No. 1Please solve, and give the complete solution, and correct answer. 1. A children's clothing manufacturing company has always found payroll processing tobe costly because it must be done manually by a clerk. Recently, an industrialengineer designed a system that automates payroll processing. Management isenthusiastic about this system because it uses some personal computer systemsthat were purchased recently. It is expected that the new automated system willsave P40,000 per year in labor. The new automated system will cost P30,000 tobuild and test prior to operation. It is also expected that operating costs, includingincome taxes, will be about P15,000 per year. The system will have 5 years usefullife. The expected net salvage value is estimated to be P3,000.a) Identify the cash inflows and cash outflows over the life of the project.b) Determine the net cash flow and the accumulated cash flow.To assist you in the cash flow, a table is presented below where you are asked tocomplete the entries. Some cells are provided with answers which will serve as yourguide.YearCash InflowCash OutflowNet Cash FlowCumulative Cash Flow-P30,000 + P3,00025,00025,000-P27,000-2,00023,000123P15,000473,000P40,000c) Determine the conventional payback period using the given formula.Initial InvestmentNet Cash Flow per YearConventional Payback Period =

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a) Identify the cash inflows and cash outflows over the life of the project. b) Determine the net cash flow and the accumulated cash flow. To assist you in the cash flow, a table is presented below where you are asked to complete the entries. Some cells are provided with answers which will serve as your guide. Year Cash Inflow Cash Outflow Net Cash Flovw -P30,000 + P3,000 25,000 25,000 Cumulative Cash Flow -P27,000 -2,000 23,000 1 2 3 P15,000 4 73,000 5 P40,000 c) Determine the conventional payback period using the given formula. Initial Investment Net Cash Flow per Year Conventional Payback Period -

a) Identify the cash inflows and cash outflows over the life of the project. b) Determine the net cash flow and the accumulated cash flow. To assist you in the cash flow, a table is presented below where you are asked to complete the entries. Some cells are provided with answers which will serve as your guide. Year Cash Inflow Cash Outflow Net Cash Flovw -P30,000 + P3,000 25,000 25,000 Cumulative Cash Flow -P27,000 -2,000 23,000 1 2 3 P15,000 4 73,000 5 P40,000 c) Determine the conventional payback period using the given formula. Initial Investment Net Cash Flow per Year Conventional Payback Period -

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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only answer d now please
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Hh1.
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H3. Create a word problem with a topic Matheson Formula and Double Decllining Balance Show your solution and provide illustrations/diagrams