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Home Insert Page Layout Formulas Protected View This file originated from an Internet location and might be unsafe. Click for more details. Enable Editing D2 B - C fx D A E F G H Name: Course: AAALALA Date: E12-10 - Compute annual rate of return, cash payback period, and net present value Managerial Accounting, 6" Edition, by Weygandt, Kieso, and Kimmel Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse Ovo Exercise E12.10 Vilas Company is considering a capital investment of $190.000 in additional productive facilities. The new machinery is expected to have a useful life of E 5 y ears with no salvage value. Depreciation is by the straight-line method During the life of the investment annual net income and net annual cash flows are expected to be $12.000 and 550.000 respectively Vilas has a 12% cost of capital rate which is the required rate of return on investment Instructions: (al(1) Compute the cash payback period. Round to two decimals. 15 16 Iyears (at2) Compute the annual rate of return on the proposed caoital expenditure. (Round to two decimals.) by using the discounted cash flow technique, comoute the net present value. (Round to two decimals.) Years PV Factor Present Value A mount Item Net annual cash capiti investment not present value 25 30 BOSTO Mrs. Lisa Desktop Libraries FB # 4 7 5 6 m U Tab e E R T Y I W A S D F G Caps Lock H ] y B N M TUULOLL. LIPUL LUP D2 DEF G H 1 Prepare quarterly production budgets for quarter and in total for 2014. TURNEY COMPANY Production Budget For the Year Ending December 31, 2014 Product HD-240 Quarter T 1 2T 3T 4 Year 29 Expected unit sales 30 Add: Desired ending finished goods units 31 Total required units 32 Less: Beginning finished goods units 0/ 33 Required production units 34 35 (1) 40% of next quarter's sales. 46 ORL Sheet3 E9 4 Budgets Ready Mrs.Lissa Libraries Desktop FB 5 6 ABCD Name: Course: Date: E9-4 - Prepare quarterly production budgets Managerial Accounting, 6th Edition, by Weygandt, Kieso, and Kimmel Pimer on Using Microsoft Excel in Accounting by Rex A Schildhouse 5 7 9 10 Exercise E9-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales budget is as follows. Quarter HD-240 1 5 ,000 7,000 3 8.000 10,000 The January 1, 2014, inventory of HD-240 is 2.000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2015 are expected to be 250 higher than sales in the same quarter in 2014 4 Instructions: Prepare quarterly production budgets for quarter and in total for 2014 TURNEY COMPANY Production Budget the Year Ending December 31, 2014 Product HD-240 Outer 94 Bridgat Ready Mrs. Lissa Desktop Libraries F6 F3 5 6 2 3 4 E R T Y Tab e W

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