Downhill Pizza, located near the Sugarloaf ski area, makes Tuscan style “homemade” pizza which it freezes and distributes throughout the northeast. It is considering a new more efficient pizza oven with a larger capacity. The installed cost will be $290,000. This cost will be depreciated straight line over its five year life to a zero salvage value as determined by the IRS (there is no half-year convention with straight line depreciation). However, the firm plans to sell the oven in four years (at t = 4) for $65,000. The oven will save the firm $110,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $28,000 which will be returned to the firm at the end of the project (at t=4). There are no other net working capital changes. If the tax rate is 28% and the project discount rate is 14%, what is the NPV of this project?

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,300 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,400 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $5.90 per car washed. The company actually washed 8,300 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.70 per car washed.

Required:

Prepare the company’s flexible budget for August.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.60 per car washed.

Required:

Prepare the company’s planning budget for August.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,500 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,100 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

A Company uses a 10-hp motor for 16 hours per day, 5 days per week, 50 weeks per year in its flexible work cell. This motor is 85% efficient, and it is near the end of its useful life. The company is considering buying a new high efficiency motor (91% efficient) to replace the old one instead of buying a standard efficiency motor (86.4% efficient). The high efficiency motor cost $70 more than the standard model, and should have a 14 year life. The company pays $7 per kW per month and $0.06 per kWh. The company has set a discount rate of 10% for their use in comparing projects.
Determine;
a) SPP ( simple Payback Period),
b) IRR (Internal Rate of Return), and
c) BCR (benefit/cost ratio) for this project
Assume 60% load factor the motor.