Mediocre Inc. has entered into a ve se building over a period of threev uring the first year: Cost of material = P2.5 million %3D Site labor cost = P2.0 million Agreed administrative costs as million. Depreciation of the piant used f Marketing costs for selling apart Depreciation of idle plant and e otal estimated cost of the project = ne percentage of completion (ove
Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…
A: Formula: Present value Annuity : = [ 1 - ( 1 + r )-n ] / R Its the present value of future annual…
Q: UPSILON CO can produce any one of its three product lines with its present equipment set up. Base…
A: Here in this question, we are required to choose between three alternatives. When there is various…
Q: machine costing $250,000 with a five-year life and an estimated $25,000 salvege value is installed…
A: Depreciation can be defined as the actual decrease in the fair value of any asset due to wear and…
Q: On December 31 Y1, the Company ARL develop a Product: Master 3D. The disbursement associate to the…
A: IAS 38 Many business spend vast amount of funds on research and development, with the intention to…
Q: Noah Construction Company is building a large complex for a contract price of $5,000,000. This is a…
A: In the given question of Contract costing following information is given: Contract price…
Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…
A: Net present value is the net value of all the present value of benefits and cost to be incurred or…
Q: A company with a MARR of 15% must install one of two production machines that provide equivalent…
A: The net present worth: The net present worth or the net present value (NPV) is the net of the…
Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'…
A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The…
Q: Destiny Apartments Inc. (DA Inc.) is building a luxury condominium for a contract price of…
A: Solution Gross profit is the profit a business make after substracting all costs that are related to…
Q: International Fabric, Inc. must decide which type of fabric cutting machines it will use - Machine A…
A: we will find the equated annual cost of both machinery A and B and will select the machinery which…
Q: Foster has built a new factory incurring the following costs: Land GH₵1,200,000 Materials…
A: All expense Which are essential for construction of factory should be capitalized like Land ,…
Q: During year 1, Finch Manufacturing Company incurred $15,000,000 of research and development (R&D)…
A: Upstream cost:-These are those cosr which incurred before the production process starts. These are…
Q: Clean-U, Inc., expects to receive $65,000 each year of its newest soap, ÔnGuard. There will be an…
A: In this we have to determine the after tax cash flow and from that we can get NPV.
Q: Close A truck costs $302,000 and is expected to be driven 115,000 miles during its five - year life.…
A: Depreciation under units - of - production method = Depreciation per mile × Actual activity…
Q: Vernon Corporation incurs the following annual fixed costs. Item Cost $ 52,000 120,000 85,000 9,000…
A: Given, Depreciation = $52,000 Officer's salaries = $120,000 Long-term lease = $85,000 Property…
Q: Franklin Corporation incurs the following annual fixed costs: Item Depreciation Officers' salaries…
A: Fixed cost per units can be calculated by dividing total fixed cost with total units.
Q: A company bought land one year prior to start-up for 100,000$. Total capital investment spent at the…
A: Price is the amount that is paid to buy any product or service. In another word, the price is the…
Q: Philip Construction Company started a project with a contract price of P80 million. The cost…
A: Under construction contracts, there are various methods of recognising costs and revenue during the…
Q: Consultant Inc. is a firm of consulting engineers, newly established to advise on a large project…
A: Here given the details of the Consultancy Inc, consulting engineering company to taken care about…
Q: a state of the art prodaction equipment that will Cost 2, 00,000 pesos. The amount of Shipping is G9…
A: Solution Given Purchase price 2000000 Shipping charge 60000 Installation cost…
Q: You are considering two types of machines fora manufacturing process.◼◼ Machine A has a first cost…
A: The estimation of the profitability of the alternatives to select the best alternative by computing…
Q: Romex Corp sales of its product which was estimated at 75,000 pieces annually with a rate of pu. Its…
A: Net income of an entity can be calculated by subtracting sales revenue with cost of goods sold,…
Q: The following data are given for Encino Aluminium Company: Initial cost of proposed equipment…
A: given information cash outflow = 75,000 estimated annual profit = 18,000 time period = 7 years
