Bramblett Recording Studio is considering two investment proposals (1 and 2). Data for the two proposals are presented below: Proposal 1 Proposal 2 Cost of investment $75,000 $100,000 Estimated salvage value 15,000 20,000 Average estimated net income 18,000 13,200 Calculate the return on average investment for both proposals.
Q: Suppose you are a partner in a cosmetics manufacturing company. What is required is as follows: a.…
A: Solution:Explanation of the Cosmetics Manufacturing CompanyAs a partner in a cosmetics manufacturing…
Q: PART 4: A large discount store has approached the owner of Yundt about buying 20,000 snow globes.…
A: To determine whether Yundt should accept the special order from the large discount store for 20,000…
Q: please answer in text form with proper workings and explanation for each and every part and steps…
A: Let's begin the process of preparing the planned income statement for Vernon Cabins for the second…
Q: John Deere is an American manufacturer of agricultural, construction, and forestry machinery. The…
A: The objective of this question is to calculate the internal rate of return (IRR) for the investment…
Q: In what account are the employer's payroll taxes recorded? Payroll Tax…
A: The objective of the question is to identify the account in which an employer's payroll taxes are…
Q: 55
A: The objective of the question is to calculate the adjusted cash balance per books given certain…
Q: Rahul
A: The objective of this question is to perform a horizontal analysis of the comparative income…
Q: Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2024.…
A: The objective of the question is to prepare a lease amortization schedule and appropriate entries…
Q: A project has the following cash flows: Year 0 1 2 3 4 Project Cash Flows -$4,724.00 $2,421.00…
A: Calculate the project's discounted payback period using Excel as follows:Formula sheet: Hence,…
Q: Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of…
A: Step 1:We have to calculate the profit margin of the firm. The formula of profit margin:Profit…
Q: The Plastics Division of Minock Manufacturing currently earns $2.53 million and has divisional…
A: The objective of the question is to calculate the Return on Investment (ROI) for the Plastics…
Q: Ali Amanda, a resdent person for tax purposes, earned an employment income of 15,000 cedis, Business…
A: To calculate Ali Amanda's total assessable income for the year 2021, we need to consider her various…
Q: Analysis of Net Income or Net Loss on the Work Sheet Select which column on a work sheet, Income…
A: Net income.Net income is typically shown as a credit balance in an income statement worksheet. Net…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Approach to solving the question: Detailed explanation:If Gamer Great is the monopoly producer of…
Q: Winners Company expects to manufacture and sell 30,000 athletic uniforms for £80 each in 2024.…
A: Good day! We are asked to compute the Budgeted for Direct Materials Purchases. First step is to…
Q: The system through which management is given financial information for use in conducting the affairs…
A: Step 1: Define Financial information:Financial Information is the information of the affairs of…
Q: On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net…
A: Stockholders' Equity Account 1:1. January 1: - Balance, 60,000 shares: $300,0002. April 2: -…
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: The objective of the question is to determine the maximum overtime rate Portsmouth should be willing…
Q: Which of the following forms of compensation to an active member of the U.S. Armed Forces is likely…
A: The Basic Allowance for Subsistence (BAS) is one of the many types of compensation given to active…
Q: 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your…
A: Detailed Gross Profit Calculation for Each Costing MethodFIFO:• Sales: 1420 units x $85 = $120,700•…
Q: The net income reported on the income statement for the current year was $256,674. Depreciation…
A: Computation of the net cash flows from operating activities:Cash flows from operating activities:…
Q: Procedures within the business that are designed to protect cash and other assets and to keep…
A: The question is asking to identify the term that refers to the procedures within a business that are…
Q: In the statement of activities of a not-for-profit, depreciation expense should a. be included as an…
A: c. be included as an element of support.The term non-operating expenditures refer to the type of…
Q: None
A: To begin, the 3-Year Moving Average technique is a methodology that is often used in the field of…
Q: Which of the following journal entries would be recorded if a business purchased supplies on account…
A: The objective of the question is to identify the correct journal entry to record the payment of an…
Q: The four key behavioral considerations in management accounting and control system design include…
A: Behavioral Considerations in Management Accounting and Control Systems (MACS) Design: A…
Q: 2. Consider three charges in the figure below. Assume that distances between charges d1-d3=4.24 m,…
A: Approach to solving the question: Detailed explanation:Examples: Key references:
Q: The Sheffield Company had the following assets and liabilities on the dates indicated. December 31…
