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SCENARIO

Mason Jones earns $800.00 per week. In May he received a work-related bonus of $800.00. He compared his regular weekly cheque with the bonus cheque and noticed the Canada Pension Plan contribution was a different amount. He emailed the Payroll Department asking why, when the gross earnings were the same.

Write a memo to Mason explaining the difference in the amount withheld for Canada Pension Plan contributions.

S & S Industries is considering an investment in a proposed project which requires an initial expenditure of $100,000 at t = 0. This expenditure can be depreciated at the following annual rates:

Year Depreciation Rate

1 20%

2 32

3 19

4 12

5 11

6 6

THe project has an economic life of six years The project's revenues are forcasted to be $90,000 a year. The project's operating costs (not including depreciation) are forecasted to be $50,000 a year. After six years the project's estimated salvage value is $10000. The company's WACC is 10%, and its corporate tax rate is 40%. What is the project's net present value (NPV)?

True or False: AB = BA for any two square matrices A and B of the same size. 

You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of the $2,700,000 purchase price. The monthly payment on this loan will be $13,400. What is the APR on this loan? The EAR?

Find a non-zero 2 x 2 matrix A such that