i need help with these two accounting 2102 questions and can you show the work for them please Required informationThe Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6][The following information applies to the questions displayed below.]Cardinal Company is considering a five-year project that would require a $2,805,000 Investment in equipment with auseful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operatingincome in each of five years as follows:SalesVariable expensesContribution marginFixed expenses:Advertising, salaries, and other fixedout-of-pocket costsDepreciationTotal fixed expensesNet operating incomeFoundational 12-14 (Algo)Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.Payback period52$ 642,000561,00014. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio,which actually turned out to be 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.)yearsF3$ 2,741,0001,125,0001,616,0001,203,000$ 413,000F4< PrevF514 15of 15MacBook ProF6Next >F7 Required informationThe Foundational 15 (Algo) [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6][The following information applies to the questions displayed below.]Cardinal Company is considering a five-year project that would require a $2,805,000 investment in equipment with auseful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operatingIncome in each of five years as follows:SalesVariable expensesContribution marginFixed expenses:Advertising, salaries, and other fixedout-of-pocket costsSimple rate of return$ 642,000561,000DepreciationTotal fixed expenses1,203,000Net operating income$ 413,000Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using table.%Foundational 12-15 (Algo)15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio,which actually turned out to be 50%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.)F3$ 2,741,0001,125,0001,616,000F4Saved< PrevF5815 of 15wwwwwwMacBook ProF6Next >F7

Payback period is the time which is used to determine that a project or an investment has produced…

14. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years

14. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 50%. What was the project's actual payback period? (Round your answer to 2 decimal places.) Payback period years

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer is $105,952.53 , see Fully explain only in excel with correct explanation pls i need explanation and concept too pls definitely ill rate Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.35 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which it will be worthless. The project is estimated to generate $1,745,000 in annual sales, with costs of $655,000. The tax rate is 22 percent and the required return is 12 percent. What is the project's NPV? .
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E7.7 (LO 3, 4), AP Shruti Shrills is considering an expansion of one of its existing buildings to add more manufacturing space for its kid-friendly noisemakers. Several possible scenarios exist for future cash flows, as follows. 1. Construction costs of $500,000; steady sales and costs each year, netting to an annual operating cash inflow of $70,000; the expansion would have no salvage value at the end of its 10-year useful life (the building would be repurposed for a different product).2. Construction costs of $500,000; rising and then falling net cash flows each year for 10 years, as follows: $50,000 for the first 2 and last 2 years, $175,000 for years 3–5, and $100,000 for years 6–8.3. Construction costs of $700,000; no cash flows in year 1, $75,000 in years 2 and 3, $150,000 in year 4, $100,000 in years 5–8, and $50,000 in the last 2 years.Required 1. Calculate the simple payback period for all three scenarios.2. Assume that Shruti will only accept investments with a payback period…
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $17,820,000 and will be sold for $3,960,000 at the end of the project. Required: If the tax rate is 34 percent, what is the aftertax salvage value of the asset? rev: 09_18_2012 Multiple Choice $3, 660,561 $2,613, 600 $4, 259, 439 $3,843,589 $3,477,533
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V14 Steadman Company is considering an investment in a new machine for an independent five-year project. The machine’s cost is $837,500 with no salvage value at the end of five years. Net cash inflows from the project are expected to be $252,500 annually. Steadman would depreciate the machine using the MACRS schedule, and the machine qualifies as a 5-year asset. Steadman uses a discount rate of 8%, and its tax rate is 30%. Required: 1. Determine the after-tax net income and after-tax cash flows from the investment. Refer to Exhibit 12.4 for the 5-year MACRS deprecation schedule. 2. Determine the NPV of the project. 3. Determine the IRR of the project. 4. Determine the payback period of the project, assuming that cash flows occur evenly in each year. 5. Determine the book (accounting) rate of return using both (a) the initial investment as the denominator and (b) the average book value of the investment as the denominator.
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Verno Inc, is considering Projects L. However company has lost investment information for Project L. Payback period for the projects is 3 years. What is the IRR of the project L ? 01234 CFL -$X. $600. $620. $570. $520 A.11.1% B. 11.08% C. 11.35% D. 11.21% E. 10.95% (No chatgpt answer)
The following information relates to three potential investment projects that are being considered by Scrappit plc. Due to capital rationing, only one of the three projects can be pursued. Project A Project B Project C £ £ £ Initial cost 175,000 195,000 190,000 Expected life 5 years 5 years 5 years Scrap value expected 5,000 8,000 4,000 Expected cash inflows: End of year 1 75,000 95,000 50,000 2 65,000 65,000 60,000 3 60,000 45,000 65,000 4 55,000 45,000 66,000 5 50,000 45,000 57,000 Additional information: Scrappit plc estimates its cost of capital to be 18%. £35,000 depreciation is charged to Project A each year. £39,000 depreciation is charged to Project B each year. £38,000 depreciation is charged to Project C each year (a) Calculate the payback period, accounting rate of return and net present value of each of thepotential projects.(b) Explain which of the…
3. A proposed cost-saving device has an installed cost of $450,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $30,000, the marginal tax rate is 35 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $75,000. What level of per year pretax cost savings do we require for this project to be profitable?