Table 1: The Planned Value of Work Done ScheduleMarch120,000120,00070,000100,000JanFebProject AProject BProject CProject D60,000100,00080,000120,000100,00080,00080,000120,000Аpril120,000140,00090,000120,000May200,000140,000100,000150,000Based on the data obtained from each project, you have found out the value ofwork done on the 31st of March, which is shown in Table 2 below.Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the31st of MarchProjectActual Value of WorkDone300,000250,000250,000280,000Direct Cost Incurred220,000180,000200,000240,000AEach project is supposed to contribute 10%profit and 8% orerhead to the compoany.You are requested to present to thecompany the turnorer as of the 31st ofmarch. Prepare your answer by answeringthe following questions.a) Calculate the planned ralue of workdone, the total planned orerhead and thetotal profit contribution from all theprojects as of the 31st of march.b) Calculate the actual ralue of work doneand the totalactual profit contributionfrom all the projects as of the 31st ofmarch.c) Analyseplanned and actual nett profitcontribution of all the projects as of the31stof march, and comment on the statusof the projects.on the rariance between the

Contribution of the Project Sales. xxxxx-Variable cost.…

March 120,000 120,000 70,000 100,000 Аprl 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Feb Project A Project B Project C Project D Jan 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Project Direct Cost Incurred Actual Value of Work Done 300,000 250,000 250,000 280,000 220,000 180,000 200,000 240,000 C Each project is suPposed to contribute 10% profit and 8% overhead to the company. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answenr by answering the following questions. a) Calculate the planned ralue of work done the +otal Rlanned oxerrhe ad and the

March 120,000 120,000 70,000 100,000 Аprl 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Feb Project A Project B Project C Project D Jan 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 2 below. Table 2: The Actual Value of Work Done and Direct Cost Incurred as of the 31st of March Project Direct Cost Incurred Actual Value of Work Done 300,000 250,000 250,000 280,000 220,000 180,000 200,000 240,000 C Each project is suPposed to contribute 10% profit and 8% overhead to the company. You are requested to present to the company the turnorer as of the 31st of march. Prepare your answenr by answering the following questions. a) Calculate the planned ralue of work done the +otal Rlanned oxerrhe ad and the

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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Unit VIII Question 16 part a
Identify two types of such a company and explain why. QUESTION TWO Total [12 marks] Finozest Solutions is considering setting up a facility to manufacture computers. The manufacturing facility will cost K15 million to build and will have the capacity to sell 50,000 computers a year. Each computer is expected to sell retail for K2,800, and the cost of making each computer is expected to be K1,400. The fixed costs amount to K150,000 per year are expected to be incurred. The business will run for five years, at which time you estimate the market value of the facility to be zero. The discount rate is estimated at 10%, and the tax rate is 40%. [5 marks] (b) Using the net present value technique for project evaluation, advise Finozest solutions on whether they should undertake this project. (a) Estimate the accounting rate of return expected from his investment. [10 marks] (c) After the release of the latest GDP projections for the country, you now estimate that at the end of 5 years, you…
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Problem 9-34 Project Evaluation (LO4) The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $25. Year 1 2 3 4 Thereafter Unit Sales 25,000 45,000 29,000 5,000 0 It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an initial (Year O) investment in working capital of .20 × 25,000 × $40 = $200,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $275,000. This investment will depreciate on the MACRS schedule over 3 years. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 30%. The discount rate is 20%. Use the MACRS depreciation schedule. a. What is the net present value of the project? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. a. Net present value b. Increase in NPV
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