If nike started selling new shoes

Rooney, Inc. is considering the purchase of a new machine costing $700,000. The machine's useful life is expected to be 8 years

Fiesta28 [93]

Answer:

NPV = $74,951.80

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $700,000

Cash flow each year from 1 year 8 = $156,000

I = 12%

NPV = $74,951.80

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0

3 years ago

During the month, 9,000 units of product were manufactured and 8,500 units of product were sold. On August 1, AAA Plumbing carri

julsineya [31]

Answer:

(a) Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured.

The answers are as follows:

Cost of goods manufactured = $432,000

Cost per unit manufactured = $48

(b) Calculate the cost of goods sold during August.

Answer:

Cost of goods sold during August = $408,000

(c) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

Answer:

The difference is shown in asset side in inventories section as finished goods inventory.

Workings are attached as follows:

Explanation:

(a) Calculate the cost of goods manufactured during August and the average cost per unit of product manufactured.

Cost of goods manufactured:

The cost of goods manufactured (COGM) is also called cost of goods completed
It calculates the total value of inventory that was produced during the period and is ready for sale.
This is the total amount of expenses incurred to turn work in process inventory into finished goods.

How to calculate the cost of goods manufactured?

The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor, and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.
This formula will leave you with only the cost of goods that were completed during the period.

(b) Calculate the cost of goods sold during August.

Cost of goods sold:

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company.
This amount includes the cost of the materials and labor directly used to create the good.
It excludes indirect expenses, such as distribution costs and sales force costs.

(c) Where in the financial statements will the difference between cost of goods manufactured and cost of goods sold be classified?

When the goods are sold from the cost of goods manufactured, this leaves us with the balance of inventory (closing stock). Closing stock is the current asset and this appears in the current assets portion of Statement of Financial Position (SOFP) - known as balance sheet.

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4 0

3 years ago

It is a type of financial intermediary that pools savings of individuals and makes them available to business and government use

Kobotan [32]

The correct answer to this open question is the following.

Although there are no options provided we can answer the following.

It is a type of financial intermediary that pools the savings of individuals and makes them available to business and government users. Funds are obtained through the sale of shares.

Here we are talking about mutual funds.

When we are talking about a mutual fund in financial terms, this means that a pool of money has been collected from many people who like to invest in money market instruments, bonds, or stocks. The investment is managed by professionals who are experts in money managing and always look to gain profitable interests to their clients. Regularly, this money manager -the expert- prepare a particular investment portfolio to diversify the money of its clients, trying to generate the largest earnings.

7 0

3 years ago

Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2018 with a performance

dolphi86 [110]

Answer:

b. $995,000

Explanation:

The computation of the transaction price based on the expected value approach is shown below:

The formula is

= (Building cost of warehouse + bonus) × probability percentage

Date Calculation Amount

July 31, 2018 ($950,000+$50,000) × 0.65 $650,000

August 7, 2018 ($950,000+$40,000) × 0.25 $247,500

August 14, 2018 ($950,000+$30,000) × 0.05 $49,000

August 21, 2018 ($950,000+$20,000) × 0.05 $48,500

Total $995,000

Since the bonus is reduced $10,000 each week so $10,000 is deducted for every delayed week

4 0

3 years ago

I put $50 from every paycheck (every two weeks) into my savings account, which earns 0.8% annual interest compounded every two w

pishuonlain [190]

Answer:

He will have $6,765.228 in his savings account

Explanation:

Step 1: Determine the number of weeks in a year

1 year=52 weeks

5 years=52×5=260 weeks

Step 2: Determine total earnings in 5 years

Total earnings=earnings per 2 weeks×total number of weeks/2

where;

Total earnings=unknown

earnings every 2 weeks=$50

total number of weeks=260

replacing;

Total earnings=50×260/2=$6,500

Step 3: Determine total earnings in 5 years when compounded with interest

Using the formula;

A=P(1+r/n)^nt

where;

A=Final amount

P=initial amount

r=annual interest rate

n=number of times the rate is compounded annually

t=number of years

In our case;

A=unknown

P=$6,500

r=0.8%=0.8/100=0.008

n=52/2=26

t=5 years

replacing;

A=6,500(1+0.008/26)^(26×5)

A=6,500(1+0.000308)^130

A=6,765.228

He will have $6,765.228 in his savings account

8 0

3 years ago