Cindy justus is the managing director of the wichita day

Assignment Help Accounting Basics

Reference no: EM13575204

Cindy Justus is the managing director of the Wichita Day Care Center. Wichita is currently set up as a full-time child care facility for children between the ages of 12 months and 6 years. Cindy is trying to determine whether the center should expand its facilities to incorporate a newborn care room for infants between the ages of 6 weeks and 12 months. The necessary space already exists. An investment of $24,830 would be needed, however, to purchase cribs, high chairs, etc. The equipment purchased for the room would have a 5-year useful life with zero salvage value.

The newborn nursery would be staffed to handle 12 infants on a full-time basis. The parents of each infant would be charged $207 weekly, and the facility would operate 52 weeks of the year. Staffing the nursery would require two full-time specialists and five part-time assistants at an annual cost of $102,400. Food, diapers, and other miscellaneous supplies are expected to total $12,100 annually.

Determine annual net income and net cash flow for the new nursery.

Annual Net Income		$
Annual Cash Flow		$

Annual Rate of Return$

Cash Payback Period (2 decimal Places)

Assuming that Wichita can borrow the money needed for expansion at 10%, compute the net present value of the new room. $

Reference no: EM13575204

Questions Cloud

A company uses the weighted average method for inventory : a company uses the weighted average method for inventory costing. during a period a production department had 20000

Bob brownings weekly gross earnings for the present week : bob brownings weekly gross earnings for the present week were 2750. browning has three exemptions. using the wage

What is the conclusion of the test at thenbspalpha 010 : given a sample size of 65 with sample mean 726.2 and sample standard deviation 85.3we perform the following hypothesis

A 6-month put option on smith corps stock has a strike : a 6-month put option on smith corp.s stock has a strike price of 47.50 and sells in the market for 8.90. smiths current

Cindy justus is the managing director of the wichita day : cindy justus is the managing director of the wichita day care center. wichita is currently set up as a full-time child

In 2008 masset sold 3000 units at 500 each variable : in 2008 masset sold 3000 units at 500 each. variable expenses were 350 per unit and fixed expenses were 200000. the

For contreras company sales is 1000000 fixed expenses are : for contreras company sales is 1000000 fixed expenses are 300000 and the contribution margin per unit is 72. what is

Given this you will realize percent price depreciation on : kurts forest products is currently issuing both a 5 year and 10 year bonds at par. the bonds each pay 6.5 percent

Vazquez companys cost of goods sold is 350000 variable and : vazquez companys cost of goods sold is 350000 variable and 200000 fixed. the companys selling and administrative

User Account

All Pages