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!
Williams Corp. makes chrome wheels that are sold through mail order and auto supply stores nationally. They are considering the construction of a new manufacturing plant in South Dakota to increase their capacity by 25%. This new capacity will be needed to meet the demand from a large national auto parts chain.
The plant will be able to manufacture 20,000 sets of chrome wheels a year when at full capacity. They will sell the wheels for $120 a set. The COGS (excluding depreciation) is projected to be 60% of sales or $72 per set. They expect that fixed operating expenses (all of which are incremental new expenses) will be $90,000 a year. The land will cost $200,000 today and can not be depreciated. The plant and equipment will cost $2,300,000 today and will be depreciated for tax purposes on a straight line basis (10% per year) to a value of zero over 10 years.
They expect to be able to sell 10,000 sets in year 1 and they expect sales to grow by 4% per year. At the end of ten years they will close the plant and expect to be able to sell it and the land at that time for $1,200,000 before taxes. The project is expected to require an initial investment of $180,000 in Accounts Receivable & Inventory less Accounts Payable and Accrued Expenses or Net Operating Working Capital (NOWC). In subsequent years the year end investment in NOWC is expected to be 15% of next yearAc€?cs sales.
The opportunity cost of capital for Williams Corp. is 10.2% and their marginal income tax rate is 35%. Calculate the NPV and IRR of the project. Should Williams invest in the new plant?
select a region approved by your instructor and choose a trading bloc nafta eu asean etc. within that region.write two
committing a fraud because the employee feels that it will be easy to do is indicative of which part of the fraud
abc company employs a periodic inventory system and sells its inventory to customers for 25 per unit. abc company had
the following items were taken from the post adjusted trial balance of flip company. all balances are normal. mortgage
fogelberg corporation is a regional company which is an sec registrant. the corporations securities are thinly traded
(a) Determine corrected net incomes for 2009, 2010, and 2011. (b) Give the entry to bring the books of the company up to date in 2012, assuming that the books have been closed for 2011.
xavier and yolanda have original investments of 50000 and 100000 respectively in a partnership. the articles of
haas company prepares monthly cash budgets. relevant data from operating budgets for 2011 arejanuary februarysales
What conflict resolution strategies
What are three controls that would be effective in protecting health care information? For each item, describe the risk in your own terms and how the controls address that risk. Also, discuss how applicable the same risks and controls are to other..
Cost of goods sold for 2010 was $3,600,000. If Butler Company had used FIFO during 2010, its cost of goods sold for 2010 would have been ??
show work and forumulas needed to calculate npvnbspnbspcalculating npvnbspnbspfor the cash flows in the previous
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