Reference no: EM131829249
Problem - Elite Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $300,000 cost with an expected four-year life and a $20,000 salvage value. All sales are for cash, and all costs are out of pocket except for depreciation on the new machine.
Additional information includes the following.
Expected annual sales of new product . . . . . . . . . . . . . . . . . . . . . . . . . $1 ,1 50,000
Expected annual costs of new product
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000
Overhead excluding straight-line depreciation on new machine . . . . . . . 21 0,000
Selling and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 1 00,000
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30%
Required
1. Compute straight-line depreciation for each year of this new machine's life. (Round depreciation amounts to the nearest dollar.)
2. Determine expected net income and net cash flow for each year of this machine's life. (Round answers to the nearest dollar.)
3. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. (Round the payback period to two decimals.)
|
How many sets of clubs must be sold for tee times
: Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. How many sets of clubs must be sold for Tee Times, Inc
|
|
Effective rate of interest
: Effective rate of interest. Find the interest rates earned on each of the following. You borrow $680 and promise to pay back $714 at the end of 1 year.
|
|
Evaluating the warehousing facility project
: To finance the investment, Vestor has issued 20 year bonds with a $1,000 par value, 6% coupon rate and at a market price of $950.
|
|
Describe progress through the project life cycle
: A quality response will apply the components of the definition of a project; describe progress through the project life cycle;
|
|
Compute straight-line depreciation for each year
: Compute straight-line depreciation for each year of this new machine's life. (Round depreciation amounts to the nearest dollar.)
|
|
What is the mrts-long-run total cost
: What is the MRTS, long-run total cost, and long-run average cost when the firm produces 70? Show your work.
|
|
Identify at least three objectives for improving the process
: Identify at least three objectives for improving the organization's internal business processes, and show how they relate to the mission.
|
|
What is the total manufacturing costs
: The following information pertains to Job A-200. Direct materials $200 Direct labor $120 1. What is the total manufacturing costs assigned to Job A-200
|
|
Calculate the government spending multiplier
: Calculate the government spending multiplier. If the government increases its spending by 30,000, by how much is GDP going to increase?
|