Q: The cost of a machine is 9400 RO with a residual value of 400 RO. The estimated units machine will…
A: Depreciation (units of production) = (Original cost - Residual value) x (Units produced / Total…
Q: please answer accordingly
A: Given Information Lathe A LatheB First Cost 40,000 56,000 Salvage Value 5,000 7,000…
Q: Stelle Technology has a contract to build a network for a customer for a total sales price of €10…
A: Under the percentage of the completion method, the expenses & revenues of long term contracts is…
Q: . Ataxanddutyfreeimportationofa30-horsepowersandmillforpaint manufacturing costs P360,000, CIF…
A: Depreciation is the loss in the value of an asset over time due to some factors. For currencies, if…
Q: Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the…
A: GIVEN Parks Inc. had recently completed construction of a new manufacturing facility. Prior to the…
Q: Equipment costing P1M is expected to produce 10,000 pieces of pipes during its econpmic life before…
A: Cost can be defined as the price or amount that needs to be paid to acquire or obtain something.…
Q: A mixing plant having a capacity of 50 cu. m. every hour costs P2,500,000. It is estimated to…
A: Answer - Given, Capacity of mixing plant = 50 cu.m./h Initial cost of Plant = P 2,500,000 Total…
Q: A tunnel to transport water initially cost $1,000,000 and has expected maintenance costs that will…
A: Given: Initial cost = $1000000 Maintenance cycle = 6 years MARR = 5% per year Maintenance cost: Year…
Q: The BLE company is considering constructing a plant to manufacture a propose new products. The land…
A: Building costs = P30,000,000 Land costs = P15,000,000. Equipment costs =P12,500,000 Working capital…
Q: Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage…
A: Payback period : Payback period is calculated to determine that how much time it will take to…
Q: [The following information applies to the questions displayed below.] Cardinal Company is…
A:
Q: Determine the total depreciation during the year.Determine the depreciation cost chargeable to each…
A: Given information is: An asphalt and aggregate mixing plant having a capacity of 50 cu.m every hour…
Q: Agritech constructed an warehouse with the capacity storage of 25,000 MT of products at the cost of…
A: Depreciation is an method used to record the assets value which was over the period of time gone…
Q: Munoz Corporation incurs the following annual fixed costs: Item Cost Depreciation Officers' salaries…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The Market Company won a contract to build a shopping center at a price of $300 million. The…
A: In the context of the given question, we are required to compute the revenue to be recognized in…
Q: Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage…
A: Net present value : It is the discounted value of future cash inflow. It is determined by…
Q: PQR Ltd. is considering an equipment of $1,680,000, has a life of six year, and depreciation is…
A: When there is a worst case, The sale price of the unit will decrease and the cost of the unit will…
Q: Stuart Corporation incurs the following annual fixed costs. Item Depreciation. Officers' salaries.…
A: Fixed Cost :— It is the cost that does not depends on units and does not changes with change in…
Q: Chan Builders Inc entered into a contract with George Company to construct a production plant. At…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: Consider a four-year project with the following information: Initial fixed asset investment =…
A: The question gives the following information:
Q: Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage…
A: Accounting rate of return can be calculated as: = Net Income / Average Investment It does not take…
Q: Sales of a product was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg.…
A: Depreciation as per Straight Line Method = Cost Of Equipment - Salvage value of EquipmentLife of…
Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…
A: Answer 1) Calculation of Present value of cash flows from Machine A Present value of cash flows =…
Q: The cost characteristics of a CO testing machine that was purchased 5 years ago for $100,000 are…
A:
Q: Courage Company incurred the following costs in the current year: R and D equipment with useful…
A: The costs involved during the process of creating a new firm are known as startup costs. A company…
Kindly answer the no. 4 question. Thank you
Step by step
Solved in 2 steps
