Contingency planning is also known as Group of answer choices a trend analysis. scenario planning and scenario analysis. organiz
1 answer:
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Answer:
Operating profit will be equal to $214500
Explanation:
We have given sales = $2150000
Cost of goods sold = $1500000
It is given that selling and administrative expense is 10% of the sale
So selling and administrative expense will be equal; to $
Depreciation is 55 of total assets of $4410000
So depreciation $
So operating profit will be equal to = $2150000 - $1500000-$215000-$220500 = $214500
So operating profit will be equal to $214500
Answer:
The intangible benefit should generate 39,164.92 dollars of cahs flow per year
or a present value of 211,071.06 dollars
Explanation:
The company should evaluate teh investment based on wether or not the required return on the 15% investment is achieve or not:
We should calculate the target PMT and the proceed to an estimation of how muich are this intangible benefits:
PV 750,000
time 7 years
rate 7% = 7/100 = 0.07
C $ 139,164.915
explicit cost savings: 100,000
<u>intangible benefit to make the investment worthwhile: </u>
139,164.92 - 100,000 = 39,164.92
we can also solve for the present valeu of the annual intnagible benefit as they can vary every year:
C $ 100,000
time 7 years
rate 0.07
PV $538,928.9402
investment 750,000
cost savings PV: (538,928.94)
PV of the intangible benefit: 211,071.06