1. mcknight company is considering two different capital expenditure proposals. project a will cost $400,000, has an expected useful life of 10 years, a salvage value of zero, and is expected to increase net profit in year 10 by $70,000. project b will cost $310,000, has an expected useful life of 10 years, a salvage value of zero, and is expected to increase net profits by $55,000. a required rate of return of 9% is appropriate for both projects. calculate: a) the net cash flow in year 10 for projects a and b b) the present value of the net cash flows for projects a and b

Answers

Answer 1

Answer and Explanation:

The computation of the net present value and profitability index of each project is shown below;

The net present value

For the project 1

= Present value × PVIFA factor for 10 years at 9% - initial cost

= $70,000 × 6.4177  - $400,000

= $49,239

for the project 2

= Present value × PVIFA factor for 10 years at 9% - initial cost

= $55,000 × 6.4177  - $310,000

= $42,973.5

Now the profitability index is

For project 1

= ($70,000 × 6.4177) ÷ $400,000

= 1.12

And, for project 2

= ( $55,000 × 6.4177) ÷ $310,000

= 1.14


Related Questions

Wich of the following accounts is credited after the sale of a fully depreciated asset

Answers

Answer:

Relevant asset account is credited

When a manager has control over and is accountable for cost, profit or investments of an organization, it is called ________.

Answers

Answer:

it's called an responsibility center

There has been a relative _____ in employment to produce agricultural products in the US. At the same time, the US is producing _____ agricultural goods

Answers

There has been decline in employment to produce agricultural products even though the US is producing more agricultural goods.

What is employment?

employment serves as the process of utilization of one skill so as to get paid in return.

In US, one of the department that brings money is agriculture which gives employment to more citizens.

Therefore, US are producing more agricultural products.

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Software upgrade times (in minutes) are being evaluated. samples of five observations each have been taken, and the results are as listed.
sample
1 2 3 4 5 6
79.2 80.5 79.6 78.9 80.5 79.7 78.8 78.7 79.6 79.4 79.6 80.6 80.0 81.0 80.4 79.7 80.4 80.5 78.4 80.4 80.3 79.4 80.8 80.0 81.0 80.1 80.8 80.6 78.8 81.1

Answers

According to the information above, the average time of each sample is: Sample 1 = 79.7, Sample 2 = 79.2, Sample 3 = 80.3, Sample 4 = 79.8, Sample 5 = 80.3 and, Sample 6 = 80.2.

How to calculate the average time in minutes of each sample?

To calculate the average time (in minutes) of each sample, we must add all the values ​​and then divide the result by the number of values ​​that we used, in this case the number five as shown below:

Sample 1 = 79.2 + 80.5 + 79.6 + 78.9 + 80.5 = 398.7398.7 ÷ 5 = 79.7

Sample 2 = 79.7 + 78.8 + 78.7 + 79.6 + 79.4 = 396.2396.2 ÷ 5 = 79.2

Sample 3 = 79.6 + 80.6 + 80.0 + 81.0 + 80.4 = 401.6401.6 ÷ 5 = 80.3

Sample 4 = 79.7 + 80.4 + 80.5 + 78.4 + 80.4 = 399.4399.4 ÷ 5 = 79.8

Sample 5 = 80.3 + 79.4 + 80.8 + 80.0 + 81.0 = 401.5401.5 ÷ 5 = 80.3

Sample 6 = 80.1 + 80.8 + 80.6 + 78.8 + 81.1 = 401.4401.4 ÷ 5 = 80.2

According to the above, it can be inferred that the samples that took the longest time are Sample 3 = 80.3, and Sample 5 = 80.3. On the other hand, the sample that took the least time was: Sample 2 = 79.2.

Note: This question is incomplete because there is some information missing. The question is:

What is the average time (in minutes) of each sample?

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How is a mutual fund different than an index fund?

Answers

Answer:

Index funds are mutual funds, but instead of owning maybe twenty or fifty stocks, they own the entire market. (Or, if it's an index fund that tracks a specific portion of the market, they own that portion of the market:)

What is wrong with the following outline?

