Answer: $227,700
Explanation:
The total recorded cost would include the actual cost of the equipment as well as every other cost that was incurred to transport the equipment and get it ready fir use.
Cost that will be recorded is therefore:
= Invoice cost + Installation cost + Delivery cost + Sales tax
= 190,000 + 20,000 + 4,000 + 13,700
= $227,700
Answer:
The development should be not be considered as it not a relevant cash outflow
The $254,000 sale price for existing line is a relevant cash inflow
Cash flows:
Year 0 -$$1,536,000
Years 1-13 $746,000
Explanation:
The development cost has already been incurred,it is not a relevant cash outflow since the cash flows to be considered are those would be incurred in the future in respect of the new line of club heads.
The sale price of the existing line is a relevant inflow as it would only be received as a result of switching to the new line of club heads.
The relevant cash flow from year 1 to 13 is computed thus:
year 0 cash outflow would be the cost of new equipment less the sale price of existing line i.e -$1,790,000+$254,000=-$1,536,000
In years 1 to 13 ,there would cash inflow of $746,000 in each year
Answer:
1. False
2. A. financing decision
Explanation:
The capital budgeting refers to the investment in long term assets like machinery, new process, plants, machine replacement that can increase productivity and create a better return in the near future. There are various processes to determine it. It can be by net present value, internal rate of return, etc
The financial decision belongs to a certain decision that illustrates the allocation of financing and funding. It also helps in paying the investment and keeping expenses that can increase the wealth of the shareholder.
It is made up of decisions related to capital budgeting, working capital management. The working capital displays the current assets and current liabilities According to the case, as the small investment project is paid through a $1 million that results in an increase in a short term bank loan
The majority of conventional portfolio-analysis methodologies evaluate SBUs based on two crucial factors: the market or industry an SBU operates in is appealing, and an SBU's position within that market or industry is strong.
What is Strategic Business Unit?
A strategic business unit, or SBU for short, is a fully operational part of an organization with its own mission and goals. An key section of the organization, a strategic business unit typically functions independently. It provides updates on its operational status to the headquarters. Although a strategic business unit, or SBU, is an independent company, it is required to report directly to the organization's headquarters on the status of its operations. It is independent and centered on a particular market. It is large enough to have independent support divisions for things like human resources and training. Having an SBU has a number of advantages. For businesses with a variety of product structures, this strategy is most effective. Proctor and Gamble, LG, and other businesses are the best examples of SBU. Under one roof, these businesses house numerous product categories. For instance, the company LG produces consumer durables.
To learn more about Strategic Business Unit
brainly.com/question/24684801
#SPJ4
