(a) What is the Present Value (PV) of this investment (at 10%)? (b) What is the NET Present Value (NPV) of this investment Should you buy the equipment if you need 10%? (c) What is the Internal Rate of Return (IRR) of this investment? (d) What is the payback period?

1. James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided

regarding the Forming Department: Forming Department Month Ended June 30 Unit information Beginning work in process, June 1 — 4,000 Started into production during

June — 22,000 Completed and transferred to Finished Department during June — 20,000 Ending work in process, June 30 (20% complete as to direct materials and 50%

complete as to conversion costs) — 6,000 Cost information: Beginning work in process as of June 1 (consists of $1,000 of direct materials costs and $4,500 of

conversion costs) — $5,500 Direct materials used in June — $7,268 Conversion costs incurred in June — $32,990 Required: (a) Calculate the equivalent units for

conversion costs. (Show your work) (b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 30) 2. Harry Corp buys equipment for

$194,000 that will last for 9 years. The equipment will generate cash flows of $36,000 per year and will have no salvage value at the end of its life. Ignore taxes.

Use 10% required rate of return. (a) What is the Present Value (PV) of this investment (at 10%)? (b) What is the NET Present Value (NPV) of this investment Should you

buy the equipment if you need 10%? (c) What is the Internal Rate of Return (IRR) of this investment? (d) What is the payback period?

Is this the question you were looking for? If so, place your order here to get started!