Kenner Company is considering two projects. Project A Project B

Initial investment $85,000 $24,000

Annual Cash Flows $20,676 $6,011

Life of the Project 6 years 5 years

Depreciation per year $14,167 $4,800

Present value of an Annuity of $1 in Arrears

Periods 8% 10% 12 % 14 %

1 0.926 0.909 0.893 0.877

2 1.783 1.736 1.690 1.647

3 2.577 .487 2.402 .322

4 3.312 3.170 3.037 .914

5 3.993 3.791 3.605 14.433

6 4.623 14.355 4.111 3.889

7 5.206 14.868 4.564 14.288

8 5.747 5.335 4.968 4.639

9 6.247 5.759 5.328 4.946

10 6.710 6.145 5.650 5.216

Required:

a. Which of the two projects, A or B, is better in terms of internal rate of return?

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.