Answer:
how is your day going I am the cootie man how is your day going on in the Gucci mane how
Explanation:
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Answer:
Testerman Construction Co.
Internal rate of return method in analyzing capital expenditure:
Present value of expenditure = $149,630
Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)
NPV = $0 (PV of cash outflow - PV of cash inflow)
Therefore, the IRR = 20%
Explanation:
a) Data and Calculations:
Investment cost = $149,630
Annual net cash flows = $45,000
Investment period = 6 years
Annuity of future cash flows = 3.3251
b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.
Depreciation is a systematic write-off of the cost of a tangible asset that is listed on the income statement.
Answer:
$682,000
Explanation:
Where the amount absorbed is more than the actual overhead, it means that there is over absorption of overhead.
The cost of goods sold is inflated to over absorption value when it comes to over absorption.
Therefore;
Adjusted cost of goods sold = Cost of goods sold - Over applied manufacturing overhead
= $730,000 - $48,000
= $682,000
