1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elis [28]
2 years ago
15

Calculate Cash FlowsNature’s Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden

tool is expected to generate additional annual sales of 1,600 units at $75 each. The new manufacturing equipment will cost $257,000 and is expected to have a 10-year life and $17,000 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:Direct labor $12.00Direct materials 30.00Fixed factory overhead—depreciation 15.00Variable factory overhead 4.50 Total $61.50Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Use a minus sign to indicate cash outflows.
Business
1 answer:
snow_tiger [21]2 years ago
6 0

Answer:

Net cash flow for year 1 = ($217,400)

Net cash flow for year 2-9 = $39,600

Net cash flow for last year = $56,600

<u />

Explanation:

                                               Year 1           Year 2-9       Last year

Initial investment               -$257,000

<em>Annual revenue                  $120,000       $120,000     $120,000 </em>

<em>Selling expense                 -$6,000         -$6,000       -$6,000 </em>

<em>Cost of manufacture          -$74,400       -$74,400     -$74,400 </em>

Net operating cash flows   <u>$39,600</u>        <u>$39,600</u>      <u>$39,600</u>

Total for year 1                   <u>-$217,400</u>

Total for year 2-9                                      <u>$39,600</u>

Residual value                                                                <u>$17,000</u>

Total for last year                                                           <u>$56,600</u>

You might be interested in
Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September
Aleks04 [339]

Answer:

D.$54,000

Explanation:

A flexible budget is a one which changes or adjusts with change in actual activity. The flexible amount is more reliable than the static amount. The static budget is one which is not adjusted with level of real activity. The machine hours are used as basis of adjustment for flexible budget. The amount of fixed overhead budgeted allocation cost is adjusted based on machine hours according to actual machine hours of 985 hours.

5 0
3 years ago
Product-oriented layout is characterized by high demand for the same or similar products. Another name for this layout is
dexar [7]

Answer:

Repetitive layout

Explanation:

In simple words,  Product-oriented layouts can be understood as the model that is  grouped around items with equivalent high low commodities or families. Consumer demand is strong enough to warrant the high investment in specialized equipment in such a design. The commodity is standardized or entering a life cycle period that justifies investments in advanced equipment.

3 0
2 years ago
In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from histori
pychu [463]

Answer:

$19,708,745

Explanation:

We first have to calculate the present value of the bonds:

Nper = 20 (10 years x 2 payments per year)

R = 11% / 2 = 5.5%

Payment = 83 / 2 = 41.50

Future value = 1,000

PV = ?

To calculate the present value we can use an excel spreadsheet and the present value function =PV(5.5%,20,41.5,1000) = $838.67

Now we calculate how many bonds were issued = $23,500,000 / $1,000 = 23,500 bonds.

To determine the market value of the debt outstanding we multiply the present value of the bonds times the total number of bonds outstanding

= $838.67 x 23,500 = $19,708,745

8 0
3 years ago
What is one reason that a person might want to be an entrepreneur?
kupik [55]

Answer:

They can be their own boss.

6 0
3 years ago
Read 2 more answers
INVESTOR Corp. was interested in investing in bonds and, on 01/01/2012 purchased 8% bonds dated January 1, 2012. These bonds had
seropon [69]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

5 0
2 years ago
Other questions:
  • Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump produ
    13·1 answer
  • Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as
    9·1 answer
  • If amazon had decided to design and manufacture the kindle and all its components in the united states, what do you think the co
    13·1 answer
  • There are many food carts near Mark’s university. Mark and his friends regularly buy hot dogs from Jeff’s cart. Recently, Andrea
    8·1 answer
  • A municipal bond is paying a 6 percent annual yield. An equivalent risk corporate bond is paying 7 percent. Investors with a tax
    8·1 answer
  • The practice of an existing firm replacing one or more of its supplier markets with its own hierarchical structure for creating
    5·1 answer
  • Common stock with a total par value of $50,000 (par value of $0.50 per share) have been issued, and 5,000 shares of treasury sto
    7·1 answer
  • After multiple years of building a business in the same location, Timothy has
    13·1 answer
  • Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $10,000, and $
    15·1 answer
  • Geralds manufacturing firm sold goods worth $6000 to some customers on credit in the month of January. His customers plan to pay
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!