Xinhong Alternative A Alternative B Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflows should E ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative A Alternative B Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outflows should ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative A Xinhong Purchase

Xinhong Alternative A Alternative B Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflows should E ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative A Alternative B Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outflows should ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative A Xinhong Purchase

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...

See similar textbooks

Similar questions

1. Which machine should be selected using the Payback period method? Machine AMachine B 2. Which machine should be selected using the Accounting rate of return based on the net investment method? Machine AMachine B 3. Which machine should be selected using the Internal rate of return method? Machine AMachine B
Which of the following statements true? I. All else equal, an increase in storage costs, decreases the value of the forward on an asset All else equal, an increase in convenience yield, decreases the value of the forward on an asset I. A) I. and II. are true B) I. is true and II. is false C) II. is true and I. is false D) I. and II. are false Win Win
How will increases in the following items affect residual income? A. B. Increase in Increase in Sales Equipment Decrease RI Increase RI Decrease RI Decrease RI C. Increase RI D. Increase RI Multiple Choice Option A Option B Option C Option D Decrease RI Increase RI
Question 4 Direct Energy has two options for upgrading a natural gas power station to meet new government standards. Option 1: Direct Energy will make the upgrades themselves. This is expected to cost $10,900 at the end of each month for 13 years. At the end of the operation (in 13 years) Direct Energy expects to sell all equipment needed for the upgrade for $122,000. Option 2: Pay experienced contractors. This will cost $45,000 up front and $10,400 monthly for 11 years. Assume all interest is s25% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: Sale of equipment (Residual) Payments (Cost) P/Y = C/Y= MeeRook Pro
3. If inventory turnover decreases, what will happen to the cash conversion cycle? Assume other variable are held constant. Support your answer with example. How EOQ can reduce Inventory cost?
The present worth of an alternative that provides infinite service is called its: a Net present value b. Perpetual annual cost Discounted total cost Capitalized cost
If total fixed costs decreases while the sale price per unit and the variable costs per unit remainconstant, the:(A) contribution margin increases(B) contribution margin decreases(C) breakeven point increases(D) breakeven point decreases Which of the following would appear on both the budgeted income statement and on theschedule of expected cash disbursements for operating expenses?(A) Depreciation expense(B) Rent expense(C) Sales commission expense(D) Both B and C A business always absorbs its overheads on labour hours. In the 8th period 18,000 hours wereworked, actual overheads were $279,000 and there was$36,000 over-absorption. The overheadabsorption rate per hour was:(A) $15.50(B) $17.50(C) $18.00(D) $13.50
Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
radius kettle (m) 1. (Profit) What is the impact of decreasing/increasing with regarding to heat time? How will you relate it in profit perspective?
3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,
Match each of the statements to the correct stem. 1. In a make or buy decision, a. The selling price is a cash inflow 2. In a special order decision, b. The selling price is cashoutflow 3. In a process further decision, c. The cost of the joint product is not relevant.
Henderson Farms reports the following results for the month of November: Sales (10,000 units) Variable costs Contribution margin Fixed costs Net income $600,000 1. 420,000 180,000 110,000 $70,000 Management is considering the following independent courses of action to increase net income. Increase selling price by 5% with no change in total variable costs. 2. Reduce variable costs to 66% of sales. 3. Reduce fixed costs by $10,000.