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Neko [114]
2 years ago
5

The resort project would require a $20,500,000 investment. At the end of ten years, some of the equipment would have a salvage v

alue of $300,000. The project would require additional working capital $450,000 in the form of an increase in the minimum balance required by their bank and this working capital would be released at the end of the project. The project would provide estimated net income each year as follows:Sales............................................................... ..................... $6,500,000
Less variable expenses................................... 4,275,000

Contribution margin...................................... .............. $2,225,000

Less fixed expenses:

Fixed expenses*................................. .............................. $1,115,000

Net income.................................................... ................... $1,111,000
Business
1 answer:
Gemiola [76]2 years ago
6 0

Answer:

Net present value

Explanation:

<u>Missing Information    </u>

Weighted average cost of capital: 8% and  Solve for net present value:

investment: project outlay 20,500,000 + increase in working capital 450,000

F10 salvage value: 300,000 + 450,000 liberate working capital

cahsflow per year income 1,111,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,111,000.00

time 10

rate 0.08

1111000 \times \frac{1-(1+0.08)^{-10} }{0.08} = PV\\

PV $7,454,900.4342

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $750,000.00

time  10.00

rate  0.08000

\frac{750000}{(1 + 0.08)^{10} } = PV  

PV   347,395.1161

Net present value

7,454,900 + 347,395 - 20,500,000 - 450,000 = -13.147.705

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There are different kinds of business. The  business environmental force is technological.

<h3>What is business environment?</h3>

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James, a production manager at a growing company, has mastered the processes and procedures of overall management of the ongoing
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Vicarious learning

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3 years ago
Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into ora
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4 0
2 years ago
Zoe Corporation has the following information for the month of March: Purchases $ 92,000 Materials inventory, March 1 6,000 Mate
NARA [144]

Answer:

Part (a) a statement of cost of goods manufactured

Raw Materials (see calculations)             90,000

Direct labor                                               25,000

Factory overhead                                     37,000

Total Manufacturing Cost                       152,000

<em>Add</em> Opening Work In Progress              22,000

<em>Less</em> Closing Work In Progress               (23,500)

Cost of goods manufactured                  106,500

Part (b) an income statement for the month ended March 31

Sales                                                                                                257,000

Less Cost of Goods Sold

Opening Stock of Finished Goods                     21,000

Add Cost of goods manufactured                    106,500

Less Closing Stock of Finished Goods             (30,000)              (97,500)

Gross Profit                                                                                     159,500

Less Expenses

Sales and administrative expenses                                               (79,000)

Net Income                                                                                       80,500

Part (c) the "Inventory" section of the balance sheet

Raw Materials                              8,000

Work In Progress                      23,500

Finished goods inventory        30,000

Total                                           61,500

Explanation:

Part (a) a statement of cost of goods manufactured

Calculate the Cost of Raw Materials transferred to Manufacturing Process;

Hint: Open a Raw Materials T - Account.

Debits :

Materials inventory March 1                                    $6,000

Purchases                                                               $92,000

Totals                                                                      $98,000

Credits :

Materials inventory, March 31                                   8,000

Manufacturing Account (<em>Balancing figure</em>)         $90,000

Totals                                                                      $98,000

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4 0
3 years ago
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