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BartSMP [9]
3 years ago
7

Random Co. purchased a machine for $400,000 that has a five year life and will produce annual net cash inflows of $110,000 per y

ear over the life of the machine. The present value of an annuity for 5 years at an 8% cost of capital is 3.993. Calculate the Net Present Value and Payback Period of this investment.
Business
1 answer:
inysia [295]3 years ago
5 0

Answer:

NPV = $39,230

Payback period = 3.64 years

Explanation:

The net present value (NPV) = (net annual cash flow x interest factor) - investment

NPV = ($110,000 x 3.993) - $400,000 = $439,230 - $400,000 = $39,230

The payback period = investment / net annual cash flow = $400,000 / $110,000 = 3.64 years or 3 years, 7 months and 19 days

You can also calculate the PV of each annual cash flow which will give you a more precise result, but the variation is minimal:

PV = ($110,000 / 1.08) + ($110,000 / 1.08²) + ($110,000 / 1.08³) + ($110,000 / 1.08⁴) + ($110,000 / 1.08⁵) = $439,198

and the NPV = $39,198

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Mission Foods produces two flavors of tacos, chicken and fish, with the following characteristics:
Alex17521 [72]

Answer:

$1,059,050

Explanation:

The computation of the anticipated level of profits for the expected sales volumes is shown below:

Expected sales             209,000                      305,000

Particulars                     Chicken                          Fish

Sales                              $815,100                       $1,525,000

Less:

Variable cost                -$407,550                     -$762,500

Contribution margin      $407,550                      $762,500

Now the profit would be

= Total contribution margin - total fixed cost

= $407,550 + $762,500 - $111,000

= $1,059,050

The sales are variable cost are come by multiplying the units with its price per taco.

4 0
3 years ago
Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising co
Deffense [45]

Answer:

(i) $34,200

(ii) $55,860

(iii) $23,960

Explanation:

Total sales = $ 240,000 + $392,000 + $168,000

                  = $800,000

Department 1:

sales = $240,000

Percent of total = sales ÷ Total sales

                          = $240,000 ÷ $800,000

                          = 0.3

Allocated amount = % of total × advertising to allocate

                              = 0.3 × $114,000

                              = $34,200

Department 2:

sales = $392,000

Percent of total = sales ÷ Total sales

                          = $392,000 ÷ $800,000

                          = 0.49

Allocated amount = % of total × advertising to allocate

                              = 0.49 × $114,000

                              = $55,860

Department 3:

sales = $168,000

Percent of total = sales ÷ Total sales

                          = $168,000 ÷ $800,000

                          = 0.21

Allocated amount = % of total × advertising to allocate

                              = 0.21 × $114,000

                              = $23,940

3 0
3 years ago
Describe how you can prepare yourself to become an effective manager in the areas of communication, collaboration, and cultural
NISA [10]
In my term i would say communication is truly the best key of all basically communications makes you understand certain prospectives and gets you to places  and helps you with others.
6 0
4 years ago
If Frica Morrison a machine operator at Stanley Foundry, makes $513.66 a week and has 33 in FIT withheld, how many allowances ha
exis [7]

Using the <em>Single's Person Weekly payroll</em> distribution , the number of allowances claimed by Frica Morrison will be 3.

<u>Given that</u> :

  • Weekly pay = $513.66
  • Federal income tax withheld = 33

<em>From the payroll table</em>, Frica's weekly pay falls inbetween $510 - $520 ; checking along the row, we can see from the <em>table(attached)</em> that Federal income tax withheld of $33 falls under the 3 allowances claimed.

This means that for Frica to have $33 withheld from his <em>weekly pay of $513.66</em>, then he must have claimed 3 allowances.

Therefore, the Number of allowances claimed by Frica Morrison is 3.

Learn more :brainly.com/question/17092810?referrer=searchResults

4 0
2 years ago
No real question. But anyone know this answer, If your are a doctor, DO ANY of you know how to bring a frozen person back to lif
Ilia_Sergeevich [38]

Answer:

prob melt them with fire but you gotta be careful because you can burn then if not i guess just use potions or something?

Explanation:

7 0
3 years ago
Read 2 more answers
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