Which of the statements is true of hannibal inc

Assignment Help Managerial Accounting
Reference no: EM132529142

Question 1: Hannibal Inc., a local butcher, is considering replacing its current refrigerator used for storing meats with a larger one. The estimated cost of the new refrigerator will be $30,000. Using a discount rate of 15%, the company calculates a net present value for the new refrigerator of $6,000. Based on this information, which of the following statements is true?

Option A.) If the actual cost of the new refrigerator ends up being less than $30,000, the company should not make the investment

Option B.) If the actual cost of the new refrigerator ends up being less than $36,000, the net present value will become negative

Option C.) If the actual cost of the new refrigerator ends up being greater than $36,000, the net present value will become negative.

Option D.) If the actual cost of the new refrigerator ends up being $30,000, the actual rate of return is equal to 15%

Reference no: EM132529142

Questions Cloud

Where would you turn to find resources to build the policy : If you were asked by your employer to develop a new Information Security Policy, where would you turn to find resources to build this policy? List the two most.
Components of swot analysis : What information or detail is important to add to a SWOT analysis in general? How can a complete SWOT help a company succeed?
Calculate the probability in a given year that area : A certain area of eastern United States is, on average, hit by 6 hurricanes a year.
Function to find the median of the given data : A program in R language for user defined function to find the median of the given data. Take appropriate data of your choice.
Which of the statements is true of hannibal inc : The company calculates a net present value for the new refrigerator of $6,000. Based on this information, which of the following statements is true?
Determining the number of students height : a. The height of the students in a certain class is following normal distribution with mean Height as 165 cm and standard deviation of 25 cm. There are 60 stude
Simulating interaction with the shop : Demonstrate your knowledge of inheritance, polymorphism, method overriding, abstract classes, etc. You need to write classes, add methods and variables
Fit a linear regression model to the data : a. Fit a linear regression model to the data by OLS and interpret the results.
Determine what is the materials quantity variance for month : What is the materials quantity variance for the month? The data pertain to operations concerning the product for the last month.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd