Answer:
the company should buy and install the press because the NPV of the project is positive ($73,133.75)
Explanation:
the MACRS 5 year depreciation:
- $375,000 x 20% = $75,000
- $375,000 x 32% = $120,000
- $375,000 x 19.2% = $72,000
- $375,000 x 11.52% = $43,200
- $19,800, since salvage value at year 5 is $45,000
- $0 x 5.76% = $0
salvage value $45,000
total initial investment = $375,000, discount rate = 11%
- cash flow year 1 = {($142,000 - $15,000 - $75,000) x (1 - 34%)} + $75,000 = $109,320
- cash flow year 2 = {($142,000 - $2,000 - $120,000) x (1 - 34%)} + $120,000 = $133,200
- cash flow year 3 = {($142,000 - $2,000 - $72,000) x (1 - 34%)} + $72,000 = $116,880
- cash flow year 4 = {($142,000 - $2,000 - $43,200) x (1 - 34%)} + $43,200 = $107,088
- cash flow year 5 = {($142,000 - $2,000 - $19,800) x (1 - 34%)} + $19,800 + $45,000 = $144,132
the NPV of the project = -$375,000 + $109,320/1.11 + $133,200/1.11² + $116,880/1.11³ + $107,088/1.11⁴ + $144,132/1.11⁵ = $73,133.75
Answer:
A. $6,200
Explanation:
We multiply the taxable wages by the tax rate of each tax.
FICA 80,000 x 7% = 5,600
Unemployment 20,000 x 3% = 600
This will be share of Cado in the payroll taxes. 6,200
The total taxes, would include the employee FICA. but we aren't asked for that. Just for the employee
Answer:
Predetermined overhead rate = $0.8 per hour
Overhead applied in December = $34,960
Explanation:
Predetermined overhead rate = Estimated manufacturing overhead / Estimated direct labor hours
Predetermined overhead rate = $416,000 / 520,000 hours
Predetermined overhead rate = $0.8 per hour
(as Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.)
Actual Labor hour = 43,700
Overhead applied in December = 43,700 hours x $0.8 = $34,960
Telecommuting is an alternate work place arrangement like work from home, library or any place very near to home.
By allowing Angela to telecommute, company is experiencing;
A. Increased productivity
Explanation:
A 2014 Stanford study says call centers employees who work from home increase productivity by 13%
B. Reduced Turnover.
Explanation:
Employee turnover is costly proposition. When employee will work from home he will be happier and not think to leave position which can cause an add up savings for employer for a long run
C. Increased Morale.
Explanation:
It is also a turn over for a company. Employee who works from home feels himself a valuable which increases his morale. Telecommuters tend less stress and much happier than office going workers.
D. Environmental Friendly.
Explanation:
Telecommuters don't take it as a work. They enjoy it as they are free of stress.
E. Economically sound
Explanation:
Its not only telecommuters who can take financially benefits but it is estimated that company can approximately save $11000 on each employee annually.
Answer:
I believe its A signs one contract
