Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $228,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) C1 C2 C3
Year 1 12,000 96,000 180,000
Year 2 108,000 96,000 60,000
Year 3 168,000 96,000 48,000
Totals 288,000 288,000 288,000
Assuming that the company requires a 12% return from its investments, use net present value to determine which projects, if any, should be acquired.
Project C1
Initial Investment
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
Project C2
Initial Investment
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
Project C3
Initial Investment
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
Compute the internal rate of return for project C2.
Internal Rate of return =

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?