Homework Help is Here – Start Your Trial Now!
Business
Finance
Can you please check my work

Can you please check my work

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Can you please check my work

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $305,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $385,000 Sales $308,000 Expenses Direct materials 53,900 77,000 138,600 28,000 297,500 87,500 22,750 $ 64,750 $ 42,698 38,500 46,200 138,600 27,000 250,300 57,700 15,002 Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (26%) Net income 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return %3D Annual after-tax net income I [Annual average investment Accounting rate of return %3D < Prev 3 4 of 5 Next >
Transcribed Image Text:Most Company has an opportunity to invest in one of two new projects. Project Y requires a $305,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $305,000 investment for new machinery with a three-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project Y Project Z $385,000 Sales $308,000 Expenses Direct materials 53,900 77,000 138,600 28,000 297,500 87,500 22,750 $ 64,750 $ 42,698 38,500 46,200 138,600 27,000 250,300 57,700 15,002 Direct labor Overhead including depreciation Selling and administrative expenses Total expenses Pretax income Income taxes (26%) Net income 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return %3D Annual after-tax net income I [Annual average investment Accounting rate of return %3D < Prev 3 4 of 5 Next >
Selling and administrative expenses Total expenses 28,000 297,500 87,500 22,750 $ 64,750 21,000 250,300 57,700 15,002 $ 42,698 Pretax income Income taxes (26%) Net income Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: %3D Accounting Rate of Return Annual after-tax net income Annual average investment Accounting rate of return %3D Project Y $ 59,850 2$ 152,500 %3D 39.2 % Project Z 2$ 38,850 152,500 25.5 % %3D %24
Transcribed Image Text:Selling and administrative expenses Total expenses 28,000 297,500 87,500 22,750 $ 64,750 21,000 250,300 57,700 15,002 $ 42,698 Pretax income Income taxes (26%) Net income Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: %3D Accounting Rate of Return Annual after-tax net income Annual average investment Accounting rate of return %3D Project Y $ 59,850 2$ 152,500 %3D 39.2 % Project Z 2$ 38,850 152,500 25.5 % %3D %24
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Personal Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS