Thanks you Chapter 25 HW Help Save & Exit Submit Check my work Required informat

Question

Thanks you

Chapter 25 HW Help Save & Exit Submit Check my work Required information Problem 25-2A Analysis and computation of payback period, Part 1 of 4 accounting rate of return, and net present value LO P1, P2, P3 The following information applies to the questions displayed below Most Company has an opportunity to invest in one of two new projects. Project Y requires a $335,000 investment for new 5 points machinery with a four-year life and no salvage value. Project Z requires a $335,000 investment for new machinery with a eBook straight-line depreciation, and cash flows occur evenly throughout each year (PV of S1. EV of S1. PVA of $t and EVAofsi Print ) (Use appropriate factor(s) from the tables provided.) Sales Expenses Project Y Project z $365,080 $292,800 Direct materials Direct labor Overhead including depreciation Selling and administrative expenses 51,180 36, 500 73,00043,800 131,480 131,400 26,800 281,500 237,700 54,300 26,000 Total expenses Pretax income Income taxes (40%) Net income 83,500 3,48 $ $8,10032,588 1 2 3 4 of 4! Next > Graw 11/28/2017

Explanation / Answer

Solution:-

1. Compute each project's annual expected net cash flow.

2. Determine each project's payback period:-

3. Compute each project's accounting rate of return:-

Note :- Discount rate is missing in question 4.

Please Rate or comment if you have any doubt regarding this solution.

Project Y Project Z Net income 50,100 32,580 + Dep. exp 83,750 111,666.67 Net cash flow 133,850 144,246.67

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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