|
Dog Up! Franks is looking at a new sausage system with an installed cost of $733,200. This cost will be depreciated straight-line to zero over the project's 10-year life, at the end of which the sausage system can be scrapped for $112,800. The sausage system will save the firm $225,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $52,640. |
| If the tax rate is 25 percent and the discount rate is 13
percent, what is the NPV of this project? |
$284,383.44
$309,305.61
$272,172.74
$247,250.57
$285,781.38
In: Finance
The Black Pepper Corporation desires to classify the cost and provides you the figure of trial balance for the period ended on December 31, 2016 as under: Rupees Material Consumed 30% of direct labour cost Factory overhead 60% of direct labour cost Finished goods – Beginning 49,000 Finished goods – Ending 68,000 Work in process – Beginning 42,000 Work in process – Ending 51,300 Materials – Beginning 29,500 Materials – Ending 25,810 Cost of goods manufactured 460,000
Required: Prepare Cost of Good Manufacture Statement
In: Accounting
|
Dog Up! Franks is looking at a new sausage system with an installed cost of $343,200. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $52,800. The sausage system will save the firm $105,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,640. |
| If the tax rate is 24 percent and the discount rate is 16
percent, what is the NPV of this project? |
Multiple Choice
$-72,040.63
$-61,009.08
$-52,372.20
$-38,846.74
$-49,878.29
In: Finance
Dog Up! Franks is looking at a new sausage system with an installed cost of $343,200. This cost will be depreciated straight-line to zero over the project's 7-year life, at the end of which the sausage system can be scrapped for $52,800. The sausage system will save the firm $105,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $24,640. If the tax rate is 21 percent and the discount rate is 11 percent, what is the NPV of this project?
Multiple Choice :
a) $118,517.97
b) $85,655.10
c) $98,427.03
d) $111,033.33
e) $105,746.03
In: Finance
Dog Up! Franks is looking at a new sausage system with an installed cost of $897,000. This cost will be depreciated straight-line to zero over the project's 4-year life, at the end of which the sausage system can be scrapped for $138,000. The sausage system will save the firm $276,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $64,400. If the tax rate is 23 percent and the discount rate is 12 percent, what is the NPV of this project?
Multiple Choice $-27,313.48 $-53,325.42 $-50,786.12 $-94,843.63 $-118,316.27
In: Finance
Edwards Construction currently has debt outstanding with a market value of $103,000 and a cost of 12 percent. The company has EBIT of $12,360 that is expected to continue in perpetuity. Assume there are no taxes.
a-1. What is the value of the company's equity? (Do not round intermediate calculations. Leave no cell blank - be certain to enter "0" wherever required.)
a-2. What is the debt-to-value ratio? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What are the equity value and debt-to-value ratio if the company's growth rate is 4 percent? (Do not round intermediate calculations and round your "Debt-to-value" answer to 3 decimal places, e.g., 32.161.)
c. What are the equity value and debt-to-value ratio if the company's growth rate is 8 percent? (Do not round intermediate calculations and round your "Debt-to-value" answer to 3 decimal places, e.g., 32.161.)
In: Finance
Justin Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 percent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Button pays 60 percent in the month of purchase and 40 percent in the month following. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the sale.
Month Sales Revenue
December $170,000
January 250,000
February 120,000
March 200,000
April 160,000
Prepare a schedule of cash disbursements for January, February, and March
In: Accounting
|
Mom’s Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old oven was $35,000; it is now five years old, and it has a current market value of $15,000.00. The old oven is being depreciated over a 10-year life toward a zero estimated salvage value on a straight-line basis, resulting in a current book value of $17,500 and an annual depreciation expense of $3,500. The old oven can be used for six more years but has no market value after its depreciable life is over. Management is contemplating the purchase of a new oven whose cost is $27,000 and whose estimated salvage value is zero. Expected before-tax cash savings from the new oven are $4,200 a year over its full MACRS depreciable life. Depreciation is computed using MACRS over a 5-year life, and the cost of capital is 10 percent. Assume a 30 percent tax rate. |
| What will the cash flows for this project be? |
re
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |||||||
| FCF | $ | $ | $ | $ | $ | $ | $ | |||||||
rev: 04_25_2018_QC_CS-125254
In: Finance
Suppose a machine (defender) was purchased 2 years ago with an
initial cost of $30,000. The CCA rate for the machine is 30%. The
tax rate is 40%, and the company’s MARR is 15%. The operating cost
of the machine is $4,000 per year. The current market value of the
machine is $8,000, and this value decreases by $2,000 per year
until it reaches zero. (a) What is the current net market value of
the machine? (b) What will be the Annual Equivalent Cost if we
decide to keep the machine for another 3 years? (Use the
opportunity cost approach)
*** PLease explain how to do it step by step!***
In: Finance
2. Pick one of the cost flow assumptions and a product that would utilize that flow. Describe why it is the best of the four methods or LMC for that product.
In: Accounting