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3 years ago

Incremental costs - Initial and terminal cash flow

Business

1 answer:

Black_prince [1.1K]3 years ago

5 0

Answer:

c. $504,000

Explanation:

Total cost of new equipment = Price of equipment + Shipping & Installation costs = $3,200,000 + $160,000 = $3,360,000

Increase in working capital = Increase in inventories & account receivables - Increase in accounts payable = $640,000 - $256,000 = $384,000

Total Initial net investment outlay = $3,744,000 ($3,360,000+$384,000)

Project terminal cash-flow = Sale value of equipment (after tax) + Recovery of working capital = $200,000*(1-0.40) + $384,000 = $120,000 + $384,000 = $504,000

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3 years ago

A delivery of packaged frozen vegetables should be rejected if

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3 years ago

What does it mean to do time analysis which is one of the principles referred to ?

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3 years ago

Which of the following statements is true of break-even point?

Misha Larkins [42]

Answer:

D) It helps managers exercise control after the product has been created and is ready for marketing.

Explanation:

Break-even point is the point where the total cost matches the total revenue,it is helpful to managers in order to control the business,it helps them to know when to implement certain changes or favorable incentives for improved sales and overall revenue.

It is calculated by dividing the total fixed cost/total revenue for one unit minus the variable cost for one unit.

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3 years ago

A manufacturing operations consists of 13 operations. However, five of the 13 machining operations must be completed before any

user100 [1]

Answer:

4,838,400

Explanation:

Assume there are already Two sets of machine working.

In the first set, there is 5 machine Operates and in another set, There are 8 machines (13-5) operates.

So Total Production sequence = First sets all combinations x Second sets all combination

= 5! x 8!

= ( 5 x 4 x 3 x 2 x 1 ) x ( 8 x 7 x 6 x 5 x 4 x 3 x 2 x 1 )

= 120 x 40,320

= 4,838,400

So , total number of machine combination is 4,838,400.

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3 years ago