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IRISSAK [1]
2 years ago
9

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175, 846, net annual cash flow

s $37, 300, and present value factor of cash inflows for 10 years 5.02 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made?
Business
1 answer:
alexira [117]2 years ago
6 0

Answer:

NPV = $11400

As the NPV from the project is positive, the investment should be made.

Explanation:

The NPV or net present value is an important metric that is used for project and investment evaluation. The NPV is the present value of the series of cash flows provided by the project less the initial cost incurred to undertake the project. NPV can be calculated as follows,

NPV = (Annual Cash Flow * Present value factor) - Initial cost

NPV = (37300 * 5.02)  -  175846

NPV = $11400

As the NPV from the project is positive, the investment should be made.

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This problem has been solved!
liubo4ka [24]

Answer:

A Overhead:          180,634

B Production Cost: 214,410

C Period Cost:           71,091

Explanation:

<u>Manufacturing overhead</u>

Factory utilities                                   16,942

Depreciation on factory equipment  13,387

Property taxes on factory building      3,252

Indirect factory labor                          49,656

Repairs to office equipment                 2,179

Indirect materials                               84,468

Factory repairs                                     2,465

Factory manager's salary                    8,285

Total:                                                180.634

<u>Product Cost</u>

Direct labor                         71, 743

Direct materials used        142,667

Total:                                  214,410‬

<u>Period Cost </u>

Sales salaries                                 47, 310

Depreciation on delivery trucks     4,546

Advertising                                     15, 712

Office supplies used                       3,523

Total:                                               71,091

5 0
3 years ago
In order to produce 100 pairs of oven gloves, Marcia incurs an average total cost of $2.50 per pair. Marcia’s marginal cost is c
anygoal [31]

Answer:

option (d) $200.00

Explanation:

Average total cost for 100 pairs = $2.50

Marginal cost for every pair = $10.00

Now,

Total cost = Fixed cost + Variable cost

or

Fixed cost = Total cost - variable cost

or

Fixed cost = (Average total cost × 100) - (Marginal cost × 100)

= ($2.5 × 100) - ($1 × 100)  

= $250 - $100  

= $150

thus,

Total cost to produce 50 pairs of oven gloves

= fixed cost + variable cost

= $150 + (50 × $1)

= $150 + $50

= $200

Hence,

option (d) $200.00

6 0
3 years ago
With the _____ approach, an organization chooses an outsourcing company in a neighboring country, such as when a U.S. organizati
jeka57 [31]

Answer:

a. nearshore outsourcing

Explanation:

Nearshore outsourcing is a business practice related to transferring certain activities and services to people and organizations in neighboring countries.

Since Canada and Mexico are neighboring countries of the US, this is nearshore outsourcing. On the other hand, offshore outsourcing is a type of outsourcing that transfers the activities on to farther countries. In this example, offshore countries would be India or Ukraine.

5 0
3 years ago
Sales and cost data are promising internal secondary data for many research problems. In B2B contexts, the______ is a gold mine
Alona [7]

Answer:

The correct answer is letter "A": Sales invoice.

Explanation:

In a Business-to-Business (B2B) transaction sales invoices are provided to record the goods or services exchanged between entities or the record the services rendered from one company to the other. The information included in the invoice reflects the details of the operation such as <em>good or service acquired, quantity, date, </em>and <em>price</em>. This feed could help businesses to predict the future behavior of the other entity or to provide profitable suggestions to them.

4 0
3 years ago
North Dakota Corporation began operations in January 2020 and purchased a machine for $27,000. North Dakota uses straight-line d
andrew-mc [135]

Answer and Explanation:

The Journal entry is shown below:-

Income tax expense Dr, $40,025

      To Deferred tax liability $2,025

      To Income tax payable $38,025

(Being income taxes for the year 2020 is recorded)

Working note:-

Excess depreciation = ($27,000 × 50%) - ($27,000 ÷ 4)

= $13,500 - $6,750

= $6,750

For Deferred tax liability = $6,750 × 30%

= $2,025

For Income tax payable = ($157,000 - $23,500 - $6,750) × 30%

= $126,750 × 30%

= $38,025

6 0
3 years ago
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