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Dmitrij [34]
2 years ago
14

Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and re

venues, Barney projects a net cash inflow from the retreading machine of $2,700 annually for 7 years. Barney hopes to earn a return of 9% on such investments. What is the present value of the retreading operation
Business
1 answer:
UNO [17]2 years ago
5 0

Answer:

the present value is $13,588.97

Explanation:

The computation of the present value of the retreading operation is shown below:

As we know that

Present value = Future value ÷  (1 + rate of interest)^time period

= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7

= $13,588.97

Hence, the present value is $13,588.97

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Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX E
Nuetrik [128]

Solution :

1. Allocation on the basis of $\text{Direct labor hours}$

                                              LX                               EX

Direct Material                    125000                       90000

Direct $\text{labor}$ cost                  90000                       60000

Manufacturing overhead      $81000$                        $121500$

                              (202500/5000 x 2000)     (202500/5000 x 3000)

Total cost                             296000                       271500

Units produced                       50                               30

Cost per unit                          5920                           9050

2. Allocation on the basis of $\text{Direct labor costs}$:

                                              LX                               EX

Direct Material                    125000                       90000

Direct labor cost                  90000                       60000

Manufacturing overhead    121500                       81000

                        (202500/150000 x 90000)     (202500/150000 x 60000)

Total cost                             336500                       231000

Units produced                       50                               30

Cost per unit                          6730                           7700

3. Allocation on the basis of $\text{machine hours}$

                                              LX                               EX

Direct Material                    125000                       90000

Direct labor cost                  90000                       60000

Manufacturing overhead    112500                        90000

                              (202500/2700 x 1500)     (202500/2700 x 1200)

Total cost                             327500                       240000

Units produced                       50                               30

Cost per unit                          6550                          8000

5 0
3 years ago
New England Co. had net cash provided by operating activities of $351 ,000; net cash used by investingactivities of $420,000; an
Ira Lisetskai [31]

Answer:

d. $248,000

Explanation:

beginning cash balance            27,000

operating activities 351,000

investing activities (420,000)

financing                 250,000

cash generate during the year 181,000

ending cash balance                208,000

<u>Note:</u>

The information of the sale of land is contained with the investment activities.

The proceeds from sales are in the operating activities.

<u>We just need to calculate using the total for each activity.</u>

7 0
3 years ago
Your cousin is currently 11 years old. She will be going to college in 7 years. Your aunt and uncle would like to have $ 95 comm
zalisa [80]

Answer:

$72,679.976

Explanation:

The computation of present value is shown below:-

Present value = Future value ÷ (1 + Rate of return)^Number of years

= $95,000 ÷ (1 + 3.9%)^7

= $95,000 ÷ (1 + 0.039)^7

= $95,000 ÷ (1.039)^7

= $95,000 ÷ 1.307100055

= $72,679.97553

or

= $72,679.976

Therefore for computing the present value we simply applied the above formula.

5 0
3 years ago
Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour by hand, w
Lapatulllka [165]

Answer:

B

Explanation:

Mike should be assigned to operate the new machine because his productivity will increase from 60 chicken breasts per hour to 100 chicken breasts per hour.

The average hourly productivity of the team is calculated by taking the average of the two hourly productivities:

\frac{(100 + 120)}{2} = 110

6 0
3 years ago
You hold currency from a foreign country. If that country has a higher rate of inflation than the United States, then over time
Anuta_ua [19.1K]

Answer:

d. fewer goods in that country and buy fewer dollars.

Explanation:

In the case when the currency is hold from the foreign country and if the country contains the high inflation rate as compared with the united states so here the less goods in that country should be purchased at less dollars that means it shows the positive relationship between the goods and the dollars value

Therefore as per the given situation, the option d is correct

3 0
2 years ago
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