Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago, 3 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 01 Nov 2017 My Price 10.00

project with labor cost

1. A firm is reviewing a project with labor cost of $8.40 per unit, raw materials cost of $24.65 a unit, and fixed costs of $10,000 a month. Sales are projected at 10,400 units over the 3-month life of the project. What are the total variable costs of the project?

$353,720

$333,720

$176,860

$256,360

$343,720

2.

Thornley Machines is considering a 3-year project with an initial cost of $600,000. The project will not directly produce any sales but will reduce operating costs by $310,000 a year. The equipment is depreciated straight-line to a zero book value over the life of the project. At the end of the project the equipment will be sold for an estimated $66,000. The tax rate is 34 percent. The project will require $14,000 in extra inventory for spare parts and accessories. Should this project be implemented if Thornley's requires a rate of return of 10 percent? Why or why not? Select answer below:

yes; The NPV is $107,161.53

yes; The NPV is $163,813.37

yes; The NPV is $54,760.00

no; The NPV is $121,161.53

yes; The NPV is $47,161.53

3.

 
Fill in the missing numbers in the following income statement: (Do not round intermediate calculations.)
     
  Sales $ 644,900   
  Costs   346,400   
  Depreciation   97,100   
   
  EBIT $  
  Taxes (40%)    
   
  Net income $  
   
 
 
Requirement 2:
What is the OCF? _____________
 
What is the depreciation tax shield? ______________

4.  

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,610,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,320,000 in annual sales, with costs of $1,300,000. The project requires an initial investment in net working capital of $167,000, and the fixed asset will have a market value of $192,000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 6 percent.

Requirement 1:

What are the net cash flows of the project for the following years? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars (e.g., 1,234,567).) List cash flow for each year.
Year Cash Flow
0  
1  
2  
3  
 
Requirement 2:

What is the NPV of the project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)

NPV $ ________________

5.

Automatic Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,170 per unit; variable cost = $390 per unit; fixed costs = $4.90 million; quantity = 80,000 units. Suppose the company believes all of its estimates are accurate only to within A?± 15 percent.

Required:

What values should the company use for the four variables given here when it performs its best-case and worst-case scenario analysis? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars. Round your answers to the nearest whole dollar amount (e.g.,1,234,567).)
Scenario Unit Sales Unit Price Unit Variable Cost Fixed Costs
  Base case 80,000    $ 1,170    $ 390      $ 4,900,000   
  Best case                    
  Worst case                    
 

  
 

Answers

Maurice Tutor
(5)
Status NEW Posted 01 Nov 2017 07:11 PM My Price 10.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------

Not Rated(0)