Wilma's Winery uses the indirect method to determine net cash provided by operating activities. During 2017, Wilma experienced a

Your firm is thinking about investing $200 comma 000200,000 in the overhaul of a manufacturing cell in a lean environment. Reve

Zepler [3.9K]

Answer:

EAW = -$17,545.71

Explanation:

initial investment = $200,000

cash inflows;

Year 1 = $33,000
Year 2 = $44,000
Year 3 = $55,000
Year 4 = $66,000
Year 5 = $77,000
Year 6 = $88,000
Year 7 = $99,000
Year 8 = $110,000
Year 9 = $132,000

cash outflows:

Year 1 = $20,000
Year 2 = $30,000
Year 3 = $40,000
Year 4 = $50,000
Year 5 = $60,000
Year 6 = $70,000
Year 7 = $80,000
Year 8 = $90,000
Year 9 = $100,000

EAW = equivalent annual worth = equivalent annual benefits - equivalent annual costs

to determine the EAB we must first find the PV of the cash inflows using a financial calculator = $408,348.84

EAB = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($408,348.84 x 10%) / [1 - (1 + 10%)⁻⁹] = $70,905.91

to determine the EAC we must first find the PV of the cash outflows (including initial outlay) using a financial calculator = $509,395

EAC = (PV x r) / [1 - (1 + r)⁻ⁿ] = ($509,395 x 10%) / [1 - (1 + 10%)⁻⁹] = $88,451.62

EAW = $70,905.91 - $88,451.62 = -$17,545.71

5 0

3 years ago

Ted dies with assets consisting only of long-term investments. He leaves $5,000,000 to his children and the remainder to his wif

WITCHER [35]

Answer:

B) $9,500, 000

Explanation:

The tax basis for Ted's estate is $9,500,000, ans since it falls under the current federal estate tax exemption($11,400,000), his wife and children do not have to pay any estate taxes. If Ted's family sells the assets before the six month alternate valuation is effective, then their tax basis will be the same as Ted's estate ($9,500,000).

3 0

3 years ago

To copy text in a word document to an Excel spreadsheet, you should first format the text as a Word table or as text separated b

geniusboy [140]

Answer:

Commas, tabs, semicolon, or spaces.

Explanation:

In Excel, commas, tabs, semicolon, or spaces are known as delimited values, and you can tell excel which option your data has in order to separate it. For example, if you copy and paste text that will be used for column header you can use the "Text to Columns" tool, click "delimited" and next, and then check the box next to which type of separator you are using (commas, tabs, etc). The tool will then separate every item of text with that type of separator into different columns.

5 0

3 years ago

Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o

svp [43]

Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

= $4,000 + 24,000 + 16,000 + 12,800 - 48,000

= $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

= $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

5 0

3 years ago

Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000

rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% = (900,000) Required Return

1,875,000 Economic Value Added

4 0

3 years ago