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Yakvenalex [24]
3 years ago
10

Peng Company is considering an investment expected to generate an average net income after taxes of $2,600 for three years. The

investment costs $54,000 and has an estimated $7,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)
Business
1 answer:
daser333 [38]3 years ago
3 0

Answer:

NPV = $-42,124.72

Explanation:

The new present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 =  $-54,000

Cash flow each year in year 1 and 2 = $2,600

Cash flow in year 3 = $2,600 +  $7,200 = $9,800

I = 10%

NPV = $-42,124.72

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Explanation:

The best example of a monitoring control will be that the management prepares a detailed analysis of gross margin per store and investigates any store that shows a significantly lower gross margin.

The gross margin is regarded as the net sales revenue after the cost of goods sold has been deducted. In a situation where there's variation between the value, then it calls for check to ascertain if any fraudulent activity took place.

7 0
2 years ago
Several years ago, the City of Russell issued $7 million of 6 percent serial bonds at 101. Principal payments of $350,000 are du
Sphinxa [80]

Answer:

the interest payable is $210,000

Explanation:

The computation of the interest payable is shown below:

= Principal payments × rate of interest × no of months ÷ total no of months × time period

= $350,000 × 6% × 6 months  ÷ 12 month × 20years

=  $210,000

hence, the interest payable is $210,000

The same should be considered and relevant

8 0
3 years ago
For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a
gulaghasi [49]

Answer:

The correct answer is:

a)  Unrecorded deposits : bank addition

b)  Interest on cash balance : book addition

c) Bank service charges : book subtraction

d) Debit memos : book subtraction

e) Outstanding Checks : bank subraction

f)  Credit memos : book addition

g) NSF checks : book subtraction

Do unrecorded deposits require an adjusting journal entry?  No

Does interest on cash balance require an adjusting journal entry?  Yes

Do bank service charges require an adjusting journal entry?  Yes

Do debit memos require an adjusting journal entry?  Yes

Do outstanding checks require an adjusting journal entry?  No

Do credit memos require an adjusting journal entry?  Yes

Do NSF checks require an adjusting journal entry?  Yes

8 0
3 years ago
Read 2 more answers
Suppose during 2017 that Federal Express reported the following information (in millions): net sales of $34,450 and net income o
Ronch [10]

Answer:

The asset turnover is 1.44 and return on assets is 0.37%

Explanation:

Average Total assets    

Assets in the beginning $24,590  

Assets at the end          $23,300  

Average assets          $23945

Sales                   $34,450  

Divide: Average assets        $23945  

Assets turnover ratio  1.44

Net Income                   $89

Divide: Average assets          $23945  

Return on assets           0.37%

Therefore, The asset turnover is 1.44 and return on assets is 0.37%

3 0
3 years ago
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses
Flauer [41]

Answer:

Required 1

<u>Part a</u>

<em>Total Product cost = Variable manufacturing costs + Fixed manufacturing costs</em>

where,

Variable manufacturing costs = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50

therefore,

Total Product cost = $147.50 + $32.50 = $180.00

<u>Part b</u>

<em>Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs</em>

where,

variable non- manufacturing costs = $15,000 + $5,500 = $20,500

fixed non-manufacturing costs = $24,000 + $28,000 = $52,000

therefore,

Total period cost = $20,500 + $52,000 = $72,500

Required 2

<u>Part a</u>

<em>total direct manufacturing cost = Direct Materials + Direct Labor + Direct (Variable) Manufacturing Overheads</em>

therefore,

total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

<u>Part b</u>

<em>total indirect manufacturing cost = fixed manufacturing costs</em>

therefore

total indirect manufacturing cost = $32,500

Required 3

<u>Part a</u>

<em>total manufacturing cost = variable manufacturing cost + fixed manufacturing costs</em>

therefore,

total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000

<u>Part b</u>

<em>total non-manufacturing cost = variable non-manufacturing cost + fixed non-manufacturing cost</em>

therefore,

total non-manufacturing cost = $20,500 + $52,000 = $72,500

<u>Part c</u>

<em>total conversion cost = direct labor cost + manufacturing overheads</em>

therefore,

total conversion cost = $42,500 + $21,000 + $32,500 = $96,000

<em>prime cost = direct material + direct labor</em>

therefore,

prime cost = $84,000 + $42,500 = $126,500

Required 4

<u>Part a</u>

<em>total variable manufacturing cost = direct materials + direct labor + variable manufacturing costs</em>

therefore,

total variable manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

<u>Part b</u>

<em>total fixed cost = fixed manufacturing costs + fixed non-manufacturing costs</em>

therefore,

total fixed cost = $32,500 + $52,000 = $84,500

<u>Part c</u>

<em>variable cost per unit produced and sold = variable manufacturing cost + variable non-manufacturing</em>

therefore,

variable cost per unit produced and sold = $147.50 + ($20,500 ÷ 1,000) = $168.00

Required 5

<em>incremental manufacturing costs =  variable manufacturing costs</em>

therefore,

incremental manufacturing cost = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

8 0
3 years ago
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