Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 12, Problem 12.67ACT
1.
To determine
The qualitative factors behind MNC’s opening manufacturing facilities in U.S.
2.
To determine
The challenges faced by manufacturing companies in the U.S.
3.
To determine
The impact on stakeholders.
4.
To determine
The ethical issues in not producing at the lowest cost location.
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Answer the following question with complete solutions and cash flow diagram.
An engineer launches a project in the country's top technohub. This involves rental of a computer unit for online class students. He
felt that because of the density of students in the area, 90% of his 30-units will be occupied per sem (5 months each) per year. He
desires a rate of return of 20%. Other pertinent data are the following:
Office investment
Computer investment per unit
Cost of computers after 10 yrs
|Office rental per month
Computer rental per unit per month
Annual maintenance budget per unit
Business tax
P 1,000,000
P 35,000
P 5,000
P 9,000
P 2,000
P 5,000
1% of Total Investment
Insurance
0.5% of Total Investment
Assess the project using (1) ROR, (2) Present Worth Method, and (3) Future Worth Method. (4) Estimate the payback period of
this project.
Answer the following question with complete solution and cash flow diagram.
An engineer launches a project in the country's top techohub. This involves rental of a computer unit for
online class students. He felt that because of the density of students in the area, 90% of his 30-units will
be occupied per sem (5 months each) per year. He desires a rate of return of 20%. Other pertinent data
are the following:
Office investment
Computer investment per unit
Cost of computers after 10 yrs
Office rental per month
Computer rental per unit per month
Annual maintenance budget per unit
Business tax
P 1,000,000
P 35,000
P 5,000
P 9,000
P 2,000
P 5,000
1% of Total Investment
Insurance
0.5% of Total Investment
Assess the project using (A) ROR, (B) Present Worth Method, and (C) Future Worth Method. (D) Estimate
the payback period of this project.
A university's college of engineering would like to determine how much it will cost to keep its computing equipment current. In today's
dollars, the college estimates that it will cost $100,000 to replace old computing equipment. Due to decreasing prices on computers, it
estimates that this cost will decrease each of the following years by 2%. What would the present worth of computing updates for years
1-5 be, assuming a required 10% real return on its investments?
Click here to access the TVM Factor Table calculator.
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Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ± $10.
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Chapter 12 Solutions
Managerial Accounting (5th Edition)
Ch. 12 - Prob. 1QCCh. 12 - (Learning Objective 2) After identifying potential...Ch. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Prob. 5QCCh. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - Prob. 8QCCh. 12 - Prob. 9QCCh. 12 - (Learning Objective 5) Which of the following...
Ch. 12 - Order the capital budgeting process (Learning...Ch. 12 - Prob. 12.2SECh. 12 - Prob. 12.3SECh. 12 - Prob. 12.4SECh. 12 - Prob. 12.5SECh. 12 - Prob. 12.6SECh. 12 - Prob. 12.7SECh. 12 - Prob. 12.8SECh. 12 - Prob. 12.9SECh. 12 - Prob. 12.10SECh. 12 - Prob. 12.11SECh. 12 - Prob. 12.12SECh. 12 - Prob. 12.13SECh. 12 - Prob. 12.14SECh. 12 - Prob. 12.15SECh. 12 - Identify ethical standards violated (Learning...Ch. 12 - Prob. 12.17AECh. 12 - Compute payback period and analyze changes...Ch. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Calculate the payback and NPV for a sustainable...Ch. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27AECh. 12 - Prob. 12.28AECh. 12 - Prob. 12.29AECh. 12 - Prob. 12.30AECh. 12 - Prob. 12.31AECh. 12 - Prob. 12.32AECh. 12 - Prob. 12.33AECh. 12 - Prob. 12.34AECh. 12 - Prob. 12.35AECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38BECh. 12 - Prob. 12.39BECh. 12 - Prob. 12.40BECh. 12 - Prob. 12.41BECh. 12 - Prob. 12.42BECh. 12 - Prob. 12.43BECh. 12 - Prob. 12.44BECh. 12 - Prob. 12.45BECh. 12 - Prob. 12.46BECh. 12 - Prob. 12.47BECh. 12 - Prob. 12.48BECh. 12 - Prob. 12.49BECh. 12 - Prob. 12.50BECh. 12 - Prob. 12.51BECh. 12 - Prob. 12.52BECh. 12 - Prob. 12.53BECh. 12 - Prob. 12.54BECh. 12 - Prob. 12.55APCh. 12 - Prob. 12.56APCh. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - Prob. 12.59BPCh. 12 - Prob. 12.60BPCh. 12 - Evaluate an investment using all four methods...Ch. 12 - Prob. 12.62BPCh. 12 - Prob. 12.63SCCh. 12 - Discussion Questions 1. Describe the capital...Ch. 12 - Prob. 12.65ACTCh. 12 - Prob. 12.66ACTCh. 12 - Prob. 12.67ACT
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