A: Step 1: Owner's equity, ending balances Owner's equity, ending balance = Total Assets - Total…
Q: Question: What amount of money must be invested today in order to grow to $2,000 in 3 years at an…
A: Given information, Target future value (FV) = $2,000Time (t) = 3 yearsAnnual interest rate (r) = 5%…
Q: The records of the Dodge Corporation show the following results for the most recent year: Sales…
A: Step 1: Contribution margin Contribution margin = Sales - Variable expensesContribution margin =…
Q: What amount of money must be invested today in order to grow to $2,000 in 3 years at an interest…
A: Given information, Future value (FV) = $2,000Time (t) = 3 yearsAnnual interest rate (r) = 5% or…
Q: 3. Which of the following is not a computer facility control? (a) Place the data processing center…
A: The objective of these questions is to test the understanding of computer facility controls,…
Q: As part of his cost-reduction efforts, Fletch is interested in reducing labor costs. He asks you to…
A: Before you can begin the process of establishing the direct labor budget for MAN-5 staff, you will…
Q: Pay rate employers are required to pay certain employees covered by state and federal laws; the Fair…
A: The question is asking for the term that describes the pay rate that employers are required to pay…
Q: Department G had 2,040 units 25% completed at the beginning of the period, 12,500 units were…
A: Here is the detailed solution: BEGINNING WIP INVENTORY = 2040 UNITSUNITS STARTED DURING THIS PERIOD…
Q: The four key behavioral considerations in management accounting and control system design include…
A: "Integrating the organization's salary structure is not usually regarded as one of the primary…
Q: Nachembe Co is a recently established company specialising in the manufacture of a range of drugs…
A: (a) Working Capital Cycle = Inventory Period + Receivables Period - Payables PeriodInventory Period…
Q: 10. Accounting firm XYZ provides audit, tax, and general accounting services. It estimates it will…
A: Internal training overhead allocated to Audit service = $ 150,000 × 640/(640+510+350)= $ 150,000 ×…
Q: The board of directors declared cash dividends totaling $223,700 during the current year. The…
A: Step 1:Computation of the amount of cash payments to stockholders during the year:Following…
Q: #3 Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and…
A: The objective of the question is to calculate the Net Present Value (NPV) of the project for…
Q: Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing…
A: Given data:Sales: $440,000Variable manufacturing expenses: $122,000Sales commissions:…
Q: John Deere is an American manufacturer of agricultural, construction, and forestry machinery. The…
A: The objective of this question is to calculate the internal rate of return (IRR) for a new piece of…
Q: What is the cost of goods manufactured if beginning work in process was $30,000, ending work in…
A: To calculate the Cost of Goods Manufactured (COGM), we follow a specific formula that accounts for…
Q: Please do not give solution in image format and give answers proper steps by steps and give…
A: Given data : 40 percent of the sales on account are collected in the month of sale. 40 percent in…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Referencehttps://www.investopedia.com/articles/personal-finance/082515/how-do-you-calculate-penaltie…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Special order sales price per unit $ 18.00 Less: Relevant cost 15.00 Income…
Q: Spelman Corporation has Sales of $36,800, Depreciation Expense of $3,000, Interest Expense of…
A: The objective of the question is to calculate the profit margin of Spelman Corporation. The profit…
Q: Spartans Inc. has three operating divisions: Alpha, Beta, and Gamma. Financial information for each…
A: (a) To find the Invested Assets for the Alpha division, we'll use the ROI formula and rearrange it…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Let's assume the net income for the year is $50,000. We will use this value to calculate the net…
Q: Provide full journal entry
A: FIT-FOR-LIFE FOODSIncome StatementFor Year Ended December 31Sales:Sales Revenue…
Step by step
Solved in 2 steps
- Company A has provided figures for two investment projects, only one of which may be chosen. These are the calculations based on the figures: Payback Period The Accounting Rate of Return / Return on Capital Employed Net Present Value Project A 2 years 4 months 27.08% £63,705 Project B 2 years 7 months 39.47% £74.971 Analyse and provide recommendations as to what project needs to be chosen based on the calculations above.A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 11,226 (10,000) Project B $ 10,568 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Project A Project B Project C Present value of net cash flows Initial investment Net present value $ $ $Lobers, Inc., has two investment proposals, which have the following characteristics: PROJECT A PROJECT B PROFIT AFTER TAXES NET CASH FLOW PROFIT AFTER TAXES NET CASH FLOW PERIOD COST COST $9,000 $12,000 1 $1,000 $5,000 $1,000 $5,000 1,000 4,000 1,000 5,000 3 1,000 3,000 4,000 8,000 For each project, compute its payback period, its net present value, and its profitability index using a discount rate of 15 percent.
