Johnson Enterprises uses a computer to handle its sales invoices
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions
Doug's Custom Construction Company is considering three new products, each requiring an equipment investment of $22,000
Vilas Company is considering a capital investment of $90,000 in additional productive facilities. The new machinery is expected to have a useful life of 5 years with no salvage value. Depreciation is by the straight-line method. During the life of the investment, annual net income and net annual cash flows are expected to be $12,000 and $50,000, respectively. Vilas has a 12% cost of capital rate, which is the required rate of return on the investment.
Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows.
Leung Corporation is considering investing in two different projects. It could invest in both, neither, or just one of the projects. The forecasts for the projects are as follows