Solution a:
Computation of annual income - Commuter service | |
Particulars | Amount |
Sales Revenue (5*10*30*6*$12) | $108,000 |
Cost: | |
Gasoline | $15,800 |
Maintenance | $3,200 |
Repairs | $3,700 |
Insurance | $4,400 |
Advertising | $2,800 |
Payroll expense | $47,400 |
Depreciation ($76,136/3) | $25,379 |
Net Annual Income | $5,321 |
Computation of Cash Flows - Commuter service | |
Particulars | Amount |
Net Annual Income | $5,321 |
Add: Depreciation | $25,379 |
Annual cash flows | $30,700 |
Solution b:
Cash payback period = Initial investment / Annual cash inflows = $76,136 / $30,700 = 2.48 years
Annual rate of return = Average annual income / Average investment
Average investment = (Cost + Salvage value) / 2 = $76,136/2 = $38,068
Annual rate of return = $5,321 / $38,068 = 13.98%
Solution c:
Computation of NPV - Commuter service | ||||
Particulars | Amount | Period | PV Factor | Present Value |
Cash Outflows: | ||||
Cost of Investment | $76,136.00 | 0 | 1 | $76,136 |
Present Value of Cash Outflows (A) | $76,136 | |||
Cash Inflows: | ||||
Annual cash inflows | $30,700.00 | 1-3 | 2.28323 | $70,095 |
Present Value of Cash Inflows (B) | $70,095 | |||
Net Present Value (B-A) | -$6,041 |
pls show work! thank you Lon Timur is an accounting major at a midwestern state university...
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...
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...
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...
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...
--/30 Question 5 View Policies Current Attempt in Progress 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...
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...
Vilas Company is considering a capital investment of $190,700 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $11,000 and $49,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment. Click here to view...