Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Word File Edit View Insert Format Tools Table Window Help G O Q Mon Jul 25 8:05 PM AutoSave OFF A A . CGE ...
Word File Edit View Insert Format Tools Table Window Help G O Q Mon Jul 25 8:05 PM AutoSave OFF A A . CGE ... w ACCT 611 Final Exam Take Home Questions - Set | Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments Update Calibri (Bo... v 11 v A A Aa Ap AaBbCcDdEe AaBbCcDdEe AaBbCcDc Adobe > > Paste BIUvab X X A DAY Normal No Spacing Heading 1 Styles Dictate Sensitivity Editor Pane X e your Kiva Corporation's management keeps track of the time it takes to process orders. During the tion most recent month, the following average times (days) were recorded per order: (30 points) Wait time 22.8 Inspection time 2.1 Process time 5.6 Move time 0.5 Queue time 41 Required: mpute the throughput time. b. Compute the manufacturing cycle efficiency (MCE). c. What percentage of the production time is spent in non-value-added activities? d. Compute the delivery cycle time. Honor Code, Page 4 of 7 918 words LX English (United States) Ex Accessibility: Investigate Focus E - + 100% owner JUL 1 O 25 W O PWord File Edit View Insert Format Tools Table Window Help G O Q Mon Jul 25 8:06 PM AutoSave OFF A A ? CGP ... w ACCT 611 Final Exam Take Home Questions - Set | OP Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments date Calibri (Bo... v 11 v A A Aav Ap AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEE be > > Paste BIUvab X X A DAY Normal No Spacing Heading 1 Heading 2 Styles Dictate Sensitivity Editor Pane X 6. Indiana Corporation has the following information about the purchase of a new piece of equipment: (35 points) Cash revenues less cash expenses $55,000 per year Cost of equipment $150,00 Salvage value at the end of the 9th year $15,000 Increase in working capital requirements $45,000 Tax rate 40 percent Life 9 years The cost of capital is 14 percent. Required: a. Calculate the following assuming straight-line depreciation: i Calculate the after-tax net income for each of the nine years. i. Calculate the after-tax cash flows for each of the nine years. ii. Calculate the after-tax payback period. v. Calculate the accrual accounting rate of return on original investment for each of the nine years. . Calculate the net present value (NPV vi. Calculate the internal rate of return (IRR). b. Calculate the following assuming that depreciation expense is $27,000, $24,000, $21,000, $18,000, $15,000, $12,000, $9,000, $6,000 and $3,000 for years 1 through 9, respectively: Calculate the after-tax cash flows for each of the nine years . Calculate the after-tax payback period. ii. Calculate the net present value (NPV). iv. Calculate the internal rate of return (IRR). Page 6 of 7 918 words X English (United States) x Accessibility: Investigate Focus + 75% JUL C O 25 W O P
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started