Salaries of IT employees working exclusively on the project: R670 000 Employee awareness leaflets: R32 000 General overhead cost allocation: R123 000 Specialist consultancy service: R432 000 State what value for each of the above four expenditures will be included in the capitalised cost of the ERP system. Write down only the amounts.
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Salaries of IT employees working exclusively on the project:
R670 000
Employee awareness leaflets: R32 000
General overhead cost allocation: R123 000
Specialist consultancy service: R432 000
State what value for each of the above four expenditures will be
included in the capitalised cost of the ERP system. Write down
only the amounts.
Step by step
Solved in 2 steps
- PW(benefits) PW(operating and maintenance costs) PW(capital cost) Project A £17 000 000 5 000 000 6 000 000 Project B £17 000 000 11 000 000 1 000 000 (a) Compute the benefit-cost ratios for both projects. (b) Compute the modified benefit-cost ratios for both projects. (c) Compute the benefit-cost ratio for the increment between the projects. (d) Compute the present worths of the two projects. (e) Which is the preferred project? Explain.Q2C) Use Incremental benefit cost analysis method to compare between the following three projects. Use i=9%/yr.: Project Project A Project C Project D Item Annual Benefits to $10,000 $6,000 $8,000 pablic Annual Disbenefits $2000 $3,000 $1,500 to public Capital Investment $20,000 $15,000 $14,000 Annual Operational $1,000 $1,800 $2.000 Cost Useful Life 10 years 12 years 15 yearsConsidering the reciprocal services method, what are the equations that represent the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department? (0.30×M) 3nd M-S50000 (0.50 x J) 3=5350.000 + (0.30 × M) and MES5O00+(0,50 xJ) J-(S350.000 × 0.30)+M and M-(S50.000 x050) - J (550.000x0.502)
- The total research and development costs of P200,000 incurred to develop the new product is a/an choices postponable cost relevant cost sunk cost avoidable costCompute for the benefit ratio of the following projects. Project cost Gross income Operating cost Life of project Interest rate O a. 1.20 O b. 1.70 O c. 1.07 O d. 1.02 5,000,000 2,000,000 1,000,000 20 years 10%A project has an estimated cost of $200,000 with an estimated revenue of $400,000. What is the BCR?
- In order to carry a new investment project, company A has to purchase a machine for OMR 400,000. Company A staff have enough capacity to carry out the production, no one new will need to be hired, they are currently paid OMR 20,000. Calculate the relevant cost? a. OMR 20,000 Ob. OMR 380,000 O c. OMR 400,000 d. OMR 420,000An interior design studio is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow Cash Flow (0) -$64,000 31,000 31,000 31,000 a-1 If the required return is 10 percent, what is the profitability index for both projects? (Round your answers to 3 decimal places. (e.g., 32.161)) Project I Project II -$18,000 9,700 9,700 9,700 Profitability Index a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project I O Project II Project I Project II b-1 What is the NPV for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) O Project I Project II NPV b-2lf the company applies the NPV decision rule, which project should it take?Determine the best alternatives for a government project with the following data: PROJECT A B C ANNUAL BENEFIT P250,000.00 P320,000.00 P350,000.00 ANNUAL COSTS P100,000.00 P135,000.00 p180,000.00 B/C RATIO 2.5 2.37 1.94 What is the best Project and its incremental ratio? a. A = 1.2 b. A = 2 c. B = 2.0 d. B = 1.18
- Please no written by hand and no emage The following data are available for two mutually exclusive projects: Project A $16,900,000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) 4,700,000 7,600,000 Complete parts (a) through (e) below. a. Compute the benefit-cost ratios for both projects. Project B $15,100,000 9,300,000 3,000,000 The ratios for projects A and B, respectively, are 1.374 and 1.228 (Type integers or decimals rounded to three decimal places as needed.) b. Compute the modified benefit-cost ratios for both projects. The ratios for projects A and B, respectively, are 1.605 and 1.933 (Type integers or decimals rounded to three decimal places as needed.) c. Compute the benefit-cost ratio for the increment between the projects. Select the correct choice below and, if necessary, fill in the answer box to complete your choice. OA. The ratio is (Type an integer or decimal rounded to three decimal places as needed.) B. The ratio is undefined. d. Compute the…Company A has provided figures for two investment projects, only one of which may be chosen. These are the calculations based on the figures: Payback Period The Accounting Rate of Return / Return on Capital Employed Net Present Value Project A 2 years 4 months 27.08% £63,705 Project B 2 years 7 months 39.47% £74.971 Analyse and provide recommendations as to what project needs to be chosen based on the calculations above.ality is working on following two mutually exclusive proposals for increasing and optimizing the traffic lighting. Find the best option by using the Benefit/Cost ratio analysis given that the MARR 10%. Project-I Project-II Initial cost ($) 900,000 1,700,000 Annual operating cost ($/ per year) 120,000 60.000 Annual benefit ($ / per year) 730,000 650,000 Annual disbenefit ($ / per year) 300,000 195,000 Life (years) 10 25