Does anyone have the solution to the attached questions?

Does anyone have the solution to the attached questions?

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1.
Seard Clinic uses patient-visits as its measure of activity. The clinic has provided the
following report:
Requirements:
Using a performance report for December including columns for the (a) actual results, (b)
flexible budget, (c) flexible budget variance, (d) master budget, and (e) sales activity
variance; complete the following:
Total Variance
Revenue/Spending
Variance
Activity Variance
Net Operating Income
2.Impossibilities, Inc. is considering the following investment. For financial reporting
purposed the entire initial investment will be depreciation over 5 years by the straight-
line method. For tax purposes, the entire initial investment will be depreciated by
MACRS over 5 years. The investment will last 7 years.
Investment at t=0
4,500,000
5-yr MACRS
Working Capital at t=0
75,000
1
20.00%
Revenue/year
1,575,000
2
32.00%
Expenses/year
525,000
3
19.20%
Salvage value

4
11.52%
Residual value at term
50,000
5
11.52%
Tax rate (ordinary & capital gains)
30%
6
5.76%
Cost of Capital
10.0%
Requirements:
What is the net present value and IRR of the investment? (8%

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