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According questions Project Ellayiah This company is planning to invest in a project called Ellayiah . The management accounting department received the following information _

According questions

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Project Ellayiah This company is planning to invest in a project called Ellayiah . The management accounting department received the following information _ m Sale of asset @ end of project $20,000 Networking Capital The company's tax rate is 12%. The project also earned 55200 as interest revenue. The capital expenditure is depreciated using straight line method over the project and will have a residual value of $15000 . the company will have to rent a building for $4000 during the project life. The net working capital will be returned at the end of the project REQUIRED 3) Calculate the initial investment b) Calculate each year cash flow c) Calculate the terminal value of the asset used d) Calculate the NPV e) Calculate the Profitability Index [PI] 1') Calculate IRR of the project Selected data for Babar Ltd of past year of operations are presented below: Product X Production [ in units ] 4750 Sales [ in units] 2800 Selling price $15.00 General activity [DL Hours] 5080 General activity [Machine hours] 1800 DLH RATE $21.00 Manufacturing cost Raw Materials [5] Direct Labour Hours Manufacturing Overhead Variable overhead Fixed overhead Non manufacturing cost Variable selling Fixed selling cost Estimated total fixed cost for the company 2 $54,000. Company uses direct labour hours to assign cost in its absorption method of allocating cost to manufacturing overhead. REQUIRED Calculate product cost of product X using variable cost . Calculate product cost of product X using absorption cost .. Calculate variable cost of goods for the year Find the variable-costing net income Calculate cost of goods for the year using absorption method Find the net income using absorption method P'P'PWI'J

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