1. Superior Piping Company recently received a contract to install 500,000 feet of new piping in Premier’s Nashville manufacturing facility. Its original labor cost budget for this one-year contract was $3,500,000. Due to its workload when it sold the contract, it planned to use its current employees, who average $50,000 compensation per year. However, in the meantime it has secured some other contracts on which it needs to put some of its current workers. Now, Superior plans to produce 25% of the needed work with workers from outside the company. Although it will have to pay the new workers the same rate as its current workers, it anticipates that the new workers will be 15% less productive than the ones it already employs. If you assume all workers begin on the first day of the project, what should be Superior’s new labor budget for this project? Please solve with excel.    Group of answer choices a. $3,700,000 b. $3,600,000 c. $3,650,000 d. $3,550,000

CH Kilo Inc. is evaluating a proposal to supply warehouse space to a potential customer as well as maintain all the required warehouse records. Kilo has a storage barn not currently in use; however, it will require the installation of additional shelving and a special concrete pad for delivery truck access Kilo's existing accountant will assume the additional accounting duties and receive an additional $8,000 per annum. The potential customer will pay a fee to Kilo based on the volume of product stored. Required: Which of the following items is not a relevant consideration in deciding whether Kilo should provide the warehouse space to the potential customer? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer, Any boxes left with a question mark will be automatically graded as incorrect.) Original purchase price of the storegeben…

Precision Dyes wants to supply 100,000 bottles of a specialized industrial color to its customer per year, who wants to pay $250 per bottle. The contract will last for 4 years. It will cost Precision $6 million to install the necessary equipment to start production. The equipment can be depreciated using the 5-year MACRS method (20%, 32%, 19.20%, 11.52%, 11.52%, 5.76%). Precision estimates that in four years, this equipment can be salvaged for $200,000. The fixed production costs will be $4 million per year, and the variable production costs should be $150 per bottle. Precision also needs an initial investment in net working capital of $600,000, all of which will be recovered when the project ends. The tax rate is 22 percent and Precision requires a return of 12 percent. Should Precision go forward with this deal? Why? Explain

ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will require the purchase of a $843,200.00 work cell. Further, it will cost the firm $51,700.00 to get the work cell delivered and installed. The work cell will be straight-line depreciated to zero with a 20-year useful life. The project will require new employees to be trained at a cost of $59,100.00. The project will also use a piece of equipment the firm already owns. The equipment has been fully depreciated, but has a market value of $5,200.00. Finally, the firm will invest $10,800.00 in net working capital to ensure the project has sufficient resources to be successful. The project will generate annual sales of $917,000.00 with expenses estimated at 38.00% of sales. Net working capital will be held constant throughout the project. The tax rate is 40.00%. The work cell is estimated to have a market value of $489,000.00 at the end of the fourth year. The firm expects to reclaim 85.00% of the…