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Chapter 8 Post-Class Homework
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CHAPTER 8 - Capital Budgeting and Investment Decisions
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Chapter 8 Post-Class Homework
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10
Partially correct
Mark 5.00 out of 6.00
Take me to the text
The Harmony Hotel Corporation is considering replacing its old hot tub with a new one at a cost of $34,000. With the new hot tub, the
company expects to save $4,000 in maintenance costs per year, all cash savings. These savings in maintenance costs represent both an
increase in cash flow and an increase in incremental operating income. The new hot tub has an estimated useful life of 5 years with no
residual value. The company's required rate of return is 6%. The old hot tub has no residual value.
Do not enter dollar signs or commas in the input boxes.
Use the present value tables found in the textbook appendix.
Use the negative sign for negative values.
Round all answers to 2 decimal places.
a) Assume the company wants to recover their initial investment on the new hot tub in five years. Based on the payback method, should the
hotel purchase the new hot tub?
Cash Payback Period:
8.5
years
Should the hotel purchase the new hot tub?:
b) If the ARR method is used, should Harmony Hotel purchase the new hot tub?
ARR:
11.77
%
Should the hotel purchase the new hot tub?:
c) If the NPV technique was used, should Harmony Hotel purchase the new hot tub?
Round your answer to the nearest whole number.
NPV: $
-17150
Should the hotel purchase the new hot tub?:
No
Yes
No
Explanation
a) Cash Payback Period: 8.50 years
Should the hotel purchase the new hot tub?: No
b) ARR: 23.53%
Should the hotel purchase the new hot tub?: Yes
c) NPV: $-17,150
Should the hotel purchase the new hot tub?: No
Partially correct
Marks for this submission: 5.00/6.00.
12/12/23, 11:22 PM
Chapter 8 Post-Class Homework
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The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2020 are as follows.
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Koch Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,000, Land
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Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)
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- Auditing || fall20 Dashboard My courses ACCT4141_iram_fall20 WEEK 7: 25 OCTOBER - 31 OCTOBER Case study 2 Separate groups: 5 My Submissions Case 2 Title Start Date Due Date Post Date Marks Available Case study 2 - Case 2 27 Oct 2020 - 08:00 28 Oct 2020 - 06:00 28 Oct 2020 - 19:00 100 Summary: On Chapters 9, 10, and 11: The YuRaeKa charity was established in 1960. The charity’s aim is to provide support to children from disadvantaged backgrounds who wish to take part in sports such as tennis, badminton, squash, basketball and football. YuRaeKa has a detailed constitution[1] which explains how the charity’s income can be spent. The constitution also notes that administration expenditure cannot exceed 10% of income in any year. The charity’s income is derived wholly from voluntary donations. Sources of donations include: (i) Cash collected by volunteers asking the public for donations in shopping areas, (ii) Cheques sent to the charity’s head office, (iii) Donations…arrow_forwardMy Questions | bartleby b + Camden County College References Chapter 3 Quiz Ha X //camdenccinstructure.com/courses/3788/assignments/35967?module item id=88693 Next> Send to Gradebook < Prev Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) Question 19 -/1 View Policies Current Attempt in Progress A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were: O 95220 equivalent units. O 135300 equivalent units. O 70200 equivalent units. O 85200 equivalent units. eTextbook and Media Attempts: 0 of 1 used Submit Answer Save for Later 11:21 AM 10/4/2019 hp ins prt sc 12 end 11 home f10 delete fg f8 f5 f4 II & num backspace 6 5 lock } { P T U Y home + 96arrow_forward+V My Questions | bartleby b References Chapter 3 Quiz Camden County College camdenccinstructure.com/courses/3788/assignments/35967?module_item id=88693| Next> K Prev Send to Gradebook Submitted to Gradebook, Fri, Oct 4, 2019, 9:34:35 AM (America/New York -04:00) --/1 Question 15 View Policies Current Attempt in Progress Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total materials costs are $91000. How much is the conversion cost per unit? O $17.52. O $4.70. $12.82. O $30.33 eTextbook and Media Submit Answer Save for Later Attempts: 0 of 1 used 11:10 A 10/4/20 hp ins prt sc end home f12 11 DI delete f9 f8 f7 f6 fs 10 + & % num backspace 6 7 lock 5 { P T U Y II 96arrow_forward