When teenagers give community service, they not only benefit the community but themselves.
Community service fulfills special needs in the community that might otherwise be neglected.
Volunteers often provide the only companionship that some of the elderly or disabled have because many people in nursing homes do not have family nearby.
Big Brother/Big Sister programs offer kids opportunities to learn, play, and socialize, which they would not otherwise have because of working parents.
Teenagers who perform community service benefit from the knowledge that they are making a difference.
Teenagers involved in neighborhood clean-up programs can see tangible evidence of how the clean streets and parks improve the community.
Teenage volunteers at food banks and soup kitchens are able to focus on the needs of others and see how they can fulfill those needs.
Many teenagers do not volunteer because they don't know how to get involved.
There are many resources that can help you find a service that's right for you.
The Internet is a great way to search for community service opportunities.
Your local community center or public library can be a good resource.
Ask teachers or parents how you can get involved.
There aren't enough main points.
There's nothing wrong with the outline.
There aren't enough subpoints for each main point.
There aren't enough supports for each subpoint.

Answers

Answer:

there are not enough subpoints for each main point

Answer:

B. There aren't enough subpoints for each main point.

Explanation:

The reason is that the outline has the main points which is good. But there isn't enough reasoning or smaller points to prove these main points.

smart manufacturing is achieved by instituting employee surveillance and monitoring.

Answers

For a manufacturing process to be smart instituting employee surveillance and monitoring is very important.

What is Smart Manufacturing?

Smart Manufacturing also called CAD/CAM, computer aided design and computer aided manufacturing involves the integration of computer in the production of goods and services.

In recent times the concept of internet of things is being added to smart manufacturing for data collection

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A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same rate no matter how many children there are, or when the service is needed. Then they divide areas of town on a map between them, agreeing to only serve customers within their respective areas. Within weeks they have gained most of the business in town, driving out other teens that cannot lower their rates. The babysitting market in your town has become

Answers

The babysitting market in the town has become an oligopoly.

What is an Oligopoly?

An Oligopoly is an industry which is influenced by the firms.

In oligopoly, there are very few sellers and all are influenced by the behavior of the other sellers.

In this market, sellers deal in homogenous product.

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Answer: am oligopoly

Explanation: i got it right

Aslam wants to create multiple worksheet containing common formatting styles for his team members. which file extension helps him to save these worksheets? help aslam to create multiple worksheets with common styles. he needs to save them with the extension.

Answers

The file extension that can be used to save the worksheets is Templates because he needs to save them with the .xlts extension.

What is a Worksheet?

This refers to where information is stored and contains a database with data and parameters.

Hence, we can see that because Aslam wants to make multiple worksheets that have a common formatting style for his team members, he would need to use templates that save with the .xlts extension.

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On february 2, miles inc. Pays $800 to purchase a one-year insurance policy that will expire next year on january 31. Miles indicates this transaction in its books by recording an $800 reduction in cash and an $800 increase in expenses. Did miles make the proper accounting entries? why or why not?.

Answers

If on february 2, miles inc. Pays $800 to purchase a one-year insurance policy. No miles did not  make the proper accounting entries.


What is insurance policy?

Insurance policy can be defined as a coverage that help to cover cost incase of unforeseen circumstance.

Based on the scenario mile did not makes the proper accounting entries based on the following:

Prepaid insurance is not an expense but an asset.Hence, the company should have offset the decrease in cash of the amount of $800 and  $800 increase in prepaid insurance into an asset account.

Therefore miles did not  make the proper accounting entries.

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Which of these is a disadvantage of owning your own business?
A. You set your own rules, hours, and direction of your business.
B. You can work in the field you love best.
C. When your business makes money, you profit the most.
D. When your business loses money, you are responsible for the debt.

Answers

Answer:

D

Explanation:

If you own the business, and you experience a loss, you are responsible for the loss. The other answers are positive advantages

A company reports the following at year end: sales of $22,000; cost of goods sold $12,000; net income $6,000; average merchandise inventory $4,500. Inventory Turnover is calculated to be:

Answers

As per the given reports at year-end, the cost of goods sold is $12,000 and the average merchandise inventory is $4,500. The inventory turnover is 2.67.

What is inventory turnover?

Inventory turnover refers to the measure of the number of times inventory is sold or used in a period.

The inventory turnover ratio is calculated by dividing the cost of goods sold and the average inventory. The inventory turnover is 2.67 (12,000/4,500).

