Managerial Accounting

Gadsen Company's quality cost report is to be based on the following data: Maintenance of test equipment $ 41,666 Quality training $ 116,666 Product recalls $ ?4,666 Quality circles $ 48,666 Rework labor and overhead $ 65,666 Liability arising from detective products $ 29,666 Supervision of testing and inspection activities $ 162,666 Reentering data because of keying errors $ T6,666 Supplies used in testing and inspection $ 116,666 Required: Complete the following Quality Cost Report. Total prevention cost Appraisal costs _ Total appraisal cost Internal failure costs _ Total internal failure cost _ External failure costs _ Total external failure cost Total quality cost Casey Nelson is a divisional ma nagerfor Pigeon Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 23% each of the last three years. Casey is considering a capital budgeting project that would require a $5,620,000 investment in equipment with a useful life offive years and no salvage value. Pigeon Company's discount rate is 19%. The project would provide net operating income each year for five years as follows: Sales $ 5,999,999 Variable expenses 2,240,000 Contribution margin 2,760,000 Fixed expenses: Advertising, salaries, and other Fixed out-of-pocket costs $ 860,000 Depreciation 1,124,000 Total Fixed expenses 1,984,000 Net operating income $ 776,000 Click here to view Exhibit 140-1 and Exhibit 140-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the project's net present value? 2. What is the project's internal rate of return to the nearest whole percent? 3. What is the project's simple rate of return? 4a. Would the company want Casey to pursue this investment opportunity? 4b. Would Casey be inclined to pursue this investment opportunity? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3 Red 4A Reg 40 What is the project's net present value? (Round your final answer to the nearest whole dollar amount.)