Answer:
agricultural and industrial
Answer:
$8000
Explanation:
Given: Budgeted Overhead $240,000
Budgeted Labor Hrs 60,000
Actual Labor Hrs for Job B25 200
Actual labor cost for B25 $2,200
Direct Material cost for B25 $5000
Standard/ Budgeted overhead absorption rate = Budgeted Overheads/ Budgeted labor hours = $240,000/60,000 = $4 per labor hours
Budgeted overheads for actual 200 labor hours = 200 × $4 = $800
Labor cost and material cost incurred for Job B25 = $2200 + $5000 = $7200
Add: Budgeted overhead cost for 200 labor hours = $800
Cost of Job B25 = $7200 + $800 = $8000
Answer:
The answer is: the following three should be used.
- net present value (NPV)
- traditional payback period (PB)
- the modified internal rate of return (MIRR)
Explanation:
First of all, the NPV of the four projects must be positive. Only NPV positive projects should be financed. If the NPV is negative, the project should be tossed away. This is like a golden rule in investment.
Now comes the "if" part. What does the company value more, a short payback period or a higher rate of return.
If the company values more a shorter payback period (usually high tech companies do this due to obsolescence), then they should choose the project with the shortest payback period.
If the company isn't that concerned about payback periods, then it should choose to finance the project with the highest modified rate of return. This means that the most profitable project should be financed.
Answer:
This question does not include what you are required to do. I looked it up on the web and it is asking for the Internal rate of return (IRR)
Explanation:
Internal rate of return used in project evaluations is the rate at which the NPV of a project equals to zero.
You can solve for IRR using a financial calculator and the cashflow "CF " function. Key in the following inputs;
Initial investment; CF0 = -54,000
Yr1 cashflow inflow ; C01 = 27,000
Yr2 cashflow inflow ; C02 = 25,000
Yr3 cashflow inflow ; C03 = 20,000
Then key in IRR then CPT = 16.792%
Therefore, the Internal rate of return(IRR) for this equipment is 16.79%
