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C11Q4566 please construct matching charts so i can understand where the numbers go! :) [The following information applies to the questions displayed below. Most Company
C11Q4566
[The following information applies to the questions displayed below. Most Company has an opportunity to invest in one of two new projects. Project Y requires a $325,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $325,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (PV of $1. FV of $1. PVA of $i, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Project y Project Sales $390,000 $312,000 Expenses Direct materials 54,600 39,000 Direct labor 78,000 46,800 Overhead including depreciation 140,400 140, 400 Selling and administrative expenses 28,000 28,000 Total expenses 301,000 254,200 Pretax income 89,000 57,800 Income taxes (328) 28, 480 18, 496 Net income $ 60,520 $ 39, 304 Required: 1. Compute each project's annual expected net cash flows. Project Y Project z 2. Determine each project's payback period. Payback Period 1 Choose Denominator: Choose Numerator: = Payback Period Payback period 0 11 Project Y Project 2 0 3. Compute each project's accounting rate of return. Accounting Rate of Return Choose Numerator: Choose Denominator: Accounting Rate of Return Accounting rate of retum 1 Project Y Project 2 4. Determine each project's net present value using 7% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.) Project Y Chart values are based on: n= Select Chart Amount X PV Factor Present Value Net present value Project z Chart values are based on: Select Chart Amount PV Factor Present Value Net present value please construct matching charts so i can understand where the numbers go! :)
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