On January 1, 2020, Hawkeye Airleased a new airplane for 5years. The expected life of the airplane is 20years. The lease stipulates that Hawkeye Air makes annual payments of $1,085,923 payable at the beginningof each year. Hawkeye Airhas anincremental borrowing rate of 4.3%.Hawkeye Air has an option to renew the lease with a 2% increase in the lease payment. a. How will the lease be classified and how do you know?
b. Calculate the present value of the lease payment.
c. What is the balance sheet impact of the lease at the beginning of the lease (1/1/2020)?
d. What is the income statement impact of the lease for 2020?
e. Identify any effects the lease arrangement and the associated reporting would have on the statement of cash flows for 2020.

Roi analysis using dupont model. charlie? s furniture store has been in business for several years. the firm? s owners have described the store as a ? high-price, highservice? operation that provides lots of assistance to its customers. margin has averaged a relatively high 32% per year for several years, but turnover has been a relatively low 0.4 based on average total assets of $800,000. a discount furniture store is about to open in the area served by charlie? s, and management is considering lowering prices in order to compete effectively. required: a. calculate current sales and roi for charlie? s furniture store. b. assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same roi as they currently earned. c. suppose that you presented the results of your analysis in parts a and b of this problem to charlie, and he replied, ? what

Select the correct text in the passage.which sentences in the given passage explains the limitations of monetary policies? monetary policies - limitationsmonetary policies are set by the central bank to bring about growth in the economy.de can be achieved these policiesw at anden i sca poit would be fair to say that changes in the economy cannot be brought about instantly by monetary po des.monetary policy can only influence not control, economic growththe monetary policy makers do work on sining the perfect balance between demand and supply of money in the economy

What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695