Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The president's executive jet is not fully utilized. You judge that its use by other officers would increase direct operating costs by only $25,000 a year and would save $100,000 a year in airline bills. On the other hand, you believe that with the increased use the company will need to replace the jet at the end of three years rather than four. A new jet costs $1.15 million and (at its current low rate of use) has a life of Five years. Assume that the company does not pay taxes. All cash flows are forecasted in real terms. The real opportunity cost of capital is 8%.
Question 1: Calculate the equivalent annual cost of a new jet. (Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to 2 decimal places. Enter your answer as a positive value.)
Question 2: Calculate the present value of the additional cost of replacing the jet one year earlier than under its current usage. (Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to 2 decimal places.Enter your answer as a positive value.)
Question 3: Calculate the present value of the savings. (Do not round intermediate calculations. Enter your answer in dollars not in millions. Round your answer to 2 decimal places.)
Question 4: Should you try to persuade the president to allow other officers to use the plane?
You plan to start a program in 5 years. You can invest the money at 6% interest, compounded annually. How much will you have in 5 years?
Reconstruct the reconciliation of net income to cash flows from operating activities (operating cash flows using the indirect method).
Compute the ROI for the division with the new investment. Do you think the divisional manager will approve the investment?
Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank or enter "0".
Would an unexpected increase in sales and production result in under applied or over applied overhead? Explain.
HI5020 Corporate Accounting - What is your firms tax expense in its latest financial statements and Why is the income tax payable not the same as income
Should the investment be undertaken if the required rate of return is 18 percent?
Compute the amount of production costs transferred from Cutting to Stitching, production costs transferred from Stitching to finished goods
What are the segments demanded in establishing a standard cost for direct materials, direct labor, and variable manufacturing overhead?
The machine has an expected life of 9 years and no salvage value. The company anticipates a yearly net income of $60,000 after taxes of 30% to be received unifo
Roland Andersson is the manager of the Ekland Division of Ystad Industries. His one of several managers being considered for position of CEO, as the current CEO is retiring in a year.
Professionalism and ethics in accounting and the history of accounting
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd