24. Revenue Recognition, Cost Allocation, and Capital Budgeting:

GHI Corporation provides consulting services and recognizes revenue when services are performed. During the year, GHI Corporation started two projects: Project A with a total contract value of $600,000 and Project B with a total contract value of $400,000. At the end of the year, Project A was 60% complete, and Project B was 40% complete. Determine the revenue recognized for each project. Additionally, allocate $200,000 of overhead costs between two production departments based on direct labor hours. Lastly, GHI Corporation is considering investing $700,000 in new equipment that is expected to generate cash flows of $200,000 in the first year, $300,000 in the second year, and $400,000 in the third year. Calculate the net present value (NPV) of the investment assuming a discount rate of 10%.