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love history [14]
3 years ago
8

M Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 380,

000 Annual cash flow $ 133,000 per year Expected life of the project 4 years Discount rate 13 % Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to:
Business
1 answer:
gtnhenbr [62]3 years ago
5 0

Answer:

NPV = $262,604.7

Explanation:

<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>

NPV of an investment:

NPV = PV of Cash inflows - PV of cash outflow

PV of annuity= 1 -(1+r)^(-n)/r × Annual cash flow

r- discount rate, n- number of years

PV of cashinflow = 133,000 × (1- 1.13^(-4))/0.13 =395,604.6863

NPV  =  395,604.6863  - 133,000= 262,604.7

NPV = $262,604.7

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Answer:

$18,000 F

Explanation:

Actual overhead– Overhead Budgeted=

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Actual overhead=$194,000

Overhead Budgeted=$212,000

$194,000–$212,000

=$18,000 F

(40,000 ×$3.80) + $60,000

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3 years ago
Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrig
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Answer:

Explanation:

PREPARE COST OF GOODS MANUFACTURED :

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Add : raw material purchase 184500

Less : Ending raw material (52700)

Raw material consumed 169800

DIrect labour 42000

Factory overhead

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Factory utilities 10200

Depreciation factory equipment 16800

Indirect labour 48000

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Total manufacturing overhead 148800

Total manufacturing cost 360600

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Cost of goods manufactured

INCOME STATEMENT :

Sales revenue 1350000

Cost of goods sold

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goods available for sale 422450

Less : endin finished goods inventory (68800)

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Less : selling commission (40500)

Less : dep on office equipment (2400)

Less : office suppplies used (1600)

Less : other administrative exp (72000)

Less : Salaries exp (325000) (495500)

Net income 500850

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8 0
3 years ago
A company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, the company'
Alchen [17]

Answer:

c. $4,025,200

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= April sales × cash sales percentage + April sales × credit sales percentage × collection month percentage + March sales  credit sales percentage × Following month collection percentage

= $4,000,000 ×30% + $4,000,000 × 70% × 40% + $4,200,000 × 70% × 58%

= $1,200,000 + $1,120,000 + $1,705,200

= $4,025,200

Since cash sales are 30% , so the credit sales would be 70%

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