Please answer the following 10 questions within the Excel file (each question is on a different…


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Please answer the following 10 questions within the Excel file (each question is on a different… 1 answer below » Please answer the following 10 questions within the Excel file (each question is on a different tab/sheet). TMAN 625 Final Exam, Fall 2014 Name Question 1 2 3 4 5 6 7 8 9 10 Late Total Score 0 0 0 0 0 0 0 0 0 0 0 0 Question 1 Score 0 Awesome Gadget, INC is considering making an additional investment of in its production capabilities. It has collected data on the current year’s (year 0) revenue, costs and quantity sold. The price per unit will be decreased 10% annually (year-1 unit price will be 10% less than the Document Preview: View complete question » Please answer the following 10 questions within the Excel file (each question is on a different tab/sheet). TMAN 625 Final Exam, Fall 2014 Name Question 1 2 3 4 5 6 7 8 9 10 Late Total Score 0 0 0 0 0 0 0 0 0 0 0 0 Question 1 Score 0 Awesome Gadget, INC is considering making an additional investment of in its production capabilities. It has collected data on the current year’s (year 0) revenue, costs and quantity sold. The price per unit will be decreased 10% annually (year-1 unit price will be 10% less than the Document Preview: Please answer the following 10 questions within the Excel file (each question is on a different tab/sheet).
TMAN 625 Final Exam, Fall 2014 Name Question 1 2 3 4 5 6 7 8 9 10 Late Total Score 0 0 0 0 0 0 0 0 0 0 0 0 Question 1 Score 0 Awesome Gadget, INC is considering making an additional investment of in its production capabilities. It has collected data on the current year’s (year 0) revenue, costs and quantity sold. The price per unit will be decreased 10% annually (year-1 unit price will be 10% less than the present (year 0) price, etc.) COGS per unit produced is forecast to decrease 5% annually (cost per unit in year-1 will be 5% less than the present unit cost, etc.) Fixed costs will increase due to a new salaried technician in all years. No other change is forecast for S.G.& A. Depreciation and working capital for each year are to be as shown in the data block. Using this data, prepare a three year proposal income statement (only) for years 1-3 using items from the following data block as needed. The income statement must be in the standard accounting sequence and contain appropriate subtotals and totals. Years Unit Price Annual % price decrease Unit COGS Annual % COGS decrease New salaried technician Investment Forecasted sales quantities Working capital Depreciation Income Tax rate Capital Gains tax rate MARR Solution 0 1 2 3 $100,000 $110,000 $120,000 340,000 $775,000 $510,000 540,000 $725,000 $460,000 1,000,000 $675,000 $400,000 $199.00 10.00% $107.50 5.00% $350,000 $750,000 14.00% 10.50% 20.00% Question 2 Score 0 An investment committee has narrowed down their investment decision to three proposals. Further information was collected on these three proposals and the investment amounts, estimated annual cash flows, and estimated salvage values are shown below. Determine which one maximizes the financial worth of the company using the internal rate of return criterion only. Use a MARR of 15% and a three year time horizon The committee only considers… Attachments: Q-Attachment…..docx Q-Attachment-….xls View less » Jul 29 2015 03:45 PM

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