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Helga [31]
2 years ago
6

LO 3 Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would

generate $2,650 in annual savings of direct labor costs over its 20-year life. At the end of 20 years, the press could be sold for $500. Chad's required rate of return is 16%. What is the machine's net present value?
A) $1,813
B) $(1,813)
C) $(1,839)
D) $(1,339)
Business
1 answer:
devlian [24]2 years ago
4 0

Answer:

B) $(1,813)

Explanation:

Initial investment = 17,550

Annual cashflows = 2,650

Terminal Cashflow = 500

You can solve for NPV using financial calculator with the following inputs;

CF0= -17,550

C01 = 2,650

F01 (Frequency) = 19

C02 = 2,650 + 500 = 3,150

I=16%

Net present value; NPV = -1,812.879 or -1,813 rounded off to the nearest whole number.

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Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of g
solmaris [256]

Answer:

(A) 352,410

(B) 328,910

(C) 474,120

(D) 461,770

(E) 165,000

(F) 175,000

Explanation:

1.- WIP, August 1st:        $    19,660  $   41,650           (e)

2.- Cost added               $ 332,750        (c)         $ 1,075,000

3.- Subtotal                            (a)        $ 515,770  $ 1,240,000

4.- WIP, August 31th       $  23,500   $  54,000         (f)

5.- COGM                              (b)              (d)         $1,068,000

The identity to solve for this is as follow:

$$beginning WIP + cost added = COGM +  ending WIP

<u>The third row is the sum of the left side of the of the equation.</u>

beginning WIP + cost added.

(a) 332,750 + 19,660 = 352,410

(c) 515,770 - 41,650 = 474,120

(e) 1,240,000 - 1,075,000 = 165,000

COMG will be third row less fourth row

the ending WIP subtracted from the left side

(b) 352,410 - 23,500 = 328,910

(d) 515,770 - 54,000 =  461,770

(f) 1,240,000 - 1,068,000 = 175,000

8 0
3 years ago
You deposit $100 on a bank 10% interest rate account for one year. How much do you get in one year time?
katen-ka-za [31]

Answer:

$10

Explanation:

10% of 100 is 10. 100÷10=10

8 0
2 years ago
According to the FTC, how does the ECOA empower individuals?
icang [17]
<span>Credit cannot be denied based on unrelated factors.</span>
5 0
3 years ago
Read 2 more answers
Why is it important to keep your own financial records?
viva [34]
Its great for documentation on income tax returns. A bank may require financial documentation of income statement, a cash flow statement, or a balance sheet before loaning you money. It will help identify sources of income and track debts.
5 0
3 years ago
Petrus Framing's cost formula for its supplies cost is $1,860 per month plus $11 per frame. For the month of March, the company
MissTica

Answer:

$355 unfavorable

Explanation:

Budgeted supplies cost was [$1,860 + (635 frames x $ 11)] = ($1,860 + $6,985) = $8,845

Actual supplies cost was $9,200, so the variance was = budgeted cost - actual cost = $8,845 - $9,200 = $355 unfavorable

Since the actual supplies cost was higher than the budgeted supplies cost, then the variance must be unfavorable (because more money was spent than expected).

4 0
2 years ago
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