- A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 8,328 (10,000) Project B $ 10,809 (10,000) Project C $ 10,685 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Project A Project B Project C Present value of net cash flows Initial investment Net present valueLewis Services is evaluating six investment opportunities (projects). The following table reflects each project’s net present value NPV and the respective initial investments required. All of these projects are independent. Project NPV Investment I 2,500 2,500 II 4,000 20,000 III 7,500 30,000 IV 8,000 40,000 V 2,000 10,000 VI 2,500 5,000 Lewis has an investment constraint of P50,000. Which combination of projects would represent the optimal investment that should be recommended to Lewis Services’ management? I, II, III, V, and VI I, II, III, IV, V, and VI I, III, and VI I, III, V, and VILewis Services is evaluating six investment opportunities (projects). The following table reflects each project’s net present value NPV and the respective initial investments required. All of these projects are independent. Project NPV Investment I 2,500 2,500 II 4,000 20,000 III 7,500 30,000 IV 8,000 40,000 V 2,000 10,000 VI 2,500 5,000 Lewis has an investment constraint of P50,000. Which combination of projects would represent the optimal investment that should be recommended to Lewis Services’ management? Choices a. I, II, III, IV, V, and VI b. I, III, and VI c. I, III, V, and VI d. I, II, III, V, and VI
- Investment Criteria. Consider two mutually exclusive projects, A and B, whose costs and cash flows are shown in the following table: Year Project A Project B 1 $(15,000) $(22,840) 2 9,000 8,000 3 8,000 8,000 4 2,500 8,000 5 3,000 8,000 Calculate the cross over rate.Lewis Services is evaluating six investment opportunities (projects). The following table reflects each project's net present value NPV and the respective initial investments required. All of these projects are independent. Project NPV Investment 2,500 2,500 II 4,000 20,000 II 7,500 30,000 IV 8,000 40,000 2,000 10,000 VI 2,500 5,000 Lewis has an investment constraint of P50,000. Which combination of projects would represent the optimal investment that should be recommended to Lewis Services' management? O I. II, and VI O I, II, V, and VI O , II, II, IV, V, and VI OI, II, III, V, and VIABC Company has calculated the net present value of two investment opportunities but must decide which option to pursue: Project X: Present value of cash flows = $117,000 Investment = $100,000 Net present value = $17,000 Project Z: Present value of cash flows = $138,000 Investment = $120,000 Net present value = $18,000 Complete the following: Present value ratio of Project X = Present value ratio of Project Z = Decision = Invest in (Project X/Project Z)
- Lewis Services is evaluating six investment opportunities (projects). The following table reflects each project's net present value NPV and the respective initial investments required. All of these projects are independent. Project NPV Investment 2,500 2,500 || 4,000 20,000 II 7,500 30,000 IV 8,000 40,000 V 2,000 10,000 VI 2,500 5,000 Lewis has an investment constraint of P50,000. Which combination of projects would represent the optimal investment that should be recommended to Lewis Services' management? O I, II, III, IV, V, and VI O I, III, V, and VI O I, II, III, V, and VI O I, III, and VICullumber Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 13.73 percent. Year 0 1 2 3 4 5 Project A - $287,839 109,300 109,300 109,300 109,300 109,300 Project B - $401,058 The NPV of project A is $ There is The IRR of Project A is a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.) 138,190 Cullumber should choose 162,830 b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.) Cullumber should choose 179,500 118,800 119,800 c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? and project B is $ % and Project B is will be accepted. ◆ based on NPV. based on IRR. between the NPV and IRR decisions. d. If you are the decision maker for the firm, which project or projects will be…There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows: Use the information from the previous exercise to calculate the internal rate of return on both projects and make a recommendation on which one to accept. For further instructions on internal rate of return in Excel, see Appendix C.
