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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $268,000. Project 2 requires an initial investment of $170,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Project 1 $ 180,000 Project 2 $ 160,000 85,000 52,000 40,000 28,000 38,000 40,000 $ 27,000 $ 30,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Project 1 Project 2 Income Cash Flow Income Cash Flow $ 180,000 $ 160,000 Materials, labor, and overhead (except depreciation) 85,000 Depreciation-Machinery 40,000 Selling, general, and administrative expenses 28,000 Income $ 27,000 Net cash flow $ < Required A 52,000 38,000 40,000 $ 30,000 0 $ 0 Required >

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $268,000. Project 2 requires an initial investment of $170,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Project 1 $ 180,000 Project 2 $ 160,000 85,000 52,000 40,000 28,000 38,000 40,000 $ 27,000 $ 30,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Project 1 Project 2 Income Cash Flow Income Cash Flow $ 180,000 $ 160,000 Materials, labor, and overhead (except depreciation) 85,000 Depreciation-Machinery 40,000 Selling, general, and administrative expenses 28,000 Income $ 27,000 Net cash flow $ < Required A 52,000 38,000 40,000 $ 30,000 0 $ 0 Required >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $268,000. Project 2 requires an initial investment of $170,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Project 1 $ 180,000 Project 2 $ 160,000 85,000 52,000 40,000 28,000 38,000 40,000 $ 27,000 $ 30,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Project 1 Project 2 Income Cash Flow Income Cash Flow $ 180,000 $ 160,000 Materials, labor, and overhead (except depreciation) 85,000 Depreciation-Machinery 40,000 Selling, general, and administrative expenses 28,000 Income $ 27,000 Net cash flow $ < Required A 52,000 38,000 40,000 $ 30,000 0 $ 0 Required >
Transcribed Image Text:Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $268,000. Project 2 requires an initial investment of $170,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Income (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Project 1 $ 180,000 Project 2 $ 160,000 85,000 52,000 40,000 28,000 38,000 40,000 $ 27,000 $ 30,000 Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's annual net cash flow. Annual Amounts Sales of new product Expenses Project 1 Project 2 Income Cash Flow Income Cash Flow $ 180,000 $ 160,000 Materials, labor, and overhead (except depreciation) 85,000 Depreciation-Machinery 40,000 Selling, general, and administrative expenses 28,000 Income $ 27,000 Net cash flow $ < Required A 52,000 38,000 40,000 $ 30,000 0 $ 0 Required >
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