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please solve above questions PRINTER VERSION Question 6 A segment has the following data: Sales Variable expenses Fixed expenses What will be the incremental effect
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PRINTER VERSION Question 6 A segment has the following data: Sales Variable expenses Fixed expenses What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $670000 285000 550000 O Cannot be determined from the data provided O $385000 increase $385000 decrease O $4750 decrease SUI SAVE FOR LATER Question Attempts: 0 of 2 used Question 7 Bonita Company is considering two capital investment proposals. Estimates regarding each project are provided below Initial investment Annual net income Net annual cash Project Echo Project Charlie $398000 $597000 45000 142000 24000 106000 inflow Estimated useful life Salvage value 5 years 0 6 years 0 The company requires an 10% rate of return on all new investments. Present Value of an Annuity of1 990 10% 3.993 3.890 3.791 3.696 Periods 890 11%, 5 6 4.623 4.486 4.355 4.231 The net present value for Project Charlie is O $618410 O $21410 Initial investment Annual net income Net annual cash $398000 $597000 inflow Estimated useful life Salvage value 24000 106000 5 years 45000 142000 6 years 0 0 The company requires an 10% rate of return on all new investments. Periods 8% 9% 10% 11% 3.9933.890 3.791 3.696 4.623 4.486 4.355 4.231 6 The net present value for Project Charlie is O $618410 O $21410 O $10600o. O $201832Step by Step Solution
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