- The tabular information of a certain engineering project is shown below: REVENUE AND COST ESTIMATES Capital investment Annual revenue Annual operating cost Salvage value Study period BD 60,000 BD 25,000 BD 9,000 BD 20,000 MARR 20% Evaluate the project using Present Worth (PW) methodRLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: Annual Cost Method[The following information applies to the questions displayed belad Project Y requires a $321,000 investment for new machinery wityy vifour-year life and no salvage value. The project yield owing annual results. Cash flows occur evenly withit veach year. ( Annual Asounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses Incone 2. Determine Project Y's payback period Project Y Project Y Numerator: Initial investment $ 3. Compute Project Y's accounting rate of return Not present value Payback Period T Denominator: 7 Annual net cash flow Numerator 321,000 $ 180,000 Accounting Rate of Return Denominator Net Cash Flows Present Value of Annuity at a Project Y $ 375,000 80,250 4. Determine Project Y's net present value using 7% as the discount rate. (Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole dollar) S $ 99,750…
- The following is a cost / revenue estimates of a project: Initial investment $50,000 Annual revenue 20,000 Annual operating cost 2,500.. Salvage value@EOY 10,000 Study period 5 years MARR 20% per year Determine whether the project is profitable using the PW method .Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Y $ 355,000 Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and administrative expenses 159,040 57,500 25,000 $ 113,460 Income Required: 1. Compute Project Y's annual net cash flows. Annual amounts Income Cash Flow Sales of new product 355,000 Expenses Materials, labor, and overhead (except depreciation) 159,040 Depreciation-Machinery 57,500 Selling, general, and administrative expenses 25,000 Income $ 113,460 Net cash flow 2$ %24RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: a. Rate of Return Method Rate of Return Method Annual Cost Method NOTE: Show cashflow diagram.
- Project Y requires a $324,000 investment for new machinery with a six-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Annual Anounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation-Machinery Selling, general, and ar strative expenses Income Problem 24-2A (Algo) Part 1 Required: 1. Compute Project Y's annual net cash flows. Annual amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Net cash flow Income $ 370.000 $ 165,760 54,000 26,000 124,240 Project Y $ 370,000 165,760 54,000 26,000 $ 124,240 Cash FlowA company is going to buy a new equipment for manufacturing itsproduct. Four different equipment’s are available; costs, operating and otherexpenses are as follows:Equipment A B C DFirst Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000Power per year Php 1300 Php 1360 Php 2400 Php 2520Labor per year Php 10,600 Php 9320 Php 4200 Php 2700Maintenance/year Php 2800 Php 1900 Php1300 Php 700Taxes & Insurance 2% 2% 2% 2%Life; years 5 5 5 5 Money is worth 10% before taxes to the company. Which equipment shouldbe purchased ? Choose which method is applicable.The directors of Pelta Co are considering a planned investment project costing $25m, payableat the start of the first year of operation. The following information relates to the investmentproject:Year 1 Year 2 Year 3 Year 4Sales volume (units/year) 520,000 624,000 717,000 788,000Selling price ($/unit) 30·00 30·00 30·00 30·00Variable costs ($/unit) 10·00 10·20 10·61 10·93Fixed costs ($/year) 700,000 735,000 779,000 841,000This information needs adjusting to take account of selling price inflation of 4% per year andvariable cost inflation of 3% per year. The fixed costs, which are incremental and related to theinvestment project, are in nominal terms. The year 4 sales volume is expected to continue forthe foreseeable future.Pelta Co pays corporation tax of 30% one year in arrears. The company can claim tax-allowabledepreciation on a 25% reducing balance basis.The views of the directors of Pelta Co are that all investment projects must be evaluated overfour years of operations, with an…
- In an energy systems installation, following financial requirement was identified. Capital cost of equipment and installation - $ 150,000 Recurrent cost of maintenance Replacement of parts Life time of the system Income through energy generation i. iii. -$5,000 per year -$4,000 per year - 12 years - $ 22,000 per year Calculate the payback period of the system. If the scarp value of the equipment is $ 5,000, determine is the net profit expected to be collected for the investment? Explain how this profit is affected by "cost of money" or "interest". No calculations needed.Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to bea- At 10%, find PW for the following Table Warehouse cost equipment cost Installation cost Annual maintenance costs Annual Revenues Salvage Machine life 0 1 2 3 -90,000 b- A project with an IRR = 20%, it has the following NCF (S) X X 4000 (SUS) 50,000 46.000 Find X? 6,500 8,000 45,000 15,000 15 years