Homework Answers
Based on the given data, pls find below workings on the Projections and the calculation of NPV, IRR and Payback;
Since NPV is negative, the IRR cannot be worked out and this Project is not at all feasbile with this structure of Cash flows;
Add Answer to:
calculate
A. IRR
B. MIRR
Scenarios:- Scenario Name Worst Probability of Scenario 25% Inputs: - Equipment...
b. 20. In 2018, Loco Company's annual variable expenses were $30,000. Total operating income in 2018...
b. 20. In 2018, Loco Company's annual variable expenses were $30,000. Total operating income in 2018 was $100,000 and 10,000 units were sold. The contribution margin per unit was $25.00. The firm's fixed expenses were: $380,000 $250,000 c. $350,000 $150,000 21. The operating leverage factor for a firm was 3.0. If revenue is expected to increase 30%, operating income should increase: 10% 45% 300% 90% 22. Gardner Furniture Co, produces two kinds of chairs: an oak chair and an elm...
Liberty Services is now at the end of the final year of a project. The equipment...
Liberty Services is now at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm...
Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given...
Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given the information below, answer each of the questions asked. You are given the following information (2017 Annual): Price per Unit $25.00 Advertising $15,000 Packaging per unit $ 5.00 Direct Labor per unit $ 8.00 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment Rent $50,000 Total Units Sold 10,000 Your firm's Total Assets are $400,000 with total equity of $75,000 To answer the...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing costs Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $ 11.00 REQUIRED: Calculate the unit cost and prepare a traditional 6.00 $ 3.00 120,000 Selling and administrative expenses Variable per unit sold Fixed per year $ 4.00 70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in...
1. The following data is related to sales and production of the Tarkio Corporation for last...
1. The following data is related to sales and production of the Tarkio Corporation for last year. Selling price per unit $60.00 Variable manufacturing cost per unit $25.00 Variable selling and administrative expense per unit $6.00 Fixed manufacturing overhead (in total) $50,000 Fixed selling and administrative expenses (in total) $8,000 Units produced during year 10,000 Units sold during year 8,000 Units in beginning inventory 0 Units in ending inventory 2,000 a. How much is Tarkio’s Gross Margin for last year?...
Belmain Co. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of al...
Belmain Co. expects to maintain the same inventories at the end of 2016 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Costs Estimated Variable Cost (per unit...
Poulsen Industries is analyzing an average-risk project, and the following data have been developed. Unit sales...
Poulsen Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. Under the new tax law, the equipment for the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t= 0. At the end of the project's life, the...
QUESTION 22 5 points A B 1 Inputs 2 Units Sales Price 25 3 Annual Fixed...
QUESTION 22 5 points A B 1 Inputs 2 Units Sales Price 25 3 Annual Fixed Cost 52000 4 Unit Variable Cost 9 5 6 Quantity Made and Sold 7 8 Calculations and Outputs 9 Annual Revenue 10 Annual Variable Cost 11 Annual Fixed Cost 12 Annual Total Cost 13 Annual Profit (Loss) Reference Break Even Analysis. Excel To calculate the break-even quantity in cell 36 the correct formula is A-B3/B4-B2) OB A3/A2-A4) C.-86/85-87) D.-03/02-04) E-03/02-14
Please first analyze cash flows for Project L. Then calculate NPV and IRR, and make your...
Please first analyze cash flows for Project L. Then calculate NPV and IRR, and make your capital budgeting decision. To study the health-food market, Allied has done a market research in 2019. This market research costed Allied $10k. The research confirmed Allied's previous belief that the health-food industry has a huge potential and will be a highly profitable industry. Therefore, Allied is considering a new expansion project. Project L, which is a new health-food product that Allied is considering introducing...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: $25.00 Selling price per unit Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 $276,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
b. 20. In 2018, Loco Company's annual variable expenses were $30,000. Total operating income in 2018 was $100,000 and 10,000 units were sold. The contribution margin per unit was $25.00. The firm's fixed expenses were: $380,000 $250,000 c. $350,000 $150,000 21. The operating leverage factor for a firm was 3.0. If revenue is expected to increase 30%, operating income should increase: 10% 45% 300% 90% 22. Gardner Furniture Co, produces two kinds of chairs: an oak chair and an elm...
Liberty Services is now at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm...
Exercise 3 (25 points) Marketing Scenario for a retailer: You sell a particular product line. Given the information below, answer each of the questions asked. You are given the following information (2017 Annual): Price per Unit $25.00 Advertising $15,000 Packaging per unit $ 5.00 Direct Labor per unit $ 8.00 Depreciation $25,000 Royalties per unit $ 2.00 Plant and Equipment Rent $50,000 Total Units Sold 10,000 Your firm's Total Assets are $400,000 with total equity of $75,000 To answer the...
Variable vs. Absorption Costing $ 50.00 No Video for this worksheet Selling price per unit Manufacturing costs Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year $ 11.00 REQUIRED: Calculate the unit cost and prepare a traditional 6.00 $ 3.00 120,000 Selling and administrative expenses Variable per unit sold Fixed per year $ 4.00 70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Units in...
Poulsen Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. Under the new tax law, the equipment for the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t= 0. At the end of the project's life, the...
QUESTION 22 5 points A B 1 Inputs 2 Units Sales Price 25 3 Annual Fixed Cost 52000 4 Unit Variable Cost 9 5 6 Quantity Made and Sold 7 8 Calculations and Outputs 9 Annual Revenue 10 Annual Variable Cost 11 Annual Fixed Cost 12 Annual Total Cost 13 Annual Profit (Loss) Reference Break Even Analysis. Excel To calculate the break-even quantity in cell 36 the correct formula is A-B3/B4-B2) OB A3/A2-A4) C.-86/85-87) D.-03/02-04) E-03/02-14
Please first analyze cash flows for Project L. Then calculate NPV and IRR, and make your capital budgeting decision. To study the health-food market, Allied has done a market research in 2019. This market research costed Allied $10k. The research confirmed Allied's previous belief that the health-food industry has a huge potential and will be a highly profitable industry. Therefore, Allied is considering a new expansion project. Project L, which is a new health-food product that Allied is considering introducing...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: $25.00 Selling price per unit Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 $276,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
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