What is the difference between a fixed and a variable cost? What is meant by the term relevant range? How is relevant range applicable to CVP analysis? What is operating leverage and how/why would companies use operating leverage?

1. The ABC Company is looking at a new piece of equipment with an installed cost of $187,400. This cost will be depreciated straight-line to zero over the four-year life. At the end of the four years the book value will be zero however it can be scrapped for $25,000. The equipment will save the firm $99,000 per year in pre-tax operating costs and the equipment requires an initial investment in net working capital of $9,000 and will be recovered at the end of the project. If the tax rate is 34% and the discount rate is 12%, what is the NPV of this project?

What is the Internal Rate of Return for this project?

Define the entity concept and the historical cost concept of financial accounting.

You are analyzing a project with an initial cost of £48,000. The project is expected to return £11,000 the first year, £36,000 the second year and £38,000 the third and final year. There is no salvage value. The current spot rate is £0.6211. The nominal return relevant to the project is 12 percent in the U.S. The nominal risk-free rate in the U.S. is 4 percent while it is 5 percent in the U.K. Assume that uncovered interest rate parity exists. What is the net present value of this project in U.S. dollars?

What is the difference between cost-push and demand-pull inflation?

What is the determing factor in how accounts are considered into the calculation of the cost to retail ratio ( when finding the ending inventory using the conventional retail method) ?                   

to achieve time, quality or cost reduction targets, organization may:

Fargo's property plant and equipment consist of a building with cost of $ 840,000 and a salvage value of $40,000 with a 15 year life purchased on 6/1/14 and equipment that cost $88,000 and salvage value of $4,000 with a 5 yr life purchased on 9/1/17. Fargo incurred delivery and installation charges of 8,000 on equipment. Fargo spent 39,000 painting the building during 2019. On 1/1/19 fargo revised estimate on life of building. fargo now estimates that the building will be in service until 12/31/31.

On 10/1/16 Fargo exchanged the piece of equipment for a similar piece of equipment with Rock company. The new equipment has salvage a salvage value of $5000 and is expected to be taken out of service at the same time the old equipment would have been. Transaction had no commercial substance. Fair value of equipment they gave up was 47,000 the fair value of the equipment received from Rock was 40,000 in addition to the equipment they received 7,000 cash

1. Prepare journal entry to record the transaction on Fargos books

2. Fargo considers depreciation to be admin expense. compute depreciation for building and equipment 2019. fargo computes depreciation to nearest month and uses 200% declining balance method for both Can someone show me how to do this step by step

Baird Bros. Construction is considering the purchase of a machine at a cost of $203,000. The machine is expected to generate cash flows of $38,000 per year for 10 years and can be sold at the end of 10 years for $28,000. Interest is at 12%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: a. What is the net present value of the cash flows?

b. Determine if Baird should purchase the machine. Yes No