Answer:
Explanation:
South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.
A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?
Total (65,000)
Cash flow year 1 - 5
Saving on installations per year 450,000
Less: Annual upgrades ( 15,000)
Total 435,000
Less: Tax (30%) (130,500);
Total project free cash flow 304,500.answer
Answer:
The basic earnings per share for the present year is $7.36 per share
Explanation:
The basic earnings per share for the current year of Comma is computed as:
= (Net Income - preferred stock) / Outstanding shares
where
Net Income is $200,000
Preferred stock is computed as:
= Shares × 10% × Price × 10%
= 8,000 × 10% × $20
= 800 × $20
= $16,000
Outstanding shares - 25,000
Putting the values above:
= ($200,000 - $16,000) / 25,000
= $ 184,000 / 25,000 shares
= $7.36 per common share
Answer:
Different aspects to be considered:
First of all, the steakhouse probably has the most clients between 6 to 8 PM, that is why discounts are not offered during that time.
Second, the discount is offered to only a certain group, employees of other stores, because it is a promotional strategy aimed at increasing the number of clients during slow hours. Since this is a fancy place, it is probably expensive also. Most employees would not actually eat there except on a special event, e.g. birthday or anniversary dinner. Even with the 20% discount, not many of them will actually eat there.
This is something nice to offer, since a shopping mall is a close environment where a lot of different people work together, even if very few will actually take the offer. It is normal that different stores have distinct promotions for the employees that work there. It is similar to offering perks that help create a better working environment between the employees of different stores.
30 because I don’t know what if I got it back in there at least you know
Answer:
The answer is c.direct labor cost and overhead costs.
Explanation:
Conversion costs include direct labor and overhead expenses incurred in the process of converting raw materials into finished products
