Tiffin Girls School Using Return on Investment to Evaluate Proposals Questions


I demand patronage delay this Accounting investigation so I can lowerstand rectify.

Brief Exercise 26.2 (Static) Using Restore on Boarding to Evaluate Proposals (LO26-3)

Bramblett Recording Studio is beobject two boarding proposals (1 and 2). Grounds for the two proposals are bestowed near.

1

2

Cost of boarding

$

80,000

$

86,000

Estimated salvage appraise

16,000

24,000

Average estimated net pay

17,280

13,750


Calculate the restore on mediocre boarding for twain proposals.

ROI

Proposal 1

%

Proposal 2

%

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Hawkins Poultry Farms is beobject the dissipation of sustentation equipment that consumes $139,000 and succeed development annual currency glides of closely $36,000 for five years. The equipment is expected to be sold at the end of five years for $40,000.

What is the net bestow appraise of the purposeed boarding? Hawkins requires a 15 percent restore on all excellent boardings using the bestow appraise tables inExhibits 26-3 and 26-4.

Net bestow appraise

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Pete Nunn is reserved to glide whether to go onwards delay an boarding opening that consumes $60,000. The expected incremental currency inflows are $32,000, while the expected incremental currency outflows are $17,000.

What is the payback bound?

Payback bound

years

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Burns Industries generally moldings and hawks 14,000 government saws per month, although it has the competency to development 29,000 aces per month. At the 14,000-unit-per-month roll of formation, the per-ace consume is $52, consisting of $33 in inconstant consumes and $19 in agricultural consumes. Burns hawks its saws to hawk stores for $74 each. Allen Distributors has offered to dissipation 4,400 saws per month at a base consume. Burns can molding these joined aces delay no shift in its bestow roll of agricultural manufacturing consumes.

Using an incremental segregation admission, Burns should meditate accepting this particular appoint barely if the consume per ace offered by Allen is at least:

Multiple Choice

  • $74.
  • $52.
  • $19.
  • $33.

Aircraft Products, a moldingr of aircraft landing quality, makes 2,700 aces each year of a particular valve used in assembling one of its consequences. The ace consume of unresisting this valve includes inconstant consumes of $63 and agricultural consumes of $55. The valves could be dissipationd from an delayout supplier at $70 each. If the valve were dissipationd from the delayout supplier, 40% of the whole agricultural consumes incurred in unresisting this valve could be eliminated. Buying the valves from the delayout supplier instead of making them would object the guild's permitted pay to:

Multiple Choice

BT&T Corporation moldings telephones. Recently, the guild developmentd a frame of 570 wanting telephones at a consume of $8,700. BT&T can hawk these telephones as bit for $10 each. It can to-boot rework the solid frame at a consume of $6,200, forthcoming which the telephones could be sold for $21 per ace.

If BT&T reworks the wanting telephones, by how ample succeed its permitted pay shift?

Multiple Choice

Seidman Guild moldings and hawks 23,000 aces of consequence X per month. Each ace of consequence X hawks for $15 and has a aid latitude of $6. If consequence X is discontinued, $20,000 in agricultural monthly over consumes would be eliminated and tnear would be no property on the sales dimensions of Seidman Company's other consequences. If consequence X is discontinued, Seidman Company's monthly pay precedently taxes should:

Multiple Choice

Express, Incorporated, is beobject replacing equipment. The forthcoming grounds are available:

Old Equipment

Replacement Equipment

Original consume

$ 55,000

$ 44,500

Disposal appraise now

$ 8,500

$ 0

Disposal appraise in 5 years

$ 0

$ 0

Annual currency permitted consumes

$ 9,500

$ 8,500

What are the whole applicable consumes of custody the old equipment?

Multiple Choice

In preparing a commission pay announcement that shows aid latitude and commission latitude, generally two concepts are confused in allocating consumes to the sundry courages. These concepts are:

Multiple Choice

In the inadequate run, the highest acception in advantageability succeed development from increasing sales in those advantage courages delay the:

Multiple Choice

John Thomas is the overseer of esthetics exchange-of-place for the Syracuse establish of Carrier Corporation. Thomas should be evaluated as overseer of:

Multiple Choice

Disneyland is one of distinct Nursing essay parks owned by The Walt Disney Company. Assume that Disneyland's address has been consecrated decision-making commission for making momentous excellent boarding decisions. Disneyland should be evaluated as:

Multiple Choice

One of the matchless services granted by San Francisco's Saint Francis Public-house is cleaning and polishing coins (filch shift) for the guests. From the standpoint of public-house address, this "money laundry" should be viewed as:

Multiple Choice

One of the matchless services granted by San Francisco's Saint Francis Public-house is cleaning and polishing coins (filch shift) for the guests. From the standpoint of public-house address, this "money laundry" should be viewed as:

Multiple Choice

Required counsel

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Ross Corporation makes all sales on totality. The June 30th neutralize subterfuge neutralize in its totalitys receivable is $310,000, of which $250,000 pertain to sales that were made during June. Budgeted sales for July are $1,160,000. Ross collects 80% of sales in the month of sale; 10% in the forthcoming month; and the conclusive 10% in the promote month forthcoming the sale.

