Questions
Mangement is considering two hotel projects. Project A will be in Jamaica with an intial investment...

  1. Mangement is considering two hotel projects. Project A will be in Jamaica with an intial investment of $865,000 and Project B will be in Canada with an initial investment of $750,000
Years     Project A   Project B
Year 1 CashFlow                           316,000.00    200,000.00
Year 2 CashFlow                           350,000.00    200,000.00
Year 3 CashFlow                           (20,000.00)    (15,000.00)
Year 4 CashFlow                           280,000.00    390,000.00

The cost of capital for Project A is 13% and the cost of capital for project B is 15%.
Calculate the following;

  1. Calculate the discounted payback period of Project A
  2. Calculate the discounted payback period of Project B.
  3. Calculate the net present value for Project A

  4. Calculate the net present value for Project B.
  1. Managemet can only accept one project. Which project should management accept? Explain your answer.

In: Finance

Amazing Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket. There...

Amazing Productions performs London shows. The average show sells 1,000 tickets at $60 per ticket. There are 120 shows per year. No additional shows can be held as the theater is also used by other production companies. The average show has a cast of 60, each earning a net average of $320 per show. The cast is paid after each show. The other variable cost is program-printing cost of $8 per guest. Annual fixed costs total $459,200.

1)Compute revenue and variable costs for each show.

2)Use the equation approach to compute the number of shows Amazing Productions must perform each year to break even.

3)Use the contribution margin ratio approach to compute the number of shows needed each year to earn a profit of $4,264,000. Is this profit goal realistic? Give your reasoning.

4)Prepare Amazing Production's contribution margin income statement for 120 shows performed in 2016. Report only two categories of costs: variable and fixed.

In: Accounting

2nd question part 4 he Foundational 15 [LO7-1, LO7-3, LO7-4] [The following information applies to the...

2nd question part 4

he Foundational 15 [LO7-1, LO7-3, LO7-4]

[The following information applies to the questions displayed below.]

Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $684,000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 235,200 12,000 MHs
Machine setups Number of setups $ 73,600 160 setups
Product design Number of products $ 80,000 2 products
General factory Direct labor-hours $ 295,200 14,400 DLHs
Activity Measure Product Y Product Z
Machine-hours 6,600 5,400
Number of setups 40 120
Number of products 1 1
Direct labor-hours 7,600 6,800

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)

In: Accounting

I need a proper solution for this question ( well explained and understandable writing) Charged particles...

I need a proper solution for this question ( well explained and understandable writing)

Charged particles from outer space, called cosmic rays, strike the Earth more frequently near the poles than near the equator. Why?

In: Physics

A construction contractor needs to choose between two suppliers of dump trucks. Supplier 1 has an...

A construction contractor needs to choose between two suppliers of dump trucks. Supplier 1 has an initial cost of $125,000 and annual operating cost of $25, 000 per year. Supplier 2 has initial cost $160,000 and has annual operating cost of 20,000 per year. The truck fleet has the same 10-year life forecast Based on incremental rate of return (IROR) and a MARR of 8%, and which supplier of trucks should the contractor choose?

Please do not use excel.

In: Finance

Donald's Tables Co. makes a standard coffee table. Donald's has determined the sales and cost values...

Donald's Tables Co. makes a standard coffee table. Donald's has determined the sales and cost values for the month of March that are given below. Find the margin of safety in dollars.

Selling Price of a coffee table: $9.30
Variable cost per coffee table: $1.80
Sales Commission (as a percentage of revenues) to be paid by Donald's to its sales people: 0%
Fixed cost: $24,000
Tax rate (as a percentage of operating income): 25%
Net Income: $11,250

In: Accounting

A firm in the year 1990 bought 60 baseball bats for $20 each and sold 40 of them in the same year for $ 25 each. What was the firm’s profit or loss for the year?

A firm in the year 1990 bought 60 baseball bats for $20 each and sold 40 of them in the same year for $ 25 each. What was the firm’s profit or loss for the year?

Q5:

  1. The cost of a baseball bat to a trading company is $ 28. What should its selling price be if it wishes to earn 25% as a percentage of cost.
  2. The cost of a baseball bat to a trading company is $ 28. What should its selling price be if it wishes to earn 25% as a percentage of sales.

 

In: Operations Management

James, Kinkaid, the owner of the Kinkaid Company was convinced by Douglas Shaw, one of his...

James, Kinkaid, the owner of the Kinkaid Company was convinced by Douglas Shaw, one of his employees, that a fellow worker, Dick Miller, had been stealing money from the company. During a break in the company's conference room, Kinkaid fired Miller in front of other workers, accused him of stealing from the company, searched through his briefcase over his objections, and finally forcibly escorted him to his office to await the arrival of the police, which he had his assistant summon. Miller was indicted for embezzlement but subsequently was acquitted upon establishing his innocence. What rights, if any, does Miller have against Kinkaid? Please discuss.

