Carrie Simmons IRR v. MIRR Valuation Methods Bus 650 Managerial Finance Kristi Rayford February 7‚ 2012 1. Abstract The Internal Rate of Return (IRR) and Modified Internal Rate (MIRR) of Return are imperative to understanding the investment on a project and the expected returns or profitability. Under the valuation method of IRR is to accept the project which has the greater number of required rate of return‚ or otherwise‚ reject the project. However‚ MIRR is better indicator
Premium Net present value Investment Cash flow
VEGECARNIVAL | Business plan | | | * Letter of Transmittal December 9‚ 2012 T.M. Taufique Hossain (TMT) Instructor of BUS 251 BBA Dept. North South University Dear Sir‚ First we would like to thank you for giving us the opportunity to work on this project. Despite certain limitations we tried hard to include feasible information to make our report as realistic
Premium Variable cost Fixed cost Costs
George’s T-Shirts Synopsis: George Lassiter was a project engineer for a major defense contractor. He had an interesting side business of manufacturing and designing T-shirts for rock concerts‚ sporting events‚ and fund-raising events. George sold the shirts to his regular crew of vendors for $100 per dozen‚ and these vendors sold the public for $10 per shirt. He wanted to sell his shirts on a rock concert that was going to be held in two months. He was sure that 20‚000 tickets
Premium Cost Price Costs
selling expenses $10 per unit Fixed selling expenses $100‚000 per year Ans: Incremental Revenue ($275-$200) $75 x 15000= $1125000 Incremental Variable Cost : $25+$15+$10=$50 x 15000 = $ 750000 Incremental Fixed Cost : $ 100000 Total Incremental Cost $750000+$100000=$850000 Incremental Profit
Premium Cost Costs Variable cost
Operations Management 1. DryIce Inc. Is a manufacturer of air conditioners that has seen its demand grow significantly. They anticipate nationwide demand for the year 2001 to be 180‚000 units in the South‚ 120‚000 units in the Midwest‚ 110‚000 units in the East‚ and 100‚000 units in the West. Managers at DryIce are designing the manufacturing network and have selected four potential sites – New York‚ Atlanta‚ Chicago‚ and San Diego. Plants could have a capacity of either 200‚000 or 400‚000 units
Premium Variable cost Fixed cost Total cost
GBI Financial Accounting (FI) Exercise Answer Sheet Name Li Zha Page 2 G/L Account Number Type of Account G/L Account Name 100000 BS Bank Account 300000 BS Payables-Trade Account 600000 P&L Sales Revenue 740300 P&L Rent Expense Page 3 Look at the Bank account (100000) – Explain the 3 “listings” to the account information using examples (e.g. currency) where possible in your explanation. The first one is general account of GBI‚ the second
Premium Income statement Asset Double-entry bookkeeping system
17. Howarth Manufacturing Company purchased a lathe on June 30‚ 2007‚ at a cost of $80‚000. The residual value of the lathe was estimated to be $5‚000 at the end of a five-year life. The lathe was sold on March 31‚ 2011‚ for $17‚000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Prepare the journal entry to record the sale. Assuming the company’s year end is March
Premium Depreciation 1920
overhead = 100000 Total selling overhead = 100000+112500= 212500 b) i) Marginal Costing Revenue (200*10000) 2000000 Opening Inventory(84*2000) 168000 COST OF PRODUCTION Direct Material(60*10000) 600000 Direct Labor(20*20000) 200000 Variable Manufacture OH (4*10000) 40000 1008000 _ Closing Inventory(84*10000) (1680000) 840000 +Variable Selling OH (4*100000) 187500 (1027500) 972500 Less Fixed Cost Fixed manufacturer OH 300000 Fixed Selling OH 150000 Fixed Administration OH 100000 (550000)
Premium Costs Cost accounting Cost
a Stewart invested $100‚000 and became the sole shareholder. Assets + Expense = Liabilities + Incomes Asset named Cash Balance created and Liability Shareholder’s Capital gets created 100000 + 0 = 100000 + 0 b Purchased inventory on account for $200‚000. Assets + Expense = Liabilities + Incomes Asset named Inventory created and Liability Vendor payable gets created 200000 + 0 = 200000 + 0 c Sold inventory for $200
Premium Generally Accepted Accounting Principles Balance sheet Accounts payable
Expectations from people matched product promise. Increase in production and sale. Increase in profits. Objective to gain market shares. No threat of competitors. Sale Unit sold 1996 1989 1987 1983 0 Unit sold 50000 1983 852 100000 1987 20‚269 150000 1989 63736 200000 1996 189061 Sales touched 200‚000 mark in 1999. Repositioning of Maruti Products. New soft edged jelly bean shape introduced in 1997. Maruti 800′s carburetor with fuel injection. 40 million
Premium Automobile Suzuki Marketing