You AnsweredIn 2022, Leo construction will work on a residential project that lasts 4months. The direct costs of the residential project are shown in thefollowing bar chart.Correct Answer$160,000Question 1A321.79011$1$120,00083.870 giB2$90,000CD13$80,000Assuming $5.000 indirect cost per month, and 12.2% markup. If theretainage is 7% throughout the project, finance charge is 1% per month.and payments will be billed at the end of the month and will be receivedone month later. How much is the last payment the contractor isexpected to receive?4

The expenses to be incurred on the project along with the timelines have been produced. The billing…

Answered: wered In 2022, Leo construction will…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EA: Gardner Denver Company is considering the purchase of a new piece of factory equipment that will...

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You have a opportunity to make a investment that has $10.000,000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000 scrap value at end of 4th year. You will pay interest payment at the end of project, that is $400.000. If you make this investment now, you will receive $4.500,000 one year from today, $3.000,000, $5.000,000 and $ 4.000,000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment?
Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.
Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
Use the following for the next 2 questions: A facility is to be built with construction costs of $50 per square foot amortized over 20 years. Receiving and put-away costs are expected to be $0.02 per box and pick-pack-ship costs are expected to be $0.10 per box. The facility will have an annual upkeep and maintenance cost of $5 per square foot. 1. If the company constructs a 100,000 square foot facility, what is the monthly fixed cost? - $102.500 - $62,500 - $92,500 - $112,500 - $82,500 - $52,500 - $72,500 2. If demand in April is 30,000 boxes, what is the variable cost in April? (assume the number of boxes received in April equals the number of boxes shipped in April) - $3,000 - $1,200 - $3,600 - $2,400 - $600 - $4,200
17 Using the figure below, calculate the percentage of revenue to the lender based on the monthly construction draw schedule. The project assumes a discount rate of 10%, and is for a 25-acre tract of land outside Lexington, KY. Construction Sales Revenue Month Draw (Lot Sales) 01234567899 509,600 0 327,600 0 327,600 0 327,600 0 109,200 226,100 109,200 226,100 109,200 226,100 0 455,525 0 455,525 0 455,525 0 455,525 The % of revenue to the lender is O.137.4% 72.8% 131.2% 76.2%
You are given opportunity to purchase product for $42, 000. The product will have annual operating expenses of $4,000, and a salvage value of $20,000 at the end of its useful life of 6 years. Assuming a discount rate of 9.0%, what is the minimum acceptable revenue to justify taking this project? A 1.01% B $333 C $2704 D $767 E $10704
A project is estimated to cost P120T, last 8 years & have a salvage value of P20T. The annual gross income is expected to average P50k & annual expenses is P5T. If capital is earning 10% determine if this is a desirable investment using annual cost method, what is the net cost. : a. 24,255.598 b. P24,756.951 c. 25,245.598 d. P27,535.412
You are equipping an office. The total office equipment will have a first cost of2.0Mand a sal-vage value of$200,000. You expect the equipment will last 10 years. Use a spreadsheet to compute the40%bonus depreciation with MACRS depreciation schedule.
Komfy Karzis evaluating a project (Project A) that costs $325.000 and is expected to generate 5200,000 for the next two years. They are also evaluating a project (Project B) that costs $350,000 and is Expected to generate $200,000 inthe firstyear and $230.000 in the SCEond year Komfy srequiredrate of returnfor both projectsis 18.3% Upload a file with the following calculations a Caleulate the NPV for bofhprojects b) Calculate theIRR for both prejecrs O Caleuiate the paybackperiod fobarhproje d Calculate the discounted naypack berloafor both projects. e) Calculate the gross-over ratel
You have a chance to make an investment that has $10.000.000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000. scrap value at end of 4th year. You will pay interest payment at the end of 4rd year that is $500.000. If you make this investment now, you will receive $4.500.000 one year from today, $3.000.000, $5.000.000 and S 4.000.000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment? Why?? Please write the answer in a handwritten format
ality is working on following two mutually exclusive proposals for increasing and optimizing the traffic lighting. Find the best option by using the Benefit/Cost ratio analysis given that the MARR 10%. Project-I Project-II Initial cost ($) 900,000 1,700,000 Annual operating cost ($/ per year) 120,000 60.000 Annual benefit ($ / per year) 730,000 650,000 Annual disbenefit ($ / per year) 300,000 195,000 Life (years) 10 25
The Road agency is planning to build a new bridge and is considering two distinct configurations. The initial costs and annual costs and benefits for each bridge are shown in table 2. The bridges are each expected to give positive returns within 7 years and the rate of return expected 9%. Which would you choose and why. Table 2 Alternative I Alternative II Initial cost $ 5,000,000.00 $ 10,000,000.00 Annual maintenance and operating costs $ 15,000.00 $ 10,000.00 Annual benefits $ 1,200,000.00 $ 1,900,000.00 Annual benefits less costs $ 1,185,000.00 $ 1,890,000.00

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