2. Sandra Davis was a worker in a New York hotel owned by the Royal Crown International Hotel Co. One day, Henry Lambert, the manager of the hotel support team, gathered all the workers and told them that a great deal of theft had taken place within the hotel. He warned the assembled workers that unless someone confessed or revealed the name of the responsible person, he would start to fire all the workers according to seniority. When no one volunteered the information he was seeking, Lambert fired Sandra Davis, a single parent of three small children. Ms Davis became very upset, began to cry, sustained emotional distress, mental anguish, and loss of wages and earnings.

Ms. Davis sued the Royal Crown International Hotel Co and Henry Lambert alleging that the defendants acted recklessly and outrageously, intending to cause emotional distress and anguish. The defendants argued that damages for emotional distress are not recoverable unless physical injury occurs as a result of the distress. Will Davis be successful on her complaint? Please explain.

3. Fred Banyon, the owner of a rural property, has a place on his land where he piles trash. The pile has been there for three months. Carl, a neighbor of the adjoining property, without Fred's consent or knowledge, threw his trash onto the trash pile. Fred discovered what Carl had done and sued. What tort, if any, has Carl committed? Please explain.

James, Kinkaid, the owner of the Kinkaid Company was convinced by Douglas Shaw, one of his employees, that a fellow worker, Dick Miller, had been stealing money from the company. During a break in the company's conference room, Kinkaid fired Miller in front of other workers, accused him of stealing from the company, searched through his brief case over his objections, and finally forcibly escorted him to his office to await the arrival of the police, which he had his assistant summon. Miller was indicted for embezzlement but subsequently was acquitted upon establishing his innocence. What rights, if any, does Miller have against Kinkaid? Please discuss.

2. Sandra Davis was a worker in a New York hotel owned by the Royal Crown International Hotel Co. One day, Henry Lambert, the manager of the hotel support team, gathered all the workers and told them that a great deal of theft had taken place within the hotel. He warned the assembled workers that unless someone confessed or revealed the name of the responsible person, he would start to fire all the workers according to seniority. When no one volunteered the information he was seeking, Lambert fired Sandra Davis, a single parent of three small children. Ms Davis became very upset, began to cry, sustained emotional distress, mental anguish, and loss of wages and earnings.

Ms. Davis sued the Royal Crown International Hotel Co and Henry Lambert alleging that the defendants acted recklessly and outrageously, intending to cause emotional distress and anguish. The defendants argued that damages for emotional distress are not recoverable unless physical injury occurs as a result of the distress. Will Davis be successful on her complaint? Please explain.

3. Fred Banyon, the owner of a rural property, has a place on his land where he piles trash. The pile has been there for three months. Carl, a neighbor of the adjoining property, without Fred's consent or knowledge, threw his trash onto the trash pile. Fred discovered what Carl had done and sued. What tort, if any, has Carl committed? Please explain.

In: Psychology

Pronghorn Furniture Company started construction of a combination office and warehouse building for its own use...

Pronghorn Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,978,200 on January 1, 2017. Pronghorn expected to complete the building by December 31, 2017. Pronghorn has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2016 $2,012,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2018 1,615,200 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2021 1,001,500 (a) Assume that Pronghorn completed the office and warehouse building on December 31, 2017, as planned at a total cost of $5,207,200, and the weighted-average amount of accumulated expenditures was $3,811,300. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.) (b) Compute the depreciation expense for the year ended December 31, 2018. Crane elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $297,000. (Round answer to 0 decimal places, e.g. 5,275.)

In: Accounting

Windsor Industries Inc. started construction of a manufacturing facility for its own use at an estimated...

Windsor Industries Inc. started construction of a manufacturing facility for its own use at an estimated cost of $9,400,000 on January 1, 2017. Windsor expected to complete the building by December 31, 2017. Windsor’s debt, all of which was outstanding during the construction period, was as follows. ● Construction loan—11% interest, payable semiannually, issued December 31, 2016; $4,700,000 ● Long-term loan #1 – 10% interest, payable on January 1 of each year. Principal payable on January 1, 2019; $1,410,000 ● Long-term loan #2—12% interest, payable on December 31 of each year. Principal payable on December 31, 2025; $3,290,000 Assume that Windsor completed the facility on December 31, 2017, at a total cost of $9,682,000, and the weighted-average amount of accumulated expenditures was $6,392,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% and round final answer to 0 decimal places, e.g. 5,275.) Avoidable Interest $ enter the avoidable interest in dollars Compute the depreciation expense for the year ended December 31, 2018. Windsor estimated the facility’s useful life to be 25 years with a salvage value of $940,000. Windsor elected to depreciate the facility on a straight-line basis. Depreciation Expense $ enter the Depreciation Expense in dollars

In: Accounting