Please help me asap.Don't use any AI... It's strictly prohibited. This problem build son the prior one. Company A has a three-year contract to build a bridge for a local city for $20 million. At the start of the contract, Company Aestimates the total costs will be $17 million. In year one, Company A completes 1/3 of the work. In Year 2, Company A completes another third of the work, but it nowbelieves the total costs will be $18 million, not $17 million. If the company uses the percentage of completion method, approximately how much gross profit on thecontract will it recognize in Year 2?NoneO $1 million$333,333$$666,666 and the prior year gross profit will be restated as $666,666

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Answered: This problem build son the prior one.…

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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A construction company operates a bulldozer that initially costs $28,000. The first year maintenance is $600, the second year is $900, and $1200 the third year. The salvage value at the end of the third year is $15,000. If the company decides to keep the bulldozer beyond the third year, the maintenace costs are: $900 the fourth year, $1150 the fifth year, $1300 the sixth year. There is a $7000 cost at the end of the third year if the bulldozer is kept. The salvage value at the end of six years is $10,000. If the bulldozer is kept for two more years, another overhaul at the end of the sixth year will cost $14,000. Maintenance costs will be $9900 at the end of the seventh and eighth years. Compare the annual costs if the bulldozer is kept for three years, six years, or eight years. Assume the eight-year salvage value is zero. Use 10%
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TO REMEDY THE TRAFFIC SITUATION AT A BUSY INTERSECTION IN QUEZON CITY, TWO PLANS ARE BEINGCONSIDERED:PLAN AIS TO BUILD A COMPLETE CLOVER-LEAF COSTING P 9,200,000.00 WHICH WOULD PROVIDE FOR ALL NEEDSDURING THE NEXT 30 YEARS. MAINTENANCE COSTS ARE ESTIMATED TO BE P 2,000.00 A MONTH FOR THE FIRST15 YEARS AND P 3,500.00 A MONTH FOR THE SECOND 15 YEARS.PLAN BIS TO BUILD A PARTIAL CLOVER-LEAF AT A COST OF P 6,500,000.00 WHICH WOULD BE SUFFICIENT FOR THENEXT 15 YEARS. AT THE END OF 15 YEARS, THE CLOVER-LEAF WILL BE COMPLETED AT AN ESTIMATED COSTOF P 7,500,000.00. MAINTENANCE WOULD COST P 1,400.00 A MONTH DURING THE FIRST 15 YEARS AND P 3,500.00A MONTH FOR THE SECOND 15 YEARS.IF MONEY IS WORTH 8%, WHICH OF THE TWO PLANS WOULD YOU RECOMMEND? USE PRESENT WORTH OFCOST METHOD.
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K A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $27,000. People will be charged a toll of $0.22 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $9,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $80,000 every five years and regular annual maintenance costs of $17,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10per year. Choose the correct answer below. .... A. The maximum acceptable cost of the new bridge is $1,668,576.…
The Army Corps of Engineers wants to construct a dam on a flood-prone river. The estimated construction cost and average annual dollar benefits are listed below. A 6% per year rate applies and dam life is infinite for analysis purposes. (a) Select the one best location using the B/C method. (b) If the sites are now considered independent projects, which sites are acceptable?
Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $320,000, has a 4-year life, and requires $117,000 in pretax annual operating costs. System B costs $400,000, has a 6-year life, and requires $111,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 21 percent and the discount rate is 10 percent. Calculate the EAC for both conveyor belt systems. Which conveyor belt system should the firm choose? System B System A
Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $216,000, has a four-year life, and requires $69,000 in pretax annual operating costs. System B costs $306,000, has a six-year life, and requires $63,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 35 percent and the discount rate is 10 percent. Calculate the NPV for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV System A $ System B $ Which conveyor belt system should the firm choose? System B System A
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $335,000, has a four-year life, and requires $129,000 in pretax annual operating costs. System B costs $415,000, has a six-year life, and requires $123,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 24 percent and the discount rate is 9 percent. Calculate the NPV for both conveyor belt systems. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) System A System B
Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $268,000, has a four-year life, and requires $82,000 in pretax annual operating costs. System B costs $378,000, has a six-year life, and requires $76,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 35 percent and the discount rate is 10 percent. Calculate the NPV for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $340,000, has a four-year life, and requires $133,000 in pretax annual operating costs. System B costs $420,000, has a six-year life, and requires $127,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 25 percent and the discount rate is 10 percent. Calculate the NPV for both conveyor belt systems

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