Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this generator in the market today is AED 94,000 (according to GE company who is the producer of this generator). If the discount rate on this generator is 9.5 percent per year. Do you think the firm will make a profit if they sell this generator?  What is the rate that will make the firm breakeven?

Q: Verizon Communications said it plans to spend $22.9 billion to expand its fiber-optic Internet and…

A: F=PF/P i, n P=CustomersAverage IncomeP/A i, n+CustomersAverage IncomeCustomer baseP/G i,…

Q: uick computing currently sells 19 million computer chips each year at a price of $23 per chip. It is…

A: Impact on the Cash flow from manufacture of new chips is calculated as follows: Increase in sales of…

Q: A pulp and paper company is planning to set aside $150,000 now for possibly replacing its large…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: RKE & Associates is considering the purchase of a building it currently leases for $30,000 per year…

A: NAL (Net advantage to Lease) is benefits that an entity might geberate by leasing an equipment…

Q: Use the following information to answer the question below.   Nielson Motors is considering an…

A:

Q: Heiko Company, a manufacturer of moderately priced timepieces, would like to introduce a new…

A: Target cost per watch = Sales price per watch - Desired profit per watch

Q: Suppose that the firm Cherry Blossom has an orchard they are willing to sell today. The net annual…

A: This question is based on the concept of fair value asset pricing which says that the fair market…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Net Present Value (NPV) Net present value is defined as the summation of the present value of cash…

Q: Consider a firm with a contract to sell an asset for $220,000 seven years from now.  The asset costs…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Mosaic is evaluating a manufacturing plant that has the potential to generate revenue of  $2 million…

A: The value of the firm can be determined on the basis of expected cash flows. The expected cash flows…

Q: Young Pharmaceuticals is considering a drug project that costs $2.56 million today and is expected…

A: Computation of discount rate:The company would be indifferent between rejecting or accepting the…

Q: Home Automation is considering an investment of $500,000 in a new product line. The company will…

A: Calculating present value of cash inflows and deducting it from cash outflow gives the present value…

Q: Abbott Mining Systems wants to determine whether it should buy now or buy later for upgrading a…

A: Inflation adjusted present worth calculations can be done by: F(P/F, if, n) Where if = i + f + i*f…

Q: Meggitt Systems, a company that specializes in extreme-high-temperature accelerometers, is…

A: Given:  Present value= $280,000 Interest rate =12%

Q: Optimal corporation wants to expand their manufacturing facilities. They have two choices, first to…

A: a)Determine the best option:The most financially beneficial option is option 1 expansion of current…

Q: Better Corporation can purchase a piece of equipment now for $120,000 or buy it 4 years from now for…

A:

Q: Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $350. It…

A: Part-1.On reducing the prices of product, the sales units have been increassed from 20000 units to…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Initial cash flow = - $8.07 million Annual Cash flow = $5.21 million discount rate = 0.076 (i.e.…

Q: All American Telephones Inc. is considering the production of a new cellphone. The project will…

A: The computation of NPV: Therefore, the NPV is -$114,515. Working note:

Q: Shimada Products Corporation of Japan is anxious to enter the electronic calculator market.…

A: Required return = Investment x rate of return = $5,000,000 x 12% = $600,000 Total sales value = No.…

Q: t cash flows of P5,000 per year for 2 years. Process Y will cost P11,500 and will produce cash flows…

A:

Q: Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the…

A: Determination of Net Present Value helps the business entity in deciding whether to invest in the…

Q: Quick Computing currently sells 17 million computer chips each year at a price of $11 per chip. It…

A: Cash flows are the movement of real or virtual money within the organization due to business…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…

Q: Heiko Company, a manufacturer of moderately priced timepieces, would like to introduce a new…

A: The correct option is option “a”.

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Calculation of Present values when Selling Price of the unit is $10,000 and Firms enter into the…

Q: NUBD Inc. is considering two average-risk alternative ways of producing its patented polo shirts.…

A:

Q: Assuming that 60,000 drums are needed each year, what is the financial advantage (disadvan- tage) of…

A: A make-or-buy decision seems to be a behaviour of employing cost-benefit analysis to make a…

Q: A fashion label is considering inclusive sizing which would expand its offerings to plus size and…

A: The break-even no. of pieces will be that number for which the NPV is nil. NPV is net present value.

Q: worthwhile to invest in the insulation? What is the payback period of the investment?

A: Reduction in fuel = P190000 × 20% = P38000  Less: Annual cost of taxes and insurance = 5% of P120000…

Q: All American Telephones Inc. is considering the productionof a new cell phone. The project will…

A: NPV of introducing now = -13 +(((8 x 50%)+(2 x 50%)) x(1-1.08^-3)/0.08 = -0.114515 Million   NPV of…

Q: A corporation is considering purchasing amachine that will save $150,000 per year beforetaxes. The…

A: Given: Saved amount per year = $150,000 Cost of operating = $30,000 Income tax rate = 40% Return of…

Q: Warren's Hats forecasts that it will sell 25,000 baseball caps next year. The company buys its caps…

A: Given the following information: Budgeted sales: 25,000 baseball caps Variable cost: $3 per cap…

Q: Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the…

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Q: A large electronic retailer is considering the purchase of software that will minimize shipping…

A: In the given situation, Purchase of Software has to be justified for the annual expenditure incurred…

Q: You are considering the purchase of a new high-efficiency machine to replace older machines now. The…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Red-Star Co. wants to sell an electrical generator for AED 165,000 in 2024. The price of this…

A: In order to evaluate whether the selling price by the company is correct or not according to market…

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Calculation of present value of earning (PVOE) using excel when the price of product is $10,000:

Q: NUBD Inc. is considering two average-risk alternative ways of producing its patented polo shirts.…

A: NPV refers to net present value and is it calculated as the present value of all future cash flows…

Q: Mosaic is evaluating a manufacturing plant that has the potential to generate revenue of $2…

A: Given: Particulars Amount in Millions Stock price $2 Up price % 20.00% Lower price % 25.00%…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Given, The cash flows from contract is $4.83 million Upfront costs $8.13 million Discount rate is…

Q: NUBD Inc. is considering two average-risk alternative ways of producing its patented polo shirts.…

A: Project X   Annual Cash flows P5,000.00 Present value of an ordinary annuity of $1 at 10% for 2…

Q: A corporation is trying to decide whether to buy the patent for a productdesigned by another…

A: The computations as follows:

Q: If the Rhine Company ignores the possibility that other firms may enter its market, it should set a…

A: Net present value of future sales revenue at both price levels.

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.