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MrRissso [65]
3 years ago
15

Bob Jensen Inc. purchased a $650,000 machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all

it can manufacture in the next 10 years. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The machine is expected to have a 10-year useful life with no salvage value. Jensen uses straight-line depreciation. Jensen uses a 10% discount rate in evaluating capital investments, the investment is subject to taxes, and the projected pretax operating cash inflows are as follows:
Data
Purchase price of machine $650,000
Expected useful life in years 10
Expected net cash inflow per year $150,000
Discount rate 12%

Required:
Compute the payback period, under the assumption that cash inflows occur evenly throughout the year.
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer:

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Explanation:

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For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos
bezimeni [28]

Answer:

The amount of overhead debited to Work in Process Inventory should be: a. $182,00

Explanation:

The Overheads are Applied in the Manufacturing Costs as:

Budgeted Rate × Actual Activity for the Month

At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)

In our Case,  the predetermined overhead rate is 70% of direct labor cost

<em>Thus we need to find the Direct Labor Cost first</em>:

Total Labor Costs               $360,000

<em>Less </em>Indirect Labor Costs<em>  </em>$100,000

Direct Labor Cost              $260,000

<em>Therefore Overheads applied would be determined as:</em>

= $260,000 × 70%

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6 0
3 years ago
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In its third year, a project is expected to generate earnings before interest, taxes, depreciation, and amortization of $283,104
Lesechka [4]

Answer:

$195,751

Explanation:

Calculation for the project's expected operating cash flow

The first step will be to find the EBIT

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EBIT =(Earnings before interest, taxes, depreciation, and amortization -Depreciation expense)

Let plug in the formula

EBIT= 283,104 - 53,228

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Second step is to find the NOPAT using this formula

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NOPAT= 229,876(1 - 0.38)

NOPAT= 142,523

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Using this formula

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Let plug in the formula

Operating cash flow = 142,523 + 53,228

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3 0
3 years ago
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Sergio039 [100]

Answer:

Option (A) is correct.

Explanation:

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                    = $0.25 × 1,000,000

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Total revenue = No. of banana sold × Selling price of each banana

                        = 1,000,000 × $0.50

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Accounting profit = Total revenue - Explicit cost

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3 years ago
9. An expenditures incurred on factors of production
zimovet [89]

Answer:

A) cost

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7 0
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The primary goal of the consumer financial protection bureau is
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7 0
3 years ago
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