Answer:
58
Explanation:
In this question we use the NPER function that is shown in the excel spreadsheet
Given that,
Present value = $0
Future value or Face value = $26,182
PMT = $400
Rate = 5% ÷ 12 months = 0.41666%
The formula is shown below:
= NPER(RATE,PMT,-PV,FV,type)
The PMT come in negative
So, after solving this, the number of payments is 58
Answer:
Turk should purchase Machine B
Explanation:
<u>Our first step</u> will be to multiply each cashflow by the factor.
Then we will add them to get the present value of the cash flow
Then we subtract the machine cost:
8,685.8 - 9,000 = -314.2 This Machine has a negative value. It is not convinient to purchase this machine.
9,605.5 - 9,000 = 605.5 This machine NPV is positive it is convient.
Answer:
$37,000.00
Explanation:
Total fixed overhead costs = $11,000.00
Variable overhead cost at 11,000 units of production
=Total overheads - Fixed overheads
=$33,000 -$11,000 = $22,000
Variable cost per unit = = $2 per unit
When production increased to 13,000 units then overheads costs will be
Fixed Costs = $11,000 Remains constant up to certain activity level, here 13,000 units is acceptable level
Variable costs = 13,000 units X $2 per unit = $26,000
Total Overhead costs = Fixed + Variable
= $11,000 + $26,000 = $37,000
Total = $37,000