Management is considering the following three investment pro…

Management is considering the following three investment projects:    Project X Project Y Project Z Investment required $ 37,000 $ 55,000 $ 82,000 Present value of cash inflows $ 38,480 $ 62,150 $ 90,200 Rank the projects according to the profitability index, from most profitable to least profitable.

A company has a minimum required rate of return of 10%. The…

A company has a minimum required rate of return of 10%. The company is considering investing in a factory machine, which costs $100,000 and has an expected life of 5 years. The machine has a zero salvage value and will be depreciated using the straight-line depreciation method. The company expects to generate an extra $24,000 of annual cash flows each of the next 5 years because of this new factory machine. How much extra net income will the company earn each of the 5 years?Show the numbers you use to calculate your answer.

An expansion at a small company would increase sales revenue…

An expansion at a small company would increase sales revenues by $150,000 per year and cash operating expenses by $47,000 per year. The initial investment would be for equipment that would cost $328,000 and have an 8 year life with no salvage value. The annual depreciation on the equipment would be $41,000. The simple rate of return on the investment is closest to (Ignore income taxes.):

An automated turning machine is the current constraint at a…

An automated turning machine is the current constraint at a small regional company. Three products use this constrained resource. Data concerning those products appear below:                                                                                                                                    SQ                 JQ               RQSelling price per unit                        $ 165.88      $ 313.11      $ 494.52Variable cost per unit                          118.30          239.61        381.42Minutes on the constraint                       2.6                4.9             7.8Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized based on the contribution margin per constrained resource.

A company makes collections on sales according to the follow…

A company makes collections on sales according to the following schedule:40% in month of sale56% in month following sale4% in second month following saleAll sales are made on account and the following sales have been budgeted: SalesSeptember$150,000October$170,000November$160,000Budgeted cash collections in November would be:

A company manufactures five different products. All five of…

A company manufactures five different products. All five of these products must pass through a stamping machine in its fabrication department. This machine is the constrained resource. The company would make the most profit if it produces the product that

A company has a cash balance of $17,700 on November 1. The c…

A company has a cash balance of $17,700 on November 1. The company must maintain a minimum cash balance of $14,500. During November, expected cash receipts are $65,000. Cash disbursements during the month are expected to total $77,500. Ignoring interest payments, during November the company will need to borrow: