4K More Parts Liquidators specializes in buying excess parts inventories to resell or to incorporate into other products. They recentlypurchased parts for $125,000 and they have a buyer willing to pay $150,000. The company also can Incorporate these parts intonew product at a cost of $93,750 and sell the new product for $237,500. What should More Parts Liquidators do?Sales RevenueCost of PartsAdditional CostsProfit/lossMore Parts shouldParts OnlyNew ProductwithpartsIncremental

The purpose of incremental analysis is to help people make better decisions by recognizing the…

More Parts Liquidators specializes in buying excess parts inventories to resell or to Incorporate into othe purchased parts for $125,000 and they have a buyer willing to pay $150,000. The company also can inc new product at a cost of $93,750 and sell the new product for $237,500. What should More Parts Liquid

More Parts Liquidators specializes in buying excess parts inventories to resell or to Incorporate into othe purchased parts for $125,000 and they have a buyer willing to pay $150,000. The company also can inc new product at a cost of $93,750 and sell the new product for $237,500. What should More Parts Liquid

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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what would be the difference if the ¹ Degree of completition: DM, were 10% instead of 100%
10
which has a better IRR Project 1 Year Cashflows Discount Rate 10% 0 $ (750,000.00) 1 $ 250,000.00 2 $ 300,000.00 3 $ 350,000.00 4 $ 200,000.00 5 $ 100,000.00 Project 2 Year Cashflows Discount Rate 10% 0 $ (1,000,000.00) 1 $ 200,000.00 2 $ 300,000.00 3 $ 400,000.00 4 $ 500,000.00 5 $ 700,000.00
For the following set of cash flows, Year Cash Flow -$ 7,300 3,400 3,900 3,900 a. What is the NPV at a discount rate of 0 percent? 1 01N3 NA VE 2 NPV 11 KIMU7 < Prev 4
Calculate the annual cash flows for the given investment: 91,000 invested at 10 percent.
Alpha Bridge Project SUMMARY OF BRIDGE REPAIR COSTS Year Activity Cost GH¢ 2005 Inspection and top chord repairs 44,800 2007 Inspection and erosion protection 19,800 2009 Inspection 1,800 2011 Inspection and misc. steel repairs 31,800 2013 Inspection 1,800 2015 Inspection 1,800 2017 Inspection and repair abutments 65,000 2019 Inspection 1,800 Calculate the present value of the costs for the above project cash flow with a discounting rate of 5%
Using discount rate 20% the project should be rejected or accepted
nces Mc raw Mill Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 1. 2. 3. 4. 5. Present Value Future Value $ $ $ $ i $ 80,000 4.5% 31,841 $ 94,000 15,762 $ 50,000 84,482 $ 200,000 13,291 8.0% 9.0% n 9 16 10 15
3. The Clearwater Company has a budget of $500000 which can be spent on the five independents projects. If MARR = 20%, how should the budget be allocated? Total Project Project Number i* Cost 1 29.1% $150000 2 10.5% 50000 21.5% 200000 4 19.5% 75000 23.2% 25 000
C = 250 + 0.30Y4 = 250 + 0.30(Y – T) I = 200 G = 500 T = 250 Key in all answers in 2-decimal places: The Marginal Propensity to Consume is 0.3 The Marginal Propensity to Save is 0.7 The Government Spending Multiplier is 1.43 The (absolute value) of the Tax-Multiplier is The Balanced Budget Multiplier is
Suppose now that we have a multi-period project. The project costs $100,000 Perlodi Perlod2 Perlod3 CF1 pl CF2 pl CF3 pl 23797.53 0.4 33226.74 0.3 24246.54 0.1 47595.06 0.5 66453.48 0.6 48493.08 0.7 71392.59 0.1 99680.22 0.1 72739.62 0.2 1/ Find the E(CF1), E(CF2) and E(CF3) 2/ Find the V(CF1), V(CF2) and V(CF3) 3/ IF the requlred rate of return Is 9% then 3-1 Find E(NPV) 3-2 Find V(NPV) if we consider Independence Between the Cash Flows 3-3 Find the o(NPV) if we consider total dependence Between the Cash Flows. 3-4 Find the probability that the NPV of the project is less than to zero the if we consider total dependence Between the Cash Flows
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