Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Batefeu In considering tw muually exclusive projects A and 11. Each project requires initial unewal as peeserded is the below table. The souc te of

image text in transcribed
image text in transcribed
Batefeu In considering tw muually exclusive projects A and 11. Each project requires initial unewal as peeserded is the below table. The souc te of the project A will be 5-Year's and Project it will be o years, and hoh peujects carry same rok Batetee loc uvey a discount of 12% Aller comidering the current economach ac loc har set a maximum payback period of 4 years and minun return on event (ROD) 18 A financial analys, preparat estimates of the annual revenues and contacted with each project as in the below table Projects A 240,000 40.000 Projects 40,000 50.000 Working Capital needed Overhand of the equipment in 12000 14000 two years Annual revenues and costs Sales revenues 375.000 300,000 Variable expenses 180,000 90.000 Depreciation expense 48,000 78,333 Fixed odof-pocket operating 0000 70.000 Life of Project 5 year 6 years The working capital will be released 5th and 6th year of the project A and project It respectively, for investment elsewhere within the company) Required: 1. Calculate the net present value for each project (4 Marks) 2.Calculate the simple rate of return for each product. (4 Marks Which of the two projects (if either) would you recommend that Batelco Inc. acceper Why? (2 Mark) Present value tables are given below to determine the appropriate discount factors wing the tables provided The May 31 inventory balance is budgeted at $63,000. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These ex The note payable on the April 30 balance sheet will be paid during May, with $300 in interest. (All of the New refrigerating equipment costing $11.900 will be purchased for cash during May. During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank f Required: Using the information provided, prepare the following: 1. The budgeted expected cash collections from customers for May. [2 marks] 2. The budgeted expected cash disbursements for merchandise purchases for May. [1 marks] 3. The cash budgeted for May. [5 marks] For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Only The Strongest Women Become Auditors

Authors: Auditor Publishing

1st Edition

1660768675, 978-1660768677

More Books

Students also viewed these Accounting questions