Bebop, inc. is planning a project that requires purchasing some new, highly-efficient cd-burning equipment for $150,000. the freight will be $12,000, and bebop will spend an additional $4,000 to have the equipment installed. at the end of the equipment’s 10-year life, it will be scrapped at an after-tax cost of $2,000. (in other words, the company must spend $2,000 to haul the equipment to the junkyard.) bebop expects that they will create new cds at a much faster rate than they currently do, so their inventory of blank cds will rise by $28,000. they also expect their accounts payable to rise by $22,000.
a) what is bebop’s total initial investment for this project? when will it occur?
b) what is the annual depreciation expense?
c) what is the terminal cash flow for this project? when will it occur?

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?