FIN370 University of Phoenix Week 2 Ch 9 Accounting Problem Sets Assignment Steps Resources: Tutorial help on Excel® and Word® functions can be found on t

FIN370 University of Phoenix Week 2 Ch 9 Accounting Problem Sets Assignment Steps

Resources: Tutorial help on Excel® and Word® functions can be found on the Microsoft®Office website. There are also additional tutorials via the web that offer support for office products.

Complete the following Questions and Problems from each chapter as indicated.

Show all work and analysis.

Prepare in Microsoft® Excel® or Word.

Ch. 9: Questions 7 & 8 (Questions and Problems section)
Ch. 10: Questions 3 & 13 (Questions and Problems section)
Ch. 11: Questions 1 & 7 (Questions and Problems section)

Format your assignment consistent with APA guidelines if submitting in Microsoft® Word.

I have attached a word document with all the questions Questions and Problem Sets
FIN/370
29 August 2017
Questions and Problems Sets
Week 2
Chapter 9
(7)Calculating IRR [LO5] A firm evaluates all of its projects by applying the IRR rule. If the required return
is 14
percent, should the firm accept the following project?
(8) Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV
decision rule. At a required return of 11 percent, should the firm accept this project? What if the
required return is 24 percent?
Chapter 10
(3) Calculating Projected Net Income [LO1] A proposed new investment has projected sales of
$635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000.
Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net
income?
(13) Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost
of $540,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end
of which the sausage system can be scrapped for $80,000. The sausage system will save the firm
$170,000 per year in pretax operating costs, and the system requires an initial investment in net working
capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of
this project?
Chapter 11
(1) Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses.
The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.
a. What is the variable cost per unit?
b. Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units.
What are the total costs for the year?
c. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is$465,000
per year, what is the accounting break-even point?
(7)Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and
the cash breakeven points.
Ignore any tax
effects in
calculating the
cash break-even.

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