Reference no: EM132982904
Question -
Q1) The Rosco company is purchasing a new machine that will increase revenue for 8 years. The purchase price of the machine is $245,900 and will require a working capital of $55,000.
This new machine will require a major service in year 3 and year 6 of $37,500.
The increase in revenue will be:
Years 1, Year 2, and Year 3 will have an annual increase in revenue of $98,700.
Year 4 - $118,400, Year 5 - $125,300, Year 6 - $96,100, Year 7 - $82,300 and Year 8 - 74,900.
At the end of year 8, the company will sell the machine for scrap for $25,000.
Calculate the net present value of the new machine using a 15% rate of return.
Q2) Cash Collections for Belcher Motors found that 35% of its sales were cash and the remaining 65% are credit sales.
Of the credit sales, the company collected 55% in the month of sale,
40% collected the month after the sale, and
5% collected the second month after the sale.
May Sales were $100 000, April Sales were $115,000, and June Sales were 136,000.
How much will be collected in the 3rd quarter if July sales are $180,000, August sales are 167,000, and September sales are $152,000, and include a total column for the 3rd quarter total.
|
Determine the days cash on hand
: Determine the days' cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Round all calculations to one decimal place
|
|
Compute the activity rate for each of the activity cost pool
: Compute the activity rate for each of the activity cost pools. Rustiest Company recently implemented an activity-based costing system.
|
|
Strategy and structure of the current programme
: Evaluation study providing a clear review of the support provided by YTH in advancing CYP in order to meet the aims and objectives identified
|
|
What is the quoted yield
: What is the quoted yield of a $10,000 face value T-bill with a market price of $8,000 with 20 days to maturity
|
|
How much will be collected
: How much will be collected in the 3rd quarter if July sales are $180,000, August sales are 167,000, and September sales are $152,000
|
|
Compute the internal rate of return for each of the projects
: Compute the internal rate of return for each of the projects using Excel functions. The company requires a 4% return from its investments.
|
|
What total cost of land should be reported
: A second piece of land with a building was acquired for P5,400,000. What total cost of land should be reported under property, plant and equipment
|
|
Compute the internal rate of return for proposed investment
: Compute the internal rate of return for the proposed investment. OptiLux is considering investing in an automated manufacturing system.
|
|
Do believe are applicable for not-for-profit corporations
: Think about the capital investment methods. Do you believe these are applicable for not-for-profit corporations or for government?
|