Bully Inc. is analyzing a special investment project. The pr…
Bully Inc. is analyzing a special investment project. The project will require the purchase of two machines for $30,000 and $8,000. The total residual value at the end of the project is $1,500. The project will generate cash inflows of $11,000 per year over its 5-year life. If Bully requires a 6% return, what is the net present value of this project?Selected information from the PV tables:PV of $1 n=5, i=6: .747PV of an Annuity n=5, i=6: 4.212
Read DetailsStarkvegas Inc. manufactures helicopters. It has just comple…
Starkvegas Inc. manufactures helicopters. It has just completed manufacturing the first newly designed helicopter, R2-D2. Manufacturing data follows: Direct Material Cost $124,000 per unit Direct Labor for First Unit 7,200 hours Learning Curve 85% cumulative average time* Direct manufacturing labor cost $25 per direct labor hour Variable manufacturing overhead cost $11 per direct labor hour *for an 85% learning curve, b = -0.234465What is the total variable cost to produce 7 helicopters?
Read DetailsContemporary Trends is an interior decorating firm located i…
Contemporary Trends is an interior decorating firm located in Starkville. Information related to Job # 155 to redecorate a client’s office is as follows: Direct Material Used $ 4,100 Direct Labor hours spent on job 100 Direct Labor cost per hour $ 30 Overhead is applied to the job based on direct labor hours. At the beginning of the year, the firm estimated overhead for the year of $396,000 and estimated total direct labor hours of 22,000. The total cost of overhead is:
Read Details