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ACCOUNTING 2 3 0 2 . 0 2 1 Final Project The Final Project has two parts: 1 ) Capital Investment Analysis ( 5 0
ACCOUNTING Final Project The Final Project has two parts: Capital Investment Analysis points; Financial Statement Analysis. points The project is worth a total on points. Part Eagle Manufacturing Company is planning to add a new product to their production process. The company will need to buy a new piece of equipment at a cost of $ with a four year expected life and a $ salvage value. The company uses the Straightline method of depreciation. Additional information is as follows: Expected annual sales of new product $ Expected increase in annual costs: tableirect Materials...,irect verhead Excluding DepreciationAdministration expenses.,x Expense............., a Calculate the Accounting RateofReturn b Calculate the Net Present Value of the new equipment assuming a discount rate of
ACCOUNTING
Final Project
The Final Project has two parts: Capital Investment Analysis points; Financial Statement Analysis. points The project is worth a total on points.
Part Eagle Manufacturing Company is planning to add a new product to their production process. The company will need to buy a new piece of equipment at a cost of $ with a four year expected life and a $ salvage value. The company uses the Straightline method of depreciation. Additional information is as follows:
Expected annual sales of new product $
Expected increase in annual costs:
tableirect Materials...,irect verhead Excluding DepreciationAdministration expenses.,x Expense.............,
a Calculate the Accounting RateofReturn
b Calculate the Net Present Value of the new equipment assuming a discount rate of
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