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Vikentia [17]
3 years ago
15

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $175,846, net annual cash flows

$37,300, and present value factor of cash inflows for 10 years 5.02 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made.
Net present value $
The investment be made.
Business
1 answer:
Luba_88 [7]3 years ago
5 0

Answer:

11400

the investment should be made because NPV is positive

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV =( Net annual cash flows x present value factor)  - cost

(37300 x 5,02 ) - $175,846 = 11400

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Mammoth Foods, a major agricultural corporation, recently purchased MJS Organic Foods Co. MJS was established six years ago and
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Incomplete question. The option read;

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Answer:

<u> A) star</u>

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Among all the quadrants, the Star quadrant is meant for investments with great future potential. We could recall that there's a positive projection for MJS, it was said that the<em> "fruit market is expected to have a double-digit growth rate over the next decade." </em>Hence,  MJS would most likely be classified as a star.

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Blue Spruce Company is considering two new projects, each requiring an equipment investment of $101,800. Each project will last
Lunna [17]

Answer:

50,400 44,400

0.79719

1.69005

5 0
3 years ago
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Sound Company reported the following amounts for May, 2008: Direct materials purchased $254,000 Beginning raw materials inventor
Yakvenalex [24]

Answer:

$254,100

Explanation:

The computation of the  cost of direct materials used in production is shown below:

=  Direct materials purchased + Beginning raw materials inventory  - Ending raw materials inventory - Indirect materials requisitioned and used

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6 0
3 years ago
BE22-4 Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,0
anzhelika [568]

Answer:

\left[\begin{array}{cccc}Range&80,000&100,000&120,000\\ Materials&400,000&500,000&600,000\\ Labor&480,000&600,000&720,000 \\ Overhead&640,000&800,000&960,000 \\ Variable&1,600,000&2,000,000&2,400,000 \\ Depreciation&200,000&200,000&200,000 \\ Supervision&100,000&100,000&100,000 \\ Fixed&300,000&300,000&300,000\\ Total&1,960,000&2,300,000&2,700,000\\\end{array}\right]

Explanation:

We multiply the variable component for each relevant range.

Then for the fixed cost, we post the total.

Notice it is given for 1,200,000 units

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Supervisor  1,200,000 x 1 = 1,200,000 = 100,000 per month

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