ACCT 556 RANK Great Stories /acct556rank.com ACCT 556 RANK Great Stories /acct556rank.com | Page 5

2. What is the annual after tax cash flow?
3. What is the payback based upon the initial cash outflows?
4. What is the discounted payback based on the initial cash
outflows?
5. What is the simple rate of return based upon the initial cash
outflows?
6. What is the net present value?
7. What is the net present value
8. What is the internal rate of return
9. Would you recommend this project? Why or why not.
================================================
ACCT 556 Week 5 Homework Assignment
FOR MORE CLASSES VISIT
www.acct556rank.com
ACCT 556 Week 5 Problem Cash Budget
Note: It is expected that this problem will be complete using an
Excel spreadsheet using formulas. Please see the Excel Tutorial
that is available under the course home tab.
The Hale Company is currently working on its cash budget for the
coming year. The following information is available:
Projected sales for the coming year:
The collection history of the Hale Company has been as follows:
20% of sales are collected in the month of the sale.
60% of the sales are collected in the month following the sale.
12% of the sales are collected in the 2nd month following the sale.
5% of the sales are collected in the 3rd month following the sale.
The following information regarding costs is available:
The cost of goods sold is 54% of sales
Items for sale are purchased in the month of the sale.