Machine A has an initial cost of $19,500 and a salvage value of $7500 (today's value) at the end of its 12 year life.

Machine B has an initial cost of $17,900 and a salvage value of $2300 (today's value) at the end of it's 6 year life.

Inflation is 3.9%                                          

Don’t forget, we will need to increase the costs and salvage values by inflation for any transaction other than year 0.                                             

The company uses a MARR rate of 14%                                            

Benefits for machine A in year 1 are $5,250 and increase by 5.5% per year.                                                         

Benefits for machine B in year 1 are $5,400 and increase by 5.5% per year.                                                         

Costs for each machine start at $800 and increase with the inflation rate

A. Show the Cash flow table for these two machines over the project.                                  

B. What is the NPW, the EUAW and the IRR for both of these machines?

Use the information below to answer the question that follows.Sosiol Distan Singh the owner of Esquire Ltd is considering two technology investment options; Karantina and Barakoa which will require sh. 1,500,000 and sh. 200,000, respectively. The revenues for each option are as follows. Karantina (for year 1 to year 6) 100,000; 350,000; 450,000; 765,000; 1,335,000; 2,150,000. Barakoa (for year 1 to year 3) 300,000; 350,000; 500,000. The expenses increase yearly from the first year by 20% each subsequent year. The figures for expenses in the first year are sh. 150,000 and sh. 20,000 respectively. The rate of inflation is 12%.Required: Advise Mr. Singh which option he should take given: i. Payback period [2 marks] ii. NPV profiles (show your workings)

Smidt Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 9 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 140,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 5 Fixed selling and administrative expense per year $ 65,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 10,000 7,000 Units sold during the year 7,000 6,000 Units in ending inventory 3,000 4,000 The unit product cost under variable costing in Year 1 is closest to:

Your firm intends to purchase equipment today for $1 million (year 0). The equipment will be straight-line depreciated to a book value of $0 over 10 years (years 1-10). The project will last five years, generating revenues of $600,000 per year (years 1-5). Variable costs will equal a constant 30% of revenues. Fixed costs will equal $100,000 per year (years 1-5). Working capital equals 20% of next year's revenues. The equipment will be sold for $600,000 in year 6. The appropriate tax rate is 40% and the discount rate is 10%. What is the NPV of this project? Be sure to clearly state the relevant CFs each year between year 0 and year 6.

How do you figure out the Cash Flow Salvage value?

Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $234,600, has an estimated useful life of 10 years and an estimated residual value of $30,600.

a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?

b. What was the book value of the equipment on January 1 of Year 4?
$

c. Assuming that the equipment was sold on January 3 of Year 4 for $164,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

d. Assuming that the equipment had been sold on January 3 of Year 4 for $176,900 instead of $164,700, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

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On March 31, Year 1, Big Ltd. purchased 1,500 (15% ownership) of the shares of Small Ltd. at a price of $10 per share. On December 31, Year 1, Big’s year-end date, Small paid a dividend of $0.50 per share and reported net income for the year of $25,000, which was earned evenly over the year. On December 31, Year 1, the Small shares had a fair value of $14 per share. Required: Provide all journal entries to be made by Big on March 31 and December 31, Year 1, assuming the investment in Small was to be accounted for using the: a. Equity method b. Fair value through net income model c. Fair value through other comprehensive income model

A machine costing $207,200 with a four-year life and an estimated $16,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 123,400 in 1st year, 124,200 in 2nd year, 120,900 in 3rd year, 119,500 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted. (The machine must not be depreciated below its estimated salvage value.) Required: Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method. (Round your per unit depreciation to 2 decimal places. Round your answers to the nearest whole dollar.)

Sandra, a single taxpayer with a marginal tax rate of 35 percent, sold the following assets during the year:

*$30,000 of the gain is §1250 recapture. The remaining gain is 0/15/20 percent gain. What are Sandra’s recognized gains/losses for the year and what tax rate(s) will apply to those gains/losses?

The Femaware Company uses the allowance method to account for bad debts. At the beginning of year 1, the allowance account had a credit balance of $66,844. Credit sales for year 1 totaled $2,139,000 and the year end accounts receivable balance was $436,713. During this year, $65,061 in receivables were determined to be uncollectible. Femaware anticipates that 4% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.

Required:

1. Does this situation describe a loss contingency? Explain.

2. What is the bad debt expense that Femaware should report in its year 1 income statement?

3. Prepare the appropriate journal entry to record the contingency.

4. What is the net realizable value (book value) Femaware should report in its year 1 balance sheet?

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Units produced 38,000 shoes

first year units produced are : 7000 CAD

first year units produced are : 5000 CAD

first year units produced are : 7000 CAD

first year units produced are : 6600 CAD

first year units produced are : 3000 CAD

1- Calculate the first year depreciation using the three methods usable

2- Calculate the accumulated depreciation using the three methods for the 3rd and 4th year.