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McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $790 per set and have a variable cost of $390 per set. The company has spent $149,000 for a marketing study that determined the company will sell 53,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,400 sets of its high-priced clubs. The high-priced clubs sell at $1,090 and have variable costs of $690. The company will also increase sales of its cheap clubs by 10,900 sets. The cheap clubs sell for $430 and have variable costs of $225 per set. The fixed costs each year will be $9,090,000. The company has also spent $1,100,000 on research and development for the new clubs. The plant and equipment required will cost $28,630,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,290,000 that will be returned at the end of the project. The tax rate is 34 percent, and the cost of capital is 10 percent. Calculate the payback period. (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) Payback period years Calculate the NPV. (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) NPV $ Calculate the IRR. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR
Journalize the entries to record the following selected bond investment transactions for Southwest Bank: Purchased $400,000 of Daytona Beach 5% bonds at 100 plus accrued interest of $4,500. Received the first semi annual interest.
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Which of the following is the first step in the normal flow of accounting data from the journal to the ledger?
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What is the accumulated sum of each of the following streams of payments?
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Discuss the differences in merger practices between U.S. companies and companies in other countries. What changes are occurring in international merger activity, particularly in Western Europe and Japan?
Assume that you contribute $200 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $400 per month for another 25 years. Given a 5 percent interest rate, what is the value of your retirement plan after 40 ye..
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