Solution a:
Computation of annual income - Commuter service | |
Particulars | Amount |
Sales Revenue (5*10*30*6*$11.95) | $107,550 |
Cost: | |
Gasoline | $16,000 |
Maintenance | $3,300 |
Repairs | $4,010 |
Insurance | $4,210 |
Advertising | $2,510 |
Payroll expense | $47,990 |
Depreciation ($75,200/3) | $25,067 |
Net Annual Income | $4,463 |
Computation of Cash Flows - Commuter service | |
Particulars | Amount |
Net Annual Income | $4,463 |
Add: Depreciation | $25,067 |
Annual cash flows | $29,530 |
Solution b:
Cash payback period = Initial investment / Annual cash inflows = $75,200 / $29,530 = 2.55 years
Annual rate of return = Average annual income / Average investment
Average investment = (Cost + Salvage value) / 2 = $75,200/2 = $37,600
Annual rate of return = $4,463 / $37,600 = 11.87%
Solution c:
Computation of NPV - Commuter service | ||||
Particulars | Amount | Period | PV Factor | Present Value |
Cash Outflows: | ||||
Cost of Investment | $75,200.00 | 0 | 1 | $75,200 |
Present Value of Cash Outflows (A) | $75,200 | |||
Cash Inflows: | ||||
Annual cash inflows | $29,530.00 | 1-3 | 2.28323 | $67,424 |
Present Value of Cash Inflows (B) | $67,424 | |||
Net Present Value (B-A) | -$7,776 |
--/30 Question 5 View Policies Current Attempt in Progress Lon Timur is an accounting major at...
Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has...
pls show work! thank you
Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown...
Lon Timur is an accounting major at a midwestern state
university located approximately 60 miles from a major city. Many
of the students attending the university are from the metropolitan
area and visit their homes regularly on the weekends. Lon, an
entrepreneur at heart, realizes that few good commuting
alternatives are available for students doing weekend travel. He
believes that a weekend commuting service could be organized and
run profitably from several suburban and downtown shopping mall
locations. Lon has...
HELP PLS WORK INCLUDED
Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping...
m/courses/35333/assignments/3691185?module_item_id=11817967 M Pau Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall...
Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. Lon has...
'LUS MANGERIAL ACCOUNTING ACCT 111) Weygandt, Managerial Accounting, de CALCULATOR MESSAGE MY INSTRUCTO R EN VER B ACK NEXT Problem 12-2A a-c (Video) Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel....
Assignment Gradebook WANAGERIAL AC ORION Downloadable eTextbook CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION (BAC Problem 12-2A a-c (Video) Lon Timur is an accounting major at a midwestern state university located approximately 60 miles from a major city. Man of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. Lon, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that...
John Patrus is an accounting major at an eastern university located approximately 60 miles from a major city. Many of the students attending the university are from the metropolitan area and visit their homes regularly on the weekends. John, an entrepreneur at heart, realizes that few good commuting alternatives are available for students doing weekend travel. He believes that a weekend commuting service could be organized and run profitably from several suburban and downtown shopping mall locations. John has gathered...
Question 1 --/1 View Policies Current Attempt in Progress U3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $168,000 $183,750 $202,000 Annual net income: Year 1 14,700 18,900 28,350 14,700 17,850 24,150 ~ 14,700 16,800 22,050 14,700 12,600 13,650 14,700 9,450 12,600 Total $73,500 $75,600 $100,800 Depreciation is computed by the straight-line method with no...