Answer:
c. $19,823
Explanation:
For the computation of annual operating cash flow first we need to find out the EBIT and Tax which is shown below:-
EBIT = Revenue - Variable cost - Fixed cost - Depreciation
= $119,300 - $75,400 - $15,900 - $3,950
= $24,050
Tax = EBIT × Tax rate
= $24,050 × 34%
= $8,177
Operating cash flow = EBIT + Depreciation - Taxes
= $24,050 + $3,950 - $8,177
= $19,823
Hence, the correct option is c.
D) Ranking
Jobs are usually ranked in each department and then the department rankings are combined to develop an organizational ranking.
This question is incomplete. The complete question, answer & explanation for this question is given in the attachment below.
Complete Question:
Machine A costs $9,500 and has an annual operating cost of $5,500. Machine B costs $8,000 and has an annual operating cost of $5,800. Each machine has an economic life of 8 years. What is the annual rate of return the additional investment in machine A?
Answer:
IRR is 11.81%
Explanation:
<u><em>We have to find the annual rate of return on the additional investment in machine A.</em></u> The additional investment can also be termed as incremental investment which is $1,500 ($9,500 - $8,000). Furthermore, the additional cost savings of operating machine A is $300 ($5,500 - $5,800). And this cost savings will be during the life span of the machine A.
Now
We can compute IRR, by using Excel as under:
Answer: finish to finish
Explanation:
A lag is minimum amount of time that is required for a dependent activity have to be delayed to either start or end.
If testing cannot be completed any earlier than four days after the prototype has been built, the type of lag that exists is finish to finish.