit recognized in 2019 should be? Profit recognized in 2020 should be?

A current highway project is estimated to have an average of $1,000,000 in annual maintenance costs upon completion. What is the capitalized equivalent of the perpetual annual maintenance costs for an account earning 6% annual interest?

Hh1. In 2020, Solid Construction Co. (SCC) began work on a two-year fixed-price contract project. SCC uses the percentage-of-completion method to account for such projects and provides you with the following information (dollars in millions): ACCOUNT RECEIVABLE (FROM CONSTRUCTION BILLINGS) $37.5 ACTUAL CONSTRUCTION COSTS INCURRED IN 2020 $135 CASH COLLECTED ON PROJECT DURING 2020 $105 CONSTRUCTION IN PROGRESS, 12/31/2020 $207 ESTIMATED PERCENTAGE OF COMPLETION DURING 2020 60% How much cash remains to be collected by SCC on the project?

A general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years and be sold for 10,000. i = 6% for the loan with monthly payments. What is the depreciation allowance for the third year using MACRS? O 19466 O 894 21774 O 26971 O 13440

In an energy systems installation, following financial requirement was identified. Capital cost of equipment and installation - $ 150,000 Recurrent cost of maintenance Replacement of parts Life time of the system Income through energy generation i. iii. -$5,000 per year -$4,000 per year - 12 years - $ 22,000 per year Calculate the payback period of the system. If the scarp value of the equipment is $ 5,000, determine is the net profit expected to be collected for the investment? Explain how this profit is affected by "cost of money" or "interest". No calculations needed.

Consider the project balances in the table below for a typical investment project with a service life of four years. An Project Balance - $13,000 - $13,000 - 11,500 CO n 0 1 2 3 4 - 2,425 (a) Determine the interest rate used in computing the project balance. The interest rate is %. (Round to the nearest whole number.) - 9,500 - 8,500 100

Optimum Properties Corp. is considering the construction of a 50-unit condominium near the University Belt area. The 15-year investment study shows the following data: Disbursements Revenue Land P8000 000.00 Land, after 15 yrs P43 000 000.00 Building 25 000 000.00 Bldg, after 15 yrs 8600 000.00 300 000.00 Maintenance/yr Insurance & Tax/yr Rent/unit-yr 120 000.00 1.2% With an estimated occupancy rate of 92% at all times, validate the acceptability of the project using the IRR method. The company applies a 15% MARR on its investments (Ans. Project is acceptable, 15.7%)

Optimum Properties Corp. is considering the construction of a 50-unit condominium near the University Belt area. The 15-year investment study shows the following data: Disbursements   Revenue   Land P8 000 000.00 Land, after 15 yers P43 000 000.00 Building 25 000 000.00 Bldg, after 15 yers 8 600 000.00 Maintenance/yr 300 000.00 Rent/unit-yr 120 000.00 Insurance & Realty Tax/yr 1.2%     With an estimated occupancy rate of 92% at all times, validate the acceptability of the project using the IRR method. The company applies a 15% MARR on its investments. (Ans. Project is acceptable, 15.7%)