Therefore, the inventory turnover ratio is 2.67.

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Question 3
You should plan on spending two
thirds of your paycheck on rent and
household expenses.
True.
False.
Question 4

Answers

Answer:

true

Explanation:

i think it true sorry if im wrong

Information campaigns about tobacco hazards and taxes on tobacco are two ways to discourage its use. Which one causes a movement along the demand curve, without making changes to the demand curve itself

Answers

Information campaign on hazardous tobacco one causes a movement along the demand curve.

What is an information campaign?

Information campaign's main motive is to provide the useful information to the people. The people in information campaign try to spread the awareness about the different things like save the girl child, equality above everything, say no to tobacco.

Thus, it is an Information campaign on hazardous tobacco.

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Your company makes Caffeine Cola, but the market for it disappears overnight when caffeine is discovered to be toxic. The next day, you begin producing Cholesterol Cola, a new product. You have experienced

Answers

If the next day, you begin producing Cholesterol Cola, a new product. You have experienced: Reactive change.

What is Reactive change?

Reactive change  occur when a company or an organization make changes in their product  so as to handle unexpected or unforeseen events or situation that occurred.

Based on the given scenario you have experienced reactive change because you implemented a new change to your product that was found toxic without delay.

Therefore you have experienced: Reactive change.

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You see a white marker with an orange diamond and black lettering. what does this marker tell you?

Answers

Answer:

A white marker with an orange diamond and black lettering is a sign that warns boaters of possible dangers ahead, such as rapids, rocks, and dams.

The description you provided suggests a specific type of marker commonly used in various contexts, such as construction sites, roadways, or events.

The implication of the marker

Typically, markers like these are used for identification or communication purposes.

Markers can have different meanings depending on the context in which they are used. For example, in some situations, an orange diamond-shaped marker with black lettering may indicate a warning or cautionary sign, alerting people to potential hazards or dangers in the area.

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C. the "difference between growth and value shares involves a distinction based on book-to-market value. justify the low book-to-market ratios of growth shares versus high book-to-market ratios of value shares. (10 marks)

Answers

Answer:

Explanation:

C. the "difference between growth and value shares involves a distinction based on book-to-market value. justify the low book-to-market ratios of growth shares versus high book-to-market ratios of value shares. (10 marks)

In addition to needs, what should you plan for first when
creating a budget?

Answers

Answer: recurring expenses

Explanation:

Having just graduated with a degree in business, Brianna looks over several offers she has received from companies interested in her talents. She is specifically interested in the wage setup each company is offering. One wants her to manage a small store; this would be a salaried position. Another would have her working in a sales office on commission. The third is a spot in a paper company as an hourly sales manager. Brianna has been offered a chance to do per-project work for a retail company, but she would be an independent contractor. Compare and contrast these

Answers

Answer:She's just getting started financially and decides not to join her field's major professional association because she thinks it's not worth the annual fee.

Explanation:There u GO!!<3:)

Which of the following is a face to face meeting with a potential employer
to discuss a job opening?

job market
Job shadowing
Job interview
job description

Answers

Your answer would be a Job interview

A large three-car detached garage is constructed on a homesite at a cost of $65,000. The appraiser researches the market and finds that this garage only adds $30,000 in value to the property. Which valuation principle does this demonstrate?

Answers

"A large three-car detached garage is constructed on a homesite at a cost of $65,000. The appraiser researches the market and finds that this garage only adds $30,000 in value to the property."  The valuation principle does demonstrate is a contribution. This is further explained below.

What is contribution?

Generally, contribution is simply defined as the provision of something (as in money or effort) as a proportional share.

In conclusion, contribution is a major valuation principle.

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Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends.
Required:
1. Prepare a statement of cash flows for the year.
2. What does this statement tell you that an income statement does not?

Answers

Based on the given figures for Colorado Corporation, the statement of cash flows for the year would be:

Cash flow for Operating Activities

Cash from customers                                                                  93,970  

Less:

Cash for inventory                                                65,600

Salaries and Wages                                             20,400

Taxes                                                                       3,100           ( 89,100)

Net Cash from Operating Activities                                            4,870  

Cash flow from Investing Activities

Purchase of office building                                                      (210,000)

Net cash used for Investing Activities                                     (210,000)

Cash flow from Financing Activities

Issuance of Common stock                                                     250,000

Note Payable                                                                              60,000

Dividend payment                                                                      (5,600)

Net cash from Financing Activities                                        304,400

Net increase in cash                                                                 99,270

Opening cash balance                                                                      0

Closing cash balance                                                                99,270

What does the statement of cash flows show?

