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Nimfa-mama [501]
3 years ago
6

Mattice Corporation is considering investing $720,000 in a project. The life of the project would be 11 years. The project would

require additional working capital of $22,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $154,000. The salvage value of the assets used in the project would be $32,000. The company uses a discount rate of 18%. (Ignore income taxes) Click here to view Exhibit 12B-1 and Exhibit 128-2 to determine the appropriate discount factor(s) using the tables provided Required Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Business
1 answer:
lbvjy [14]3 years ago
3 0

Answer:

The Project should be rejected.

The Net present value is lower than zero. Meaning the returns on the investment yields a loss, as we are not able to cover our initial investments.

Explanation:

The Present value of the inflow and outflow should be considered before deciding the viability of the project.

Using the Net Present Value approach, we will want to consider against the outflows and at a certain cost of capital/rate of return if this projects meets at least the minimum threshold of breaking even. At this point the net cash flow would be at least zero for the project to be accepted.

Kindly review the document attached for detailed workings.

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Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
2 years ago
What is a student for a company ?
Alinara [238K]

Answer:

I don't understand what you are asking

8 0
2 years ago
Read 2 more answers
Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in
Lera25 [3.4K]

Answer:

lower; higher.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).

This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.

7 0
2 years ago
Sometimes employers discover evidence of employee ___ after someone has sued them for discrimination. Employers may try to use t
EastWind [94]

Answer:

The answers are,

1st Blank - a. harassment

2nd Blank - f. avoid

3rd Blank - e. limit

Explanation:

Harassment can come in many forms in a n organization, they could be sexual harassment, verbal harassment, power harassment, gender discrimination, etc. Legal actions can be taken against an employer for not enforcing necessary requirements to prevent them.

Such lawsuits cannot be avoided by the employers but through legal means they can seek to mitigate or limit the damages they have to pay to the affected employee.

5 0
3 years ago
Payment for the early retirement of long-termbonds payable (carrying amount $370,000) $375,000Distribution in Year 2 of cash div
klasskru [66]

Answer:

Cash used for financing activities 356,000

Explanation:

extinguish of bonds payable (375,000)

preferred dividends                  (31,000)

proceeds from TS                     50,000

Cash used for financing activities 356,000

The conversion do nt involve cash, so it is not included in the cash flow statement.

The carrying ammount, gain and losses are not relevant for the cash flow statement.

We have to focus in the cash movements only.

7 0
3 years ago
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