2016 2017 2018 2019 2020 2021 2022 Investment: Capital Outlay 16,000 2,000 0 0 0 0 0 Net Working Capital (10% Sales) 0 400 600 0 0 0 0 Total Investment 16,000 2,400 600 0 0 0 0 Investment Recovery : Equipment Salvage ($1,080) Net Working Capital (full recovery) (1,000) Earnings before Interest and Taxes (EBIT): Sales Revenue 4,000 10,000 10,000 10,000 10,000 10,000 Cost of Goods Sold (75% Sales) 75% (3,000) (7,500) (7,500) (7,500) (7,500) (7,500) SG&A (5% Sales) 5.0% (200) (500) (500) (500) (500) (500) Operating Savings 2,000 3,500 3,500 3,500 3,500 3,500 Depreciation ($18,000/6) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) Total Costs & Expenses (4,200) (7,500) (7,500) (7,500) (7,500) (7,500) EBIT - Taxes (40%) NOPAT + Depreciation - Investment = Free Cash Flow Present Value of Free Cash Flows Should the company undertake the project? Why or why not?

Boone brothers remodels homes and replaces windows. ace builders constructs new homes. if boone brothers considers expanding into new home construction, it should evaluate the expansion project using which one of the following as the required return for the project?

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a. no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative. b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child. c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative. d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.

Laval produces lamps and home lighting fixtures. its most popular product is a brushed aluminum desk lamp. this lamp is made from components shaped in the fabricating department and assembled in the assembly department. information related to the 22,000 desk lamps produced annually follows. direct materials $280,000direct labor fabricating department (8,000 dlh × $24 per dlh) $192,000assembly department (16,600 dlh × $26 per dlh) $431,600machine hours fabricating department $15,200mhassembly department $20,850mhexpected overhead cost and related data for the two production departments follow. fabricating assemblydirect labor hours 150,000dlh 295,000dlhmachine hours 161,000mh 128,000mhoverhead cost $400,000 430,000required1. determine the plantwide overhead rate for laval using direct labor hours as a base.2. determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.3. compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the assembly department.4. use departmental overhead rates from requirement 3 to determine the total manufacturing cost per unit for the aluminum desk lamps.