- Eat min C e New tab Λ Content xW Quiz 3-MAT-143, section 03F, Fa X + Q A ✩ https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 Viewing Saved Work Revert to Last Response DETAILS MY NOTES You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year. DETAILS MY NOTES Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.) $ DETAILS MY NOTESarrow_forwardA Final Exam - MATH 1330 - Math b Details | bartleby E New tab A https://www.webassign.net/web/Student/Assignment-Responses/submit?dep=254878928tags=autosave#question4023958_1 Sign in 12. DETAILS HARMATHAP12 6.2.009. MYΝΟΤΕS What are the future value and the interest earned if $4000 is invested for 3 years at 8% compounded quarterly? (Round your answers to the nearest cent.) future value 24 interest earned %24arrow_forwardQuestion 7 of 13 - Module One + education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=0db9e60e-b27b-40f9-b0bf-0c88ee4c36ba#/question/6 Module One Problem Set Question 7 of 13 -/4 == Your first internship assignment is to prepare two schedules for Windsor Blue Co., a manufacturing company. You have a file that contains a copy of last year's work for both schedules; you plan to follow the same format as last year, hoping the staff accountant had it right. You also have access to the full set of financials for Windsor Blue, and you can dig further into any of the accounts via the accounting system, too. Here's the information you have pulled, with the same items as last year. DM Inventory WIP Inventory FG Inventory DM purchases DL costs Production supervisor salary Utility costs in production space Depreciation on manufacturing facility and equipment Beginning of Year End of year $9,200 $10,000 21,000 13,000 6,300 8,000 153,000 232,000 56,000 14,000 42,000 វា វាarrow_forward
- I + %06 | + Business started off great the first year that the Golden Wolves Statues started production. Corey realized, however, that the business was seasonal and had peak sales in the fall, during the third quarter, when the students started college and continued through the beginning of the football season. The following information concerns operations for Year 2, the coming year, and for the first two quarters of Year 3. A. Golden Wolves Statue Company is now making only the forward-facing statue with the Alvernia University t-shirt and sells the product for $150/unit. Budgeted unit sales for the next six quarters are as follows (all sales are on credit). Year 2 Quarter Year 3 Quarter 3 4 2. Budgeted unit sales 680 000 009 B. Sales are collected in the following pattern: 75% in the quarter the sales are made, and the remaining 25% in the following quarter. On January 1, Year 2, the company's balance sheet shows $6,500 in accounts receivable, all of which will be collected in the…arrow_forwardHistory Bookmarks Profiles Tab Window Help M Question 2 - Ch 21: Homewor × D2L Classlist - Spring 2024 Intro × New Tab .edu/webwork2/MATH_107_online_Spring_2024/HW_20_Simple_and_Compound_Interest/14 MAA MATHEMATICAL ASSOCIATION OF AMERICA / HW 20 Simple and Compound Interest / 14 Previous Problem Problem List Next Problem HW 20 Simple and Compound Interest: Problem 14 (6 points) What are the effective annual rates for an account paying an annual interest rate of 6% which is compounded: (a) annually? (b) quarterly? % % (c) daily (assuming there are 365 days in the year)? % (d) continuously? % Note: You can earn partial credit on this problem. Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 05/04/2024 at 02:41pm EDT WeBWorK 1996-2022 | theme: math4-green | ww_version: 2.17 | pg_version 2.17 | The WeBWarrow_forward17.39 .. 90 PROBLEMS OF SEMESTER FINAL TEST 2021 Word es Mailings Review View Help O Tell me what you want to do Aa - AaBbCeDd AaBbCcl AaBbCcDe AaBbCcDe AaBt Heading 2 Heading 3 T Normal I No Spac. Headin Paragraph Styles 4.5.6 7 8.. 9. • 10. 11 12. 13. 14. 15.I Thursday : January 21, 2021 --- 80 Minutes 1. In this section we examine three theories of investor preference: The dividend irrelevance theory. The "bird in the hand" theory, the tax preference theory, which theory is the best? What is the different of stock dividends, stock splits, and stock repurchase. 2. In the working capital management, we know about cash conversion cycle model. For problem if average inventories are $3 million and sales are $11 million. If receivables are S 657.535 and sales are S 11 million. Then, if its cost of goods sold are $9 million per year and if its accounts payable average $ 657.535. What is the length of the cash conversion sicle? 3. The ELGRAJO Corporation has capital structure as follow…arrow_forward
- 10:04 Assignment Details ATG-110-20A01: Financial Accounting (Session II Summer 2021) 7474 unread replies.7575 replies. Please read and respond to TIF 12-2 on page 623. Review the rubric to ensure you receive full points for this discussion. Discussion Rubric- 25 points(1)_(3).docx *After you have posted your answers, please reply to three other students' posts. This discussion board was set up so that you will not be able to see others replies until you post your own. Search entries or author Filter replies by unreadUnread Collapse replies TIF 12-2 Issuing Stock 1. ETHICS Lou Hoskins and Shirley Crothers are organizing Red Lodge Metals Unlimited Inc. to undertake a high-risk gold mining venture in Canada. Lou and Shirley tentatively plan to request authorization for 400,000,000 shares of common stock to be sold to the general public. Lou and Shirley have decided to establish par of $0.03 per share in order to appeal to a wide variety of potential investors. Lou and Shirley believe…arrow_forwardWhat is the answer A thru D?arrow_forwardblem Set: ModX * CengageNOWv2 | On x * Cengage Learning B Milestone Two Guidel x G module 5 problem set X ow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=. Lo еВook Show Me How Entries for notes payable Bennett Enterprises issues a $660,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 2 b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. Previous Check My Work 56°F Mostly cloudy ヘ 回。arrow_forward
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