Business, 18.07.2020 23:01 junahsisney
Most Company has an opportunity to invest in one of two new projects.
Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value.
Project Z requires a $350,000 investment for new machinery with a three-year life and no salvage value.
The two projects yield the following predicted annual results.
The company uses straight-line depreciation and cash flows occur evenly throughout each year.
Project Y Project Z
Sales $350,000 $280,000
Expenses:
Direct materials 49,000 35,000
Direct labor 70,000 42,000
Overhead including depreciation 126,000 126,000
Selling and administrative expenses 25,000 25,000
Total expenses $270,000 $228,000
Pretax income 80,000 52,000
Income taxes (30%) 24,000 15,600
Net income $56,000 $36,400
Required:
1. Compute each project's annual expected net cash flows.
2. Determine each project's payback period.
3. Compute each project's accounting rate of return.
4. Determine each project's net present value, using 8% as the discount rate.
Assume that cash flows occur at each year-end.
Answers: 3
Business, 22.06.2019 09:30
Stock market crashes happen when the value of most of the stocks in the stock market increase at the same time. question 10 options: true false
Answers: 1
Business, 22.06.2019 13:30
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?
Answers: 2
Business, 22.06.2019 13:30
Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?
Answers: 3
Business, 22.06.2019 17:20
Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?
Answers: 1
Most Company has an opportunity to invest in one of two new projects.
Project Y requires a $350,000...
World Languages, 29.07.2019 17:30
Social Studies, 29.07.2019 17:30
Mathematics, 29.07.2019 17:30
English, 29.07.2019 17:30
Business, 29.07.2019 17:30
Geography, 29.07.2019 17:30
Physics, 29.07.2019 17:30
English, 29.07.2019 17:30
Mathematics, 29.07.2019 17:30
Chemistry, 29.07.2019 17:30