Send it to the IRS before April 15th.
Answer and Explanation:
The computation is shown below;
a) The In-house purchasing cost last year is
= Fixed costs + Variable costs
=$85,000 + Total number of purchase orders × cost per order
= $85,000 + 1400 × 15
= $106,000
b)
The outsourcing cost is
Outsourcing cost = Fixed costs +Variable costs
= $100,000 + Total number of purchase orders × cost per order
= $100,000 + 1400 × 5
= $107,000
c) Total number of purchase orders = 1600
In-house purchasing cost = 85,000 + 1600 × $15 = $109000
Outsourcing cost = $100,000 + 1600 × $5 = $108000
Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.
Answer:
The lump sum be of $237,228.84
Explanation:
In order to calculate how large must the lump sum be we would have to use and calculate the formula of Present value of annuity due as follows:
Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075
Present value of annuity due=$25,000*9.489153726
Present value of annuity due=$237,228.84(Approx)
The lump sum be of $237,228.84
Answer:
Business Plan
Explanation:
I hope this is one of the choices!!
Answer:
-$18,375
Explanation:
The computation of the net present value is shown below;
In the case when the operating cash flow is $56,200 for 5 years and the rate of return is 15.2% so the present value is $187,502 by using the financial calculator
In the case when the net after tax salvage value is $67,000 for the 5 year and the rate of return is 15.2% so the present value is $33,023 by using the financial calculator
Now the net present value is
= $18,7502 + $33,023 - $238,900
= -$18,375
