For the quarter (quarter totals only), prepare
the:
5. Cost of goods manufactured budget
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ACCT 556 Week 4 Homework Problems
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Week 4 Capital Budgeting Practice
problem:
You have the following data about a proposed
project:
Cost of new equipment
$80,000
Increase need for Working Capital (to be released at end of
project)
$20,000
Length of project
6
years
Salvage Value of equipment at end of project
$8,000
Annual cash savings if equipment is purchased (cash inflows)
$28,500
Tax rate
35%
Discount rate required of all investements
14%
Required: