Particulars Amount ($) Sales 2,735,000 Less: Variable expenses 45% 1,230,750 Contribution margin 1,504,250 Less: Fixed expenses 735,000 Earnings before depreciation , interest and taxes 769,250 Less: Depreciation 595,000 Earnings after depreciation or EBIT 174,250 Add: Depreciation 595,000 Annual cash inflow 769,250 Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

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Answer 1

Question

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

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Sp25 ACCT X CengageNOWv2 | Online teaching X exhibit 6.4.jpg 71x399) x + bw.com/ilrn/takeAssignment/takeAssignmentMain.do?inprogress=true FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 < 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illust first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER un Check My Work 3 more Check My Work uses remaining Q Search hp

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Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

Answer 2

Question

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

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Answer 3

Question

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

Answer 6

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

Answer 7

Chapter 13, Problem 13F15

NPV is computed by deducting initial investment amount from the present value.

Project’s actual net present value will be calculated in the following way, when variable expenses changes to 45%:

Computation of annual cash inflow when variable expenses changed to 45%:

To determine

Particulars Amount ($)

Sales 2,735,000

Less: Variable expenses 45% 1,230,750

Contribution margin 1,504,250

Less: Fixed expenses 735,000

Earnings before depreciation, interest and taxes 769,250

Less: Depreciation 595,000

Earnings after depreciation or EBIT 174,250

Add: Depreciation 595,000

Annual cash inflow 769,250

Computation of actual net present value is required to be computed when variable expenses are changed to 45%.

Answer 8

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Answer 9

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Answer 11

Ch. 13.A - Prob. 1E Ch. 13.A - Prob. 2E Ch. 13.A - Prob. 3E Ch. 13.A - Prob. 4E Ch. 13.A - Exercises 13A-5 Basic Present Value Concepts...Ch. 13.A - Prob. 6E Ch. 13.C - Prob. 1E Ch. 13.C - Prob. 2E Ch. 13.C - PROBLEM 13C-3 Income Taxes and Net Present Value...Ch. 13.C - Prob. 4P

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Chapter 13 Solutions

Particulars	Amount ($)
Sales	2,735,000
Less: Variable expenses 45%	1,230,750
Contribution margin	1,504,250
Less: Fixed expenses	735,000
Earnings before depreciation, interest and taxes	769,250
Less: Depreciation	595,000
Earnings after depreciation or EBIT	174,250
Add: Depreciation	595,000
Annual cash inflow	769,250