Please do not give solution in image format thanku Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $265,000.Project 2 requires an initial investment of $189,000.Annual AmountsSales of new productExpensesMaterials, labor, and overhead (except depreciation)Depreciation MachinerySelling, general, and administrative expensesIncomeRequired A Required BCompute each project's annual net cash flow.(a) Compute each project's annual net cash flow.(b) Compute payback period for each investment.Complete this question by entering your answers in the tabs below.Annual AmountsSales of new productExpensesMaterials, labor, and overhead (except depreciation)Depreciation MachinerySelling, general, and administrative expensesIncomeNet cash flowS$IncomeProject 1152,000 $< Required A78,00033,00021,00020,000Project 1$ 152,000$78,00033,00021,000$ 20,000Cash Flow28,000Project 2$ 132,000Cash Flow20,000 $ 132,000 $ 23,000$(8,000)Required B >45,00031,00033,000$ 23,000Project 2Income45,00031,00033,00023,000$ 23,000 kcesInformation for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $265,000.Project 2 requires an initial investment of $189,000.Annual AnountsSales of new productExpensesMaterials, labor, and overhead (except depreciation)Depreciation-MachinerySelling, general, and administrative expenses.Income(a) Compute each project's annual net cash flow.(b) Compute payback period for each investment.Required AComplete this question by entering your answers in the tabs below.Required BCompute payback period for each investment.Project 1Project 2Numerator:Cost of goods sold1Payback PeriodDenominator:/Annual net cash flowProject 1$ 152,000< Required A78,00033,00021,000$ 20,000=Project 21$ 132,00045,00031,00033,000$ 23,000Required B >Payback period00

Net cash flows :— It is the difference between cash inflows and cash inflows.Payback period :— It…

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $265,000. Project 2 requires an initial investment of $189,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Required A Required B Compute each project's annual net cash flow. (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Net cash flow S $ Income Project 1 152,000 $ < Required A 78,000 33,000 21,000 20,000 Project 1 $ 152,000 $ 78,000 33,000 21,000 $ 20,000 Cash Flow 20,000 $ 28,000 Project 2 $ 132,000 $ (8,000) Required B > 45,000 31,000 33,000 $ 23,000 Income Project 2 Cash Flow 132,000 $ 23,000 45,000 31,000 33,000 23,000 $ 23,000

Information for two alternative projects involving machinery investments follows. Project 1 requires an initial investment of $265,000. Project 2 requires an initial investment of $189,000. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Required A Required B Compute each project's annual net cash flow. (a) Compute each project's annual net cash flow. (b) Compute payback period for each investment. Complete this question by entering your answers in the tabs below. Annual Amounts Sales of new product Expenses Materials, labor, and overhead (except depreciation) Depreciation Machinery Selling, general, and administrative expenses Income Net cash flow S $ Income Project 1 152,000 $ < Required A 78,000 33,000 21,000 20,000 Project 1 $ 152,000 $ 78,000 33,000 21,000 $ 20,000 Cash Flow 20,000 $ 28,000 Project 2 $ 132,000 $ (8,000) Required B > 45,000 31,000 33,000 $ 23,000 Income Project 2 Cash Flow 132,000 $ 23,000 45,000 31,000 33,000 23,000 $ 23,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 17E: Postman Company is considering two independent projects. One project involves a new product line,...

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