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A project to control flooding from rare, but sometimes heavy, rainfalls in the arid southwest will have the following cash flow estimates. Determine which project should be selected on the basis of a B/C analysis using an interest rate of 8% per year and a 20-year study period.
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- A new machine with a purchase price of $90,021, with transportation costs of $9,593, installation costs of $6,472, and special acquisition fees of $2,612, would have a cost basis of a. $108,698 b. $96,493 Oc. $90,021 d. $99,105Degneciaton Methuds machine CosT 43000 EST Lite 8yeurs, t2000 Salvage Cpurchaed ilil) Prepare Dipreatoy Schedule for Stranght-Lyni (slk) Double-Beclining Balance Cose) O DIsposal of Degueoalle Assets Using the machin qiver on proslem#1 above- provide, ming we Junk it on a) and p entab An the folowany' ue Strayht-line deprecintion Q0ump tems b Sell it on 1/7 Dfor t is00o ) for $ 60o0 Taade it in on i1/8-LIST wew machine #50,000. DTua de wi All avnce (TIA) #9500. >Taade an Allowence CTIÁ)+ 3,000.DIRECT MATERIALS P225,000; CONVERSION COST P225,000 DIRECT MATERIALS P200,000; CONVERSION COST P200,000 DIRECT MATERIALS P275,000; CONVERSION COST P215,000 DIRECT MATERIALS P225,000; CONVERSION COST P200,000 None of the above
- What is the most appropriate Analysis Period for the four different alternatives shown below? Item First Cost Uniform Annual Benefit Salvage Value Useful Life in Years Machine 1 $1,244,565 $273,804 $124,456 12 Machine 2 $2,297,397 $413,531 $229,740 20 d. 60 years e. 12 years Machine 3 $8,585,814 $1,416,659 $858,581 60 Machine 4 $3,737,193 $672,695 $373,719 30 Incremental Analysis (AIRR) b. 12 years for Machine 1; 20 years for Machine 2; 60 years for Machine 3; and 30 years for Machine 4 c. The average of the useful lives of the different alternatives, in this case, 30.5 yearsShanette Company incurred research and development costs in the current year as follows: Equipment acquired for use in various research and development projects Depreciation on the above equipment Materials used 975,000 135,000 200,000 500,000 150,000 250,000 Compensation costs of personnel Outside consulting fees Indirect costs appropriately allocated What is the research and development expense for the current year? A. 850,000 В. 1,085,000 С. 1,235,000 D. 1,825,000Calculate EBITDA I calculated $6,750,000 but I also calculated 6,507,692 - which one is correct? Operating costs (excl. depreciations & amortization): $4.5mDepreciation and amortization: $1.5mInterest: $0.7mNet Income: $2.8mTax Rate: 35%
- The components of the cost of a major item of equipment are given below. GHS Purchaseprice 780,000 Import duties 117,000VAT (refundable) 78,000 Site preparation 30,000 Installation costs 28,000 Pre-production 18,000 Initial operating losses before the asset reaches planned performance…The components of the cost of a major item of equipment are given below.GHSPurchase price 780,000Import duties 117,000VAT (refundable) 78,000Site preparation 30,000Installation costs 28,000Pre-production costs 18,000Initial operating losses before the asset reaches planned performance 50,000Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions,Contingent Liabilities and Contingent Assets 100,0001,201,000In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset?E 12-9 Research and Development Cost In 2019, Lalli Corporation incurred R&D costs as follow: Materials used from inventory 100,000 Personnel in R&D lab 100,000 Allocation of the cost of utilities and maintenance costs of the R&D facility 50,000 These costs relate to a product that will be marked in 2020. The company estimates tht these costs will be recouped by December 31, 2020. Required: 1. What is the amount of R&D cost expensed in 2019? 2. Would your answer change if the materials were purchased and not used or if the utilities and maintence costs were related to the corporate offices?
- Question 10 Problem 3- Equipment Replacement (Reemplazo de equipo) Corvallis Company is considering purchasing new equipment. The m nuevo equipo. El gerente ha recopilado la siguiente información: Current Machinery - Maquinaria Actual Original cost-Costo original Accumulated depreciation - Depreciación acumulada Annual operating costs - Costos operacionales anuales Current market value - Valor actual en el Mercado Salvage value at the end of five years - Valor residual al final de 5 años New Machinery: - Maquinaria Nueva $25,000 20,000 5,500 750 0 600.000E10-4 Distinguishing capital expenditures from expenses [5 min] Classify each of the following expenditures as a capital expenditure or an expense related to machinery: a purchase price b ordinary recurring repairs to keep the machinery in good working order c lubrication before the machinery is placed in service d periodic lubrication after the machinery is placed in service e major overhaul to extend useful life by three years f customs duty paid on the purchase price g transport and insurance while machinery is in transit from seller to buyer h installation i training of personnel for initial operation of the machinery j income tax paid on profit earned from the sale of products manufactured by the machinery.S. The cost of platinum to be purchased to mpport August production is: A S198,000 B. $200,160 C. S195,840 D. S391,680 E None of the answers are corect