BUS-FP4061 – Managerial Accounting Rules Evaluation 9: Making the Proper Resolution Worksheet Issues 1-Four Full issues 1-Four primarily based on the…
Hello! Are you able to assist me decide tips on how to calculate the annual internet money flows for Challenge A? I’ve connected the doc for reference. Thanks!
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BUS-FP4061 – Managerial Accounting Rules
Evaluation 9: Making the Proper Resolution Worksheet
Issues 1–Four
Full issues 1–Four primarily based on the next situation.
Megacorp must determine which of two new tasks to spend money on.
Challenge A is an funding in new equipment that can price $750,000
and has a four-year life with no salvage worth.
Challenge B is an funding in new equipment that can price $750,000
and has a three-year life with no salvage worth.
Utilizing straight-line depreciation, Megacorp predicts that the 2 tasks
will yield the next annual outcomes, with money flows occurring evenly
all year long.
Predicted Annual Outcomes
Challenge A ($)
Gross sales
700,000
Bills:
Direct supplies
98,000
Direct labor
140,000
Overhead together with depreciation
252,000
Promoting and administrative bills
50,000
Whole bills
540,000
Pretax revenue
160,000
Earnings taxes (30%)
48,000
Web revenue
112,000
Full the issues beneath. Add solutions on this template and present your work.
Drawback 1
Compute the annual anticipated internet money flows for every undertaking.
Challenge A
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Drawback 2
Decide the payback interval for every undertaking.
Drawback three
Compute the accounting price of return for every undertaking.
Drawback Four
Decide the web current worth utilizing 6% because the low cost price.
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