[CLO-6] A project will have an initial cost of $1.1 million with an annual maintenance cost of $10,000 and a 10-year life. The benefits of the project are expected to be $175,000 per year while the disbenefits (reduced from benefits) are estimated to be $25,000 per year. Using the conventional B-C ratio method with AW, calculate the B-C ratio assuming an interest rate of 6% per year.

Q: Swad Enterprises is considering a new three-year expansion project that requires an initial fixed…

A: Operating cash flows: Cash flows which are generated by using company production activities. this…

Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: 3. A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…

A: B-C ratio = 1.4 Annual net benefits (B) = P560,000 Interest rate (i)  = 6% Period (n) = 20 Years

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…

A: Benefit to cost ratio (BC) = 1.40 Annual net benefit (NB) = P560,000 Interest rate (r) = 6% Life (t)…

Q: Complete the following problems using the information given below: o Total Project Cost: o Lender…

A: Capital budgeting techniques are the decision making tools which helps the companies in making…

Q: the management of Bronco Busters Boots Inc. is considering a project with a net initial outlay of…

A: IRR: IRR is the internal rate of return. It is the rate at net present value of the project is equal…

Q: 2. Project A requires an investment of $5,000 today and pays $3,000 at the end of year 1 and $4,000…

A: NPV means PV of net benefits which will arises from the project in coming years. It is equal to the…

Q: A project has an initial cost of $45,000, expected net cash inflows of $12,000 per year for 7 years,…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outlays relate to proposal discounted…

Q: You must decide firm which of the proposed projects should be accepted for the upcoming year since…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: 4 f the terminal balance of a 5-year project at 10% s 0, then which one below is true? O A. The IRR…

A: Since you have posted multiple questions, we will solve only the first question for you. If you want…

Q: The initial investment of a project is OMR 50,000. The profit after interest and tax (Cash inflows)…

A: Option a is correct.

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…

A: Benefit to cost ratio helps in understanding the relationship between the cost and benefit of a…

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…

A: Benefit to cost ratio = 1.4 Annual benefits (P) = P 560,000 Interest rate (r) = 6% Period (n) = 20

Q: 3. ABC is planning to undertake a certain project that will require an investment of P 350,000 from…

A: Loan interest rate = 18% Tax rate = 35% Expected realized rate of return = 22%

Q: b) Find the IRR of the following projects and make your decision. Assume that the projects' cost of…

A: The computation of IRR: Hence, the IRR of project B is 12.13%.

Q: The initial investment cost of a project is 81.500 TL and its annual income is 20.000 TL / year. If…

A: The discounted payback period is the time period in which the project will pay back its initial…

Q: A project has an initial cost of $50,000, expected net cash inflows of $11,000 per year for 7 years,…

A: NPV net present value can be found out by calculating present value of cash flow and deducting…

Q: Show complete solution.  4. Atty. Gacayan invested P280, 000 which will be used in a project that…

A: Before investing in new projects or assets, profitability of the project is evaluated by using…

Q: calculate  the NPV of the project at 12% discount rate.

A: Information Provided: Initial Investment = $900 Sales = $1100 per year forever Costs = $600 (Year…

Q: 5.Milen is considering an investment of $150,000. The useful life of the project is 15 years. The…

A: Formula: 1. PV Factor= 11+rn Where,  r is rate of return n is number of period 2. NPV= Rt1+it where,…

Q: Torpedo Co. is considering a new project generating an annual cash revenue of $500,000 in…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: b) Find the IRR of the following projects and make your decision. Assume that the projects' cost of…

A:

Q: 16. Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment…

A: In order to calculate the present value of the annuity, following formula will be used PV = PMT (1 +…

Q: 7. In a project, the initial outlay is R$30,00,000; useful life of the project is 10 years; net cash…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. A project with…

Q: What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of…

A: To select a project, the net present value of cash inflows and outflows are calculated and then…

Q: What is the payback period of a project that has \$5 540,000 in initial investment , \$150,000 in…

A: Net annual cash flows = Annual cash inflows - Annual cash outflows             = 150,000 - 60,000…

Q: The capital cost of a certain project is $625,000 and the annual expenses are $33,000. If the study…

A: Capital Cost = -625,000 Annual Expenses = -33,000 Time Period (N) = 11 years Interest Rate = 7.25%…

Q: 9. Calculating Project OCF H. Cochran, Inc., is considering a new three-year expansion project that…

A: Solution : Operating Cash Flow ( OCF) means that Cash flow which was generated by entity through his…

Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD's expected rate of return is…

A: The present value (PV) factor is used on a future date to calculate the current value of a cash…

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of…

A: B-C ratio = 1.40 Annual net benefits = P560,000 Interest rate = 6% Period = 20 Years

Q: 40. A firm that applies a 20% MARR on its investments is considering one of two 7-year engineering…

A: The investment appraisal method where the cash flows difference between two proposals are considered…

Q: You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n…

A: GIVEN, INITIAL INVESTMENT = $100,000 1 40,000 2 40,000 3 30,000 R=10%

Q: u) Project P rcquires an mvcsiment of $95,000 and is expecled lo pro of $20,000 per year for 8…

A: (a): Payback = initial investment/annual cash flow

Q: NUBD Co. is planning to invest P40,000 in a three-year project. NUBD’s expected rate of return is…

A: The term "present value" refers to the adjustment of the actual amount with the interest rate to…

Q: Calculating NPV and IRR (LO1, 5] A project that provides annual cash flows of $28,500 for nine years…

A: The net present value (NPV) is a capital budgeting method that helps to evaluate a project's…

Q: You must decide firm which of the proposed projects should be accepted for the upcoming year since…

A: Net Present Value (NPV) is a capital budgeting technique that uses a discount rate to bring all the…

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.5. The conventional annual worth of…

A: Benefit to cost ratio (BCR) = 1.5 Annual benefit = P560,000 Annual disbenefits = P100,000 Annual net…

Q: 2. Data for two alternatives are as follows: Alternative A Investment P 35,000 Annual Benefits…

A: The IRR help in evaluating the profitability of the potential investment. It provides insight into…

Q: 5. Koral Corporation can invest in a project that costs $400,000. The…

A: Net present value is the technique used in capital budgeting to evaluate the acceptability of the…

Q: 3.) A project is estimated to cost $350,000, last 9 years, and have a salvage value of $90,000. The…

A: First we need to calculate present value(PV)  of all annual cash inflows by using this equation PV…

Q: Suppose that a project has an immediate cost of $10 million and running costs of $1 million per year…

A: A. NPV = Cash inflow- Cash outflow Cash outflow= $ 10 million Cash inflow= Net profit/ interest rate…

Q: Jamaica Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project…

A: In the given question we need to compute the Net Present Value of the Project.. Net Present Value =…

Q: Project A requires an initial outlay of $10000 and will last for 5 years. The investment will be…

A: The initial outlay of the Project A is $10,000. The life time of the project A is 5 years.

Q: a) Find the PP and NPV of the following projects. Assume that the projects' cost of capital (or…

A: a) The computation of NPV: Hence, the NPV is $70.36

Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.