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In: Accounting
TB Problem Qu. 13-161 Mattice Corporation is considering... Mattice Corporation is considering investing $850,000 in a...
TB Problem Qu. 13-161 Mattice Corporation is considering...
Mattice Corporation is considering investing $850,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $35,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $180,000. The salvage value of the assets used in the project would be $45,000. The company uses a discount rate of 13%. (Ignore income taxes.)
Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided.
Required:
Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
TB Problem Qu. 13-156 Joanette, Inc., is considering the purchase... Joanette, Inc., is considering the purchase...
TB Problem Qu. 13-156 Joanette, Inc., is considering the
purchase...
Joanette, Inc., is considering the purchase of a machine that
would cost $410,000 and would last for 5 years, at the end of
which, the machine would have a salvage value of $41,000. The
machine would reduce labor and other costs by $101,000 per year.
Additional working capital of $3,000 would be needed immediately,
all of which would be recovered at the end of 5 years. The company
requires a...
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation is a manufacturing firm that...
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation
is a manufacturing firm that uses job-order costing. The company's
inventory balances were as follows at the beginning and end of the
year: Beginning Balance Ending Balance Raw materials $ 14,950 $
22,950 Work in process $ 27,950 $ 9,950 Finished Goods $ 62,950 $
77,950 The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated...
TB Problem Qu. 3-252 Baab Corporation is a ... Baab Corporation is a manufacturing firm that...
TB Problem Qu. 3-252 Baab Corporation is a ...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw
materials
$
14,650
$
22,650
Work in
process
$
27,650
$
9,650
Finished
Goods
$
62,650
$
77,650
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated...
TB Problem Qu. 6-274 The Dorset Corporation produces and sells ... The Dorset Corporation produces and...
TB Problem Qu. 6-274 The Dorset Corporation produces and sells
...
The Dorset Corporation produces and sells a single product. The
following data refer to the year just completed:
Beginning inventory
0
Units produced
28,300
Units sold
26,600
Selling price per unit
$
446
Selling and administrative expenses:
Variable per unit
$
15
Fixed per year
$
478,800
Manufacturing costs:
Direct materials cost per unit
$
252
Direct labor cost per unit
$
57
Variable manufacturing overhead cost per unit...
TB Problem Qu. 8-224 Weller Industrial Gas Corporation ... Weller Industrial Gas Corporation supplies acetylene and...
TB Problem Qu. 8-224 Weller Industrial Gas Corporation ...
Weller Industrial Gas Corporation supplies acetylene and other
compressed gases to industry. Data regarding the store's operations
follow:
•Sales are budgeted at $390,000 for November, $410,000 for
December, and $400,000 for January.
•Collections are expected to be 80% in the month of sale and 20%
in the month following the sale.
•The cost of goods sold is 73% of sales.
•The company desires an ending merchandise inventory equal to
80% of...
TB Problem Qu. 8-217 Tilson Corporation has projected sales and ... Tilson Corporation has projected sales...
TB Problem Qu. 8-217 Tilson Corporation has projected sales and
...
Tilson Corporation has projected sales and production in units
for the second quarter of the coming year as follows:
April
May
June
Sales
49,000
39,000
59,000
Production
59,000
49,000
49,000
Cash-related production costs are budgeted at $6 per unit
produced. Of these production costs, 40% are paid in the month in
which they are incurred and the balance in the following month.
Selling and administrative expenses will amount to...
TB Problem Qu. 6-273 Maher Corporation, which has only one product ... Maher Corporation, which has...
TB Problem Qu. 6-273 Maher Corporation, which has only one
product ...
Maher Corporation, which has only one product, has provided the
following data concerning its most recent month of operations:
Selling price
$
197
Units in beginning inventory
0
Units produced
3,200
Units sold
2,800
Units in ending inventory
400
Variable costs per unit:
Direct materials
$
53
Direct labor
$
58
Variable manufacturing overhead
$
13
Variable selling and administrative expense
$
12
Fixed costs:
Fixed manufacturing overhead...
TB MC Qu. 8-120 Bramble Corporation is a small wholesaler ... Bramble Corporation is a small...
TB MC Qu. 8-120 Bramble Corporation is a small wholesaler
...
Bramble Corporation is
a small wholesaler of gourmet food products. Data regarding the
store's operations follow:
Sales are budgeted at $300,000 for November, $280,000 for
December, and $270,000 for January.
Collections are expected to be 65% in the month of sale and 35%
in the month following the sale.
The cost of goods sold is 70% of sales.
The company would like to maintain ending merchandise
inventories equal to...
TB MC Qu. 8-119 Bramble Corporation is a small wholesaler ... Bramble Corporation is a small...
TB MC Qu. 8-119 Bramble Corporation is a small wholesaler
...
Bramble Corporation is
a small wholesaler of gourmet food products. Data regarding the
store's operations follow:
Sales are budgeted at $410,000 for November, $390,000 for
December, and $380,000 for January.
Collections are expected to be 50% in the month of sale and 50%
in the month following the sale.
The cost of goods sold is 80% of sales.
The company would like to maintain ending merchandise
inventories equal to...
TB MC Qu. 9-315 Tharaldson Corporation makes ... Tharaldson Corporation makes a product with the following...
TB MC Qu. 9-315 Tharaldson Corporation makes ...
Tharaldson Corporation makes a product with the following
standard costs:
Standard Quantity or Hours
Standard Price or Rate
Standard Cost Per Unit
Direct materials
6.5
ounces
$
2.00
per ounce
$
13.00
Direct labor
0.2
hours
$
23.00
per hour
$
4.60
Variable overhead
0.2
hours
$
6.00
per hour
$
1.20
The company reported the following results concerning this
product in June.
Originally budgeted output
2,700
units
Actual output
2,800
units...
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