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- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Subject: acountingYour company is developing a new textbook for FIN 301 and you paid your current FIN 301 instructor $700,000 for his input about the feasibility of such a product. The project would involve initial capital investment of $1,200,000 and installation costs related to the capital expenditures of $600,000. The project would also necessitate an increase in net working capital of $200,000 at the beginning of the project. You can straight line depreciate any depreciable expenses to zero over the three-year life of the project, and you don't expect the capital investment to be sold at the end of the project. Each year, you estimate you will receive $3,000,000 in sales revenue from your awesome textbook. Variable product and selling costs associated with these sales are expected to be 40% of revenue in each of those years. The fixed costs in each of the three years of the project will be $500,000. The corporate tax rate is 40%. Calculate the total year 0 cash flows associated with the project. $…
- Give typing answer with explanation and conclusionCyberBest started to develop an anti-malware application on August 1, 20X1. It reached technological feasibility on March 1, 20X2, and the application was released on April 30, 20X2. Below are costs to develop the application. August 1 through December 31, 20X1 $5,000,000 January 1 through February 28, 20X2 1,600,000 March 1 through April 30, 20X2 1,800,000 Determine the amount of asset and the amount of R&D expenses relating to the development of this anti-malware application. $1,800,000 asset, and $6,600,000 R&D expenses $5,000,000 asset, and $3,400,000 R&D expenses $6,600,000 asset, and $1,800,000 R&D expenses $3,400,000 asset, and $5,000,000 R&D expensesSandhill Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Sandhill Communications will design and set-up a call center with the following costs: Design of call center $18000 Computers, servers, telephone equipment $510000 Software $150000 Installation and testing of equipment $26000 Selling commission $46000 Annual service contract $80000 In addition, Sandhill Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $160000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is $678000. $830000. $660000. $750000.
- i need the answer quicklyUse the following information for the next four questions: The Anti-Zombie Corporation is considering expanding one of its production facilities to research a new type of virus, which will hopefully not cause a future zombie outbreak. The project would require a $24,000,000 capital investment and will be depreciated (straight-line to zero) over its 3 year life. They know that they will be able to salvage $6,000,000 for the equipment at that time. Incremental sales are expected to be $16,000,000 annually for the 3 year period with costs (excluding depreciation) of 40% of sales. The company would also have to commit initial working capital to the project of $2,000,000. The company has a 30% tax rate, and requires a 15% rate of return for projects of this risk level.A manufacturer of automated optical inspection devices is deciding on a project to increase the productivity of the manufacturing processes. The estimated costs for the two feasible alternatives being compared are shown below. Use the internal rate of return (IRR) method to determine which alternative should be selected if the analysis period is 8 years and the company's MARR is 4% per year. Alternative M N Initial costs $30,000 $45,000 Net annual cash flow $4,500 $7,000 Life in years 8 8 (a) IRR of base alternative = (b) IRR of incremental cash flow = (c) Choose Alternative
- To automatically insert electronic components in printed circuit boards for a cell phone production line, a $500,000 surface mount placement (SMP) machine is being evaluated by a manufacturing engineer. Over the 10-year planning horizon, it is estimated that the SMP machine will produce annual after-tax cost savings of $92,500. The engineer estimates the machine will be worth $50,000 at the end of the 10-year period. Based on the firm’s 10% after-tax MARR, should the investment be made?Aria Acoustics, Incorporated (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year 12345 Unit Sales 73,400 86,400 105,500 97,600 67,500 Production of the implants will require $1,600,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,400,000 per year, variable production costs are $257 per unit, and the units are priced at $381 each. The equipment needed to begin production has an installed cost of $16,900,000. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus qualifies as seven-year MACRS property. In five years, this equipment can be sold for about 20 percent of its acquisition cost. The tax rate is 22 percent and the required return is 14 percent. MACRS schedule a. What is the NPV of the project? Note: Do not round intermediate…Down East Chemicals is considering replacing its existing computer system with a new computer system. The new system can offer considerable savings in computer processing and inventory management costs. Information about the existing system and the new system follow: Original cost Annual operating cost Accumulated depreciation Current salvage value of the existing system Remaining life in 5 years Salvage value in 5 years Annual depreciation Sunk costs include: Existing Computer New Computer $10,000 $ 3,500 $ 6,000 $ 4,000 5 years $0 $ 2,000 $15,000 $ 2.000 $ 3,000