What is the budgeted neutralize of Ross's totalitys receivable as of July 31?

Multiple Choice

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On October 1 of the general year, Molloy Corporation opportune a currency budget for October, November, and December. All of Molloy's sales are made on totality. The forthcoming counsel was used in preparing estimated currency collections:

August sales (actual)

$ 35,000

September sales (actual)

$ 45,000

October sales (estimated)

$ 24,000

November sales (estimated)

$ 65,000

December sales (estimated)

$ 55,000


Approximately 60% of all sales are serene in the month of the sale, 30% is serene in the forthcoming month, and 10% is serene in the month thereafter.

Budgeted collections from customers in October whole:

Multiple Choice

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The forthcoming counsel is from the manufacturing budget and budgeted financial announcements of Altman Corp.:

Direct esthetics register, 1/1

$ 90,000

Direct esthetics register, 12/31

$ 106,000

Direct esthetics budgeted for use during year

$ 348,000

Accounts payable to suppliers, 1/1

$ 58,000

Accounts payable to suppliers, 12/31

$ 68,000


For the year, budgeted dissipations of straightforward esthetics wholeed to:

Multiple Choice

Required counsel

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The forthcoming counsel is from the manufacturing budget and budgeted financial announcements of Altman Corp.:

Direct esthetics register, 1/1

$ 90,000

Direct esthetics register, 12/31

$ 106,000

Direct esthetics budgeted for use during year

$ 348,000

Accounts payable to suppliers, 1/1

$ 58,000

Accounts payable to suppliers, 12/31

$ 68,000


For the year, budgeted currency payments to suppliers wholeed to:

Multiple Choice

If the type sum of esthetics is 85,400 aces at $0.15 per ace and the explicit sum is 95,900 aces at $0.12 per ace, then the esthetics sum disagreement is:

Multiple Choice

If the type sum of esthetics is 85,200 aces at $0.16 per ace and the explicit sum is 95,700 aces at $0.13 per ace, then the esthetics consume disagreement is:

Multiple Choice

If the type sum of esthetics is 85,500 aces at $0.16 per ace and the explicit sum is 96,000 aces at $0.13 per ace, then the chronicle register to chronicles the consume of esthetics used includes:

Multiple Choice

Required counsel

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Roman Mfg.'s July formation confused explicit straightforward strive consumes of $49,569 for 3,900 straightforward strive hours. The budget for the July roll of formation designated for 4,000 straightforward strive hours at $12.70 per hour, using a type consume plan.

Roman's strive admonish disagreement for July is:

Multiple Choice

Required counsel

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Roman Mfg.'s July formation confused explicit straightforward strive consumes of $49,569 for 3,900 straightforward strive hours. The budget for the July roll of formation designated for 4,000 straightforward strive hours at $12.70 per hour, using a type consume plan.

Roman's strive teachableness disagreement for July is:

Multiple Choice

Helicopter Quality is planning to open its consequence verse, which requires boarding of $560,000 in particular-purpose machinery. The machinery has a helpful career of seven years and no salvage appraise. The estimated annual developments of assistance the new consequences are as follows:

Revenue

$ 532,000

Expenses (including straight-verse slander)

(504,800)

Increase in net pay

$ 27,200

All enrichment from the new consequences and all outlays (exclude slander) succeed be accepted or paid in currency in the corresponding bound as normal for totalitying purposes.

The payback bound for this purposeed boarding is:

Multiple Choice

Sterling Corporation has ascititious $72,000 that must be repaid in three years. This $72,000 is to be invested in an nine-year purpose delay an estimated annual net currency glide of $12,000. The payback bound for this boarding is:

Multiple Choice

The Terme Corporation is contemplating the dissipation of new equipment, which may hypothetically acception enrichments by 30%. Currently, sales are $690,000 per year and consume of sales are 60% of sales. The equipment is expected to decisive for 6 years delay no residual appraise. The currency outglide expected at the prelude of the year is $425,400.

By how ample would Terme’s annual bloated advantage acception if the boarding is lowertaken?

Multiple Choice

The Terme Corporation is contemplating the dissipation of new equipment, which may hypothetically acception enrichments by 25%. Currently, sales are $730,000 per year and consume of sales are 55% of sales. The equipment is expected to decisive for 5 years delay no residual appraise. The currency outglide expected at the prelude of the year is $356,500.

What is the whole of slander conclusion the guild could outlay year-by-year coxcombical the straight-verse slander arrangement is used?

Multiple Choice

The Terme Corporation is contemplating the dissipation of new equipment, which may hypothetically acception enrichments by 25%. Currently, sales are $820,000 per year and consume of sales are 60% of sales. The equipment is expected to decisive for 6 years delay no residual appraise. The currency outglide expected at the prelude of the year is $433,200.

Ignoring pay taxes, what is the estimated annual net permitted pay acception/decrease?

Multiple Choice