Assume the following information for a capital budgeting proposal with a five-year time horizon:Initial investment:Cost of equipment (zero salvage value)$ 570,000Annual revenues and costs:Sales revenues$ 300,000Variable expenses$ 130,000$ 50,000Depreciation expenseFixed out-of-pocket costs$ 40,000Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.If the company's discount rate is 12%, then the net present value for this investment is closest to:Multiple Choice$281,600.$(181,600).$(281,600).$(101,350).

Capital Budgeting Proposal AnalysisThis activate provides a capital budgeting state of affairs and…

Answered: Assume the following information for a…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

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Direction: If the problem is silent about the overtime premium use the minimum 25%. Half human, half zombie for president manufacturing corp. A newly established business had the following transaction for the 1st month of its operation: A. Purchase of raw materials on account amounting to P650,000 B. Details for computation of payroll for the month are as follows: DIRECT LABOR INDIRECTLABOR SELLING AND ADMINPERSONNEL NUMBER OF EMPLOYEES 30 6 12 RATE PER DAY P600 P800 P500 TOTAL NUMBER OF REGULAR HOURSWORKED 5,280 1,056 2,112 TOTAL NUMBER OF OVERTIME 125 10 0 TAX WITHHELD P0.00 P0.00 P0.00 MANDATORY CONTRIBUTIONS - EMPLOYEE P23,600 P5,320 P9,600 MANDATORY CONTRIBUTIONS -EMPLOYER P43,820 P9,880 P17,820 C. 60% of overtime work is because of rush jobs d. Factory overhead is applied at 80% of direct labor e. Only 90% of raw materials available for use was issued to production (25% indirect materials) f. 20% of total manufacturing cost was still in the work in…
Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…
Identify a suitable example for semi-variable cost from the following? a. Raw material costs b. Land telephone charges c. Property taxes d. Amortization
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs $3,210,000 2,568,000 642,000 504,000 $ 138,000 Pretax income If the company raises its selling price to $320 per unit. 1. Compute Hudson Co's contribution margin per unit. 2. Compute Hudson Co's contribution margin ratio. 3. Compute Hudson Co's break-even point in units. 4. Compute Hudson Co's break-even point in sales dollars. 1. Contribution margin per unit 2. Contribution margin ratio ... Next
Assume the following information for a capital budgeting proposal with a five-year time horizon: Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs This proposal's simple rate of return is closest to: $ 529,000 $ 300,000 $ 130,000 $ 50,000 $ 40,000 Multiple Choice о 25%. 15%. 17%. 19%.
Nanaimo Inn has 60 rooms and expects occupancy to be 70%. The owner wants to earn 10% return on total assets after tax. Total assets: $2,400,000 Income tax rate: 25% Depreciation: straight line (20 years) on assets of $1,600,000 (no salvage) $300,000 Other fixed expenses: Direct costs: $100,000 $200,000 10% on balance owing of $900,000 Annual principal payment Indirect costs Mortgage interest: Mortgage principal: required: $45,000 Room service has an operating loss of $50,000 Calculate the average required room rate using the above information. If the differential between single and double rooms is $12 per night and 35% of the rooms sold are doubles, calculate the single and double room rates.
If the annual dividend per share for EMAX company is $0.48 and the closing price $22.64, then the Stock yield will be: O 6.78% O 6.04% tion 3.18% O 2.12% O 4.66%
A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $15,000,000, with annual upkeep estimated at $150,000 per year. Additional income from tourists (Benefits) of $1,400,000 per year is estimated. The road is expected to have a useful commercial life of 25 years. The discount rate to evaluate this project is 4% per year. Hìnt: Disbenefits = $0 and Annual Upkeep is equivalent to Annual M&O The correct formula to calculate the Modified B/C is: O Modified B/C (benefits - disbenefits )/ costs %3D Modified B/C = (benefits - disbenefits + M&O) / initial investment %3D Modified B/C = (benefits - disbenefits- M&O) / (initial investment + M&O) %3D Modified B/C = (benefits – disbenefits- M&O) / initial investment

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