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Stolb23 [73]
3 years ago
6

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The m

achine will cost $165,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $31,692. Click here to view PV table. What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.) Internal rate of return %
Business
1 answer:
nevsk [136]3 years ago
6 0

Answer:

8%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator.

Cash flow in year zero = $-165,000

Cash flow each year from year one to seven = $31,692

IRR = 8%

To find the IRR 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 IRR button and then press the compute button.

I hope my answer helps you

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Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labo
Rzqust [24]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.

T 498:

Total direct labor-hours 80

First, we need to calculate the estimated manufacturing overhead rate for the period:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (497,000/70,000) + 2.4= $9.5 per direct labor hour.

Now we can allocate the overhead to Job 498:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 9.5*80= $760

3 0
3 years ago
The following information is available regarding the total manufacturing overhead of Molsen Company for a recent four-month peri
Sonja [21]

Answer:

$198,000

Explanation:

Calculation to determine what the total manufacturing overhead estimated for August is

First step is to calculate the Variable element

Variable element=($198,000 - $153,000)/(110,000 - 80,000)

Variable element=$45,000/30,000

Variable element= $1.50

Second step is to calculate the Fixed element

Fixed element=$198,000 - ($1.50 x 110,000)

Fixed element=$198,000-$165,000

Fixed element = $33,000

Now let compute total manufacturing overhead

Total manufacturing overhead=$33,000 + ($1.50 x 110,000)

Total manufacturing overhead=$33,000+$165,000

Total manufacturing overhead= $198,000

Therefore Using the high-low method, compute total manufacturing overhead estimated for August is $198,000

6 0
3 years ago
Which of the following does a firm possess when it can outperform other firms in the same industry or the industry average over
never [62]

Answer: competitive advantage (sustainable)

Explanation: when a company has sustainable competitive advantage, it means it has characteristics, attributes, features, assets etc that has set it apart from its peers, often quite difficult to reproduce setting them in a position for long term market superiority.

8 0
2 years ago
Penningtons Superstore, which specializes in plus-size fashions for women, wanted to see if it should add a line of plus-size ju
Julli [10]

Answer: (C) Collect relevant information    

Explanation:

According to the given question, the Pennington superstore is one of the women fashion store which is specialized in the Plus- size and based on the given statement it basically reflect the relevant information marketing research process.

The process of collecting the relevant information about the specific topic helps in analyzing the necessary data about the company on the basis of the customer requirement.

According to the given question, the process of reflecting about the relevant marketing research information is to collect the relevant data or information on the specific concept.

Therefore, Option (C) is correct answer.    

4 0
2 years ago
Donaldson Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Dou
alisha [4.7K]

Answer and Explanation:

The journal entries are shown below:

On Oct 15

cash Dr $21,000

Service charge expense Dr (3% of $30,000) $9,000

    To Account receivable $30,000

(being the cash is recorded)

On Oct 25

cash Dr $882

Service charge expense Dr (2% of $900) $18

    To Sales $900

(being the cash is recorded)

These two entries should be recorded

8 0
2 years ago
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