Assume the following information for a capital budgeting proposal with a five-year time horizon: Initial investment: Cost of equipment (zero salvage value) $ 570,000 Annual revenues and costs: Sales revenues $ 300,000 Variable expenses $ 130,000 $ 50,000 Depreciation expense Fixed out-of-pocket costs $ 40,000 Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. If the company's discount rate is 12%, then the net present value for this investment is closest to: Multiple Choice $281,600. $(181,600). $(281,600). $(101,350).

Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…

Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs $3,210,000 2,568,000 642,000 504,000 $ 138,000 Pretax income If the company raises its selling price to $320 per unit. 1. Compute Hudson Co's contribution margin per unit. 2. Compute Hudson Co's contribution margin ratio. 3. Compute Hudson Co's break-even point in units. 4. Compute Hudson Co's break-even point in sales dollars. 1. Contribution margin per unit 2. Contribution margin ratio ... Next

A highway construction company is under contract to build a new roadway through a scenic area and two rural towns in Colorado. The road is expected to cost $15,000,000, with annual upkeep estimated at $150,000 per year. Additional income from tourists (Benefits) of $1,400,000 per year is estimated. The road is expected to have a useful commercial life of 25 years. The discount rate to evaluate this project is 4% per year. Hìnt: Disbenefits = $0 and Annual Upkeep is equivalent to Annual M&O The correct formula to calculate the Modified B/C is: O Modified B/C (benefits - disbenefits )/ costs %3D Modified B/C = (benefits - disbenefits + M&O) / initial investment %3D Modified B/C = (benefits - disbenefits- M&O) / (initial investment + M&O) %3D Modified B/C = (benefits – disbenefits- M&O) / initial investment