EJERCICIO #11-Capital Investments An investment of $185,575 is expected yields o

Question

EJERCICIO #11-Capital Investments An investment of $185,575 is expected yields of S65,000 per year for each of the next 4 years. Use the tables provided below to identify your response. Below is a table for the present value of S1 at compound interest. Year 6% 0.943 0.890 0.840 0.792 0.747 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 15% 0.870 0.756 0.658 0.572 0.497 4 Below is a table for the present value of an annuity of S1 at compound interest. 6% 0.943 1.833 2.673 3.465 4.212 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 15% 0.870 1.626 2.283 2.855 3.353 Year 4 Instructions: Determine the investment's internal rate of return

Explanation / Answer

11 PV factor for Internal rate of return = Investment cost/Annual cash flows = 185575/65000= 2.855 The PV factor 2.855 can be traced in the present value of an annuity of $1 table for 4 years at 15% Internal rate of return = 15% 12 Activity pool Activity base Budgeted amount Activity rate Setups 24000 60000 2.5 Inspection 24000 120000 5 Assembly 28000 280000 10 a Activity pool Activity incurred Activity rate Overhead allocated Setups 8000 2.5 20000 Inspection 9000 5 45000 Assembly 16000 10 160000 Total 225000 Overhead per unit billed to small lamps = 225000/3000= $75 b Activity pool Activity incurred Activity rate Overhead allocated Setups 16000 2.5 40000 Inspection 15000 5 75000 Assembly 12000 10 120000 Total 235000 Factory overhead billed to desk lamps = $235000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.