subject
Business, 18.12.2019 03:31 familygrahambusiness

Wendell’s donut shoppe is investigating the purchase of a new $52,000 donut-making machine. the new machine would permit the company to reduce the amount of part-time needed, at a cost savings of $6,900 per year. in addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,800 dozen more donuts each year. the company realizes a contribution margin of $2.50 per dozen donuts sold. the new machine would have a six-year useful life. required: 1. what would be the total annual cash inflows associated with the new machine for capital budgeting purposes? 2. what discount factor should be used to compute the new machine’s internal rate of return? (round your answers to 3 decimal places.)3. what is the new machine’s internal rate of return? (round your final answer to nearest whole percentage.)4. in addition to the data given previously, assume that the machine will have a $16,835 salvage value at the end of six years. under these conditions, what is the internal rate of return? (round your final answer to nearest whole percentage.)

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 19:30
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment.b. structural and frictional unemployment.c. cyclical and structural unemployment.d. frictional, structural, and cyclical unemployment.
Answers: 2
question
Business, 22.06.2019 21:10
Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is:
Answers: 3
question
Business, 23.06.2019 00:10
Mno corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on the following data: total estimated direct labor-hours 50,000 total estimated fixed manufacturing overhead cost $ 285,000 estimated variable manufacturing overhead per direct labor-hour $ 3.80 recently, job p123 was completed with the following characteristics: total actual direct labor-hours 20 direct materials $ 710 direct labor cost $ 500 the amount of overhead applied to job p123 is closest to:
Answers: 2
question
Business, 23.06.2019 01:30
True or false: it is generally better to concentrate your exercise time on the weekends only for maximum aerobic benefit.
Answers: 1
You know the right answer?
Wendell’s donut shoppe is investigating the purchase of a new $52,000 donut-making machine. the new...
Questions
question
Business, 15.01.2021 20:00
question
History, 15.01.2021 20:00
question
Mathematics, 15.01.2021 20:00
question
Mathematics, 15.01.2021 20:00
question
Mathematics, 15.01.2021 20:00
Questions on the website: 13722362