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In: AccountingAssessment 9:Making the Right Decision WorksheetProblems 1–4Input valuesComplete problems 1–4 based on...Assessment 9:Making the Right Decision WorksheetProblems 1–4Input valuesComplete problems 1–4 based onthe following scenario.Megacorp needs to decide whichof two new projects to invest in.Company nameMegacorp· Project A is an investment in new machinery thatwill cost $750,000Tax rate30%and has a four-year life with no salvagevalue.Discount rate6%· Project B is an investment in new machinery thatwill cost $750,000Project AProject Band has a three-year life with no salvagevalue.Investment$ 750,000$ 750,000Using straight-linedepreciation, Megacorp predicts that the two projectsLife of machinery (in years) 4 3will yield the followingannual results, with cash flows occurring evenlyfourthreethroughout the year.Salvage value$0$0Predicted Annual ResultsPredicted Annual ResultsProject A ($)Project B ($)Project A ($)Project B ($)Sales 700,000 560,000Sales 700,000 560,000Expenses:Direct materials 98,000 70,000Expenses:Direct materials 98,000 70,000Direct labor140,000 84,000Direct labor 140,000 84,000Overhead including depreciation252,000 252,000Overhead including depreciation 252,000 252,000Selling and administrative expenses 50,000 50,000Selling and administrative expenses 50,000 50,000Total expenses 540,000 456,000Total expenses 540,000 456,000Pretax income 160,000 104,000Pretax income 160,000 104,000Income taxes (30%) 48,000 31,200Income taxes (30%) 48,000 31,200Net income 112,000 72,800Net income 112,000 72,800Complete the problems below.Add answers in this template and show your work.Present value of $1 at 6% annuity for 4 years 3.4651Present value of $1 at 6% annuity for 3 years 2.6730Problem 1Compute the annual expected net cash flows for eachproject.Problem 2Determine the payback period for each project.Problem 3Compute the accounting rate of return for eachproject.Problem 4Determine the net present value using 6% as thediscount rate