It shows transactions that involve actual cash being spent or gained by the company.

This allows Colorado Corporation to know the actual amount of cash it has for operations.

An Income statement on the other hand, shows the transactions that a business gets involved in regardless of whether they involve actual cash or not. This means that it cannot show the actual amount of cash that a business has.

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Amani is the newly hired manager at MyCoffee, a global coffee roasting company. As part of her responsibilities, Amani often gives interviews to media outlets and speeches to community organizations. Amani is playing the role of a

Answers

Amani is playing the role of a spokesperson as she often gives interviews to media outlets and speeches to community organizations.

Who is a firm's spokesperson?

This refers to an official that is for transmitting information about their organization and its goals to the people outside it.

Hence, in this case, she is playing the role of a spokesperson as she often gives interviews to media outlets and speeches to community organizations.

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In 2021, depending on the amounts of income and other tax information, some individuals may report their income on: a.Form 1041. b.Form 1120. c.Form 1040A. d.Form 1065. e.None of these choices are correct.

Answers

In 2021, depending on the amounts of income and other tax information, some individuals may report their income on Form 1040A.

What is Form 1040A?

Form 1040A is defined as a form that permits a person to claim a limited number of tax credits after calculated the amount of taxes, such as the child tax credit, child and dependent care expenses, the credit for the elderly or disabled, and education tax credits.

Some individuals may be required to file Form 1040A in 2021, based on their income and other tax information.

Therefore, option c is correct.

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the united states is considered to have a high standard of living because:

A. the most important sector's of its economy are agricultural

B. most of its citizens have access to necessities like food.

C. a large number of its citizens struggle to find good jobs.

D. its currency is no longer tied to precious metals like gold.​

Answers

Answer:

B. most of its citizens have access to necessities like food.

The number of families receiving snap benefits grew most between . by 2012, about million families were receiving snap benefits.

Answers

The number of families receiving snap benefits grew most between 46 by 2012, about million families were receiving snap benefits.

What is snap benefit?

Snap benefit which full meaning is Supplemental Nutrition Assistance Program can be defined as a federal government program that help to provides food for low income earners or people that cannot afford it.

By the end of 2012, about 46 million families were beneficiary of the  SNAP program.

Therefore the number of families receiving snap benefits grew most between 46  million.

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Answer:

2008 to 2010

46 million families

Explanation:

Just did it :)

can some one write message

Answers

Answer:

Message

Please give Brainliest

Message

Why do you want me to write this?

What are concerns of risk of Sovereignty? Include some examples. ​

Answers

The potential that a nation's government will default on its sovereign debt by failing to meet its interest or principal payments.
Ex. The government going in debt
(Bob is part on the government enforcement he invests in a company, the country decides to nationalize the business making the investment worthless, unless there is reasonable compensation made to the investors.)

Each component of a spreadsheet is identified in a specific way. which spreadsheet component is identified using letters of the alphabet? in a spreadsheet application, a is identified using letters of the alphabet.

Answers

The spreadsheet component that is identified using letters of the alphabet is a Column.

What is a spreadsheet?

spreadsheet serves as a working environment of the software known as Excel which can be used for various tasks.

Therefore, the spreadsheet contain Columns which is put vertically that helps in creating works on the Excel.

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Shonda wants to open a deli. She is worried that it won't be successful unless
it has a familiar brand name, so she pays for the rights to use the name and
logo of an existing deli company. What type of business is Shonda forming?
O A. A franchise
O B. A cooperative
O C. A partnership
O D. A corporation

Answers

If he pays for the rights to use the name and logo of an existing deli company. The type of business is Shonda forming is: A. A franchise.

What is franchise?

Franchise can be defined as the way a person or a company is given the license or right to use a another company trade name or logo.

Based on the given scenario Shonda forming a franchise type of business because he was given  the rights to use the name and logo of an existing deli company.

Therefore the type of business is Shonda forming is: A. A franchise.

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