Please help with multiple choice questions. 11. Within the value chain "support functions are" the:a.support activities provided to other internal business functionsb.coordination and assembly of resources to produce a product or deliver a serviceС.mechanisms by which companies deliver products or servicesd.support activities provided to the customer12. The management team at Spa Splash is considering investing in an Energies andHerbal Bar. This bar will cost $200 000 and is estimated to have a useful life of 5years, after which it will have no salvage value. Expected cash inflows are outlinedin the image given: What is the payback period for the project?Years:12345Cash Inflows: $80 000$100 000$80 000$60 000$50 000a.2 years 3 monthsb.1 year 10 monthsС.2 years 4 monthsd.1 year 4 months13. Which of the following adequately describes Management Accounting? It is theprocess of identifying, measuring and:a.analysing financial informationb.accumulating information developed for external usersC.analysing informationd.accumulating information developed for managers

Payback period refers to the time period within which a certain investment may be recovered. It is a…

Answered: Please help with multiple choice…

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Please help with multiple choice questions.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Alshamsi Ltd is a manufacturer of machine equipment product. The senior management has proposed to invest in a newmanufacturing plant that would aid in revolutionizing the machine equipment manufacturing process, and also thecompany’s products. A consultant has been engaged by the company, and has provided the following information: New equipment if purchased will cost $25,112,0 Old equipment–currently planned to be sold for $2,500,000 in four years – could be sold immediately for asalvage value of $5,250,00 If the new equipment is purchased, then this will increase the level of inventory immediately by $3,500,000, accounts receivable will increase by $1,444,500 and accounts payable increase by $3,500,000. The new equipment is estimated to have a useful life of four years and will depreciated using straight-linedepreciati At the end of four years, it is estimated that the salvage value on the new equipment will be$5,850,000. The cost of capital of the company is…
Carl's Connection manufactures add-on products for the automobile industry. The manager at Carl's Connections has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans. The second opportunity is turbocharger for sedans. Withoud either investment, the company currently expects average assets for the coming year to be $28.9 million and expects operating income to be $4.335 million. Below is the expected cost for each investment and their expected operating income. It can be assumed that the outlay is the value of the asset. Air Conditioner TurboCharger Outlay $750,000.00 $600,000.00 Operating Income $90,000.00 $82,080.00 Compute the ROI, for the company as a whole, considering each alternative below. After in percent form, round to the nearest hundredth Company ROI, if only the air conditioner investment is…
Carl's Connection manufactures add-on products for the automobile industry. The manager at Carl's Connections has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans. The second opportunity is turbocharger for sedans. Withoud either investment, the company currently expects average assets for the coming year to be $28.9 million and expects operating income to be $4.335 million. Below is the expected cost for each investment and their expected operating income. It can be assumed that the outlay is the value of the asset. Air Conditioner TurboCharger Outlay $750,000.00 $600,000.00 Operating Income $90,000.00 $82,080.00 Compute the ROI for each investment by itself and round to nearest hundreth after in percent form
Carl's Connection manufactures add-on products for the automobile industry. The manager at Carl's Connections has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans. The second opportunity is turbocharger for sedans. Withoud either investment, the company currently expects average assets for the coming year to be $28.9 million and expects operating income to be $4.335 million. Below is the expected cost for each investment and their expected operating income. It can be assumed that the outlay is the value of the asset. Air Conditioner TurboCharger Outlay $750,000.00 $600,000.00 Operating Income $90,000.00 $82,080.00 Suppose the company sets a minimum required rate of return equal to 14%. Calculate the residual income for each of the following alternatives 1. Company RI, if only the air conditioner…
JigSaw Puzzle Company is a chain of 10 retail stores that sell puzzles. In order to more efficiently process and record sales, they are considering the purchase of a point-of-sale system. You have been asked to perform the cost-benefit analysis for this new system. The system will provide annual salary savings of $200,000 for each year of the system's 7-year life. The firm's cost of capital is 12%. The system development cost is projected to be $350,000. Annual operating costs (other than salaries) will rise by $60,000 if we implement the new system. The following factors are for 12%, and 7 years: Present value of a lump sum 0.452 Present value of an annuity 4.564 REQUIRED: Using net present value analysis, evaluate the economic feasibility of the proposed system. Your analysis in #1 above deals with only one aspect of feasibility. Briefly explain other aspects of feasibility that should be considered before a final…
The manager of a division that produces add-on products for the automobile industry has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans and minivans. The second is a turbocharger. Without the investments, the division will have average assets for the coming year of $28.9 million and expected operating income of $4.335 million. The outlay required for each investment and the expected operating incomes are as follows: Air Conditioner TurbochargerOutlay $750,000 $540,000 Operating income 90,000 82,080 (Note: Round all numbers to two decimal places.) Compute the budgeted divisional ROI for each of the following four alternatives: The air conditioner investment is made. The turbocharger investment is made. Both investments are made. Neither additional investment is made. CONCEPTUAL CONNECTION Assuming that divisional managers are evaluated and rewarded on the basis of ROI performance, which…
The manager of a division that produces add-on products for the automobile industry has just been presented the opportunity to invest in two independent projects. The first is an air conditioner for the back seats of vans and minivans. The second is a turbocharger. Without the investments, the division will have average assets for the coming year of $29.4 million and expected operating income of $4.335 million. The outlay required for each investment and the expected operating incomes are as follows: Air conditioner Turbocharger Outlay $850,000 $540,000 Operating income 90,000 98,080 Required: 1. Compute the ROI for each investment project. Round to the nearest whole percent. Air conditioner, ROI fill in the blank 1 % Turbocharger, ROI fill in the blank 2 % 2. Compute the budgeted divisional ROI for each of the following four alternatives. Round to two decimal places. a. The air conditioner investment is made. fill in the blank 3 % b. The turbocharger…
Q5. Hemisphere, LLC is planning to outsource its 51-person information technology (IT) department to Dyonyx. Hemisphere’s president believes this move will allow access to cuttingedge technologies and skill sets that would be cost prohibitive to obtain on its own. If it is assumed that the loaded cost of an IT employee is $100,000 per year and that Hemisphere will save 25% of this cost through outsourcing, determine the present worth of the total savings for a 5-year contract at an interest rate of 6% per year, compounded monthly.
Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at$400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) Financial Analysis for Project Name Created by: Date: Note: Change the inputs, shown in green below (i.e. interest rate, number of…
Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) What I have so far is attached I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.
Walden Industries is considering investing in production−management software that costs $620,000, has $60,000 residual value, and leads to cost savings of $2,310,000 per year over its five−year life. Calculate the average amount invested in the asset that should be used for calculating the accounting rate of return. A. $340,000 B. $60,000 C. $680,000 D. $620,000
Hoosier Corporation is an entertainment company that produces and distributes digital content and operates its own amusement parks. The company is looking into expanding into a new market, Hoosiersville. There are several projects the CEO considers investing in to capture the values brought by the market. One project for consideration is an improvement to the existing amusement park in Hoosierville. If the project gets approved, the company expects an annual sale of $19.6 million from ticket sales, food, and concessions at the park, with an expected growth of 2.5% annually for a project life of 8 years. The annual operating expenses are expected to be 34% of sales, and the working capital (needed immediately) is expected to be 10% of the next year’s sales. The Tax Rate is 21% In addition, the CEO determines that the new park will need to buy a new rollercoaster which will have a $3 million upfront cost. The rollercoaster will be depreciated straight-line for eight years to an…

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