-P9-16 (similar to) MIRR unequal lives. Singing Fish Fine Foods has $1 comma 980 comma 000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $560 comma 000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $480 comma 000 for the next six years. The appropriate discount rate for the deli expansion is 9.7% and the appropriate discount rate for the wine section is 8.8%. What are the MIRRs for the Singing Fish Fine Foods projects? What are the MIRRs when you adjust for unequal lives? Do the MIRR adjusted for unequal lives change the decision based on MIRRs? Hint: Take all cash flows to the same ending period as the longest project. If the appropriate reinvestment rate for the deli expansion is 9.7%, what is the MIRR of the deli expansion? 11.41% (Round to two decimal places.) If the appropriate reinvestment rate for the wine section is 8.8%, what is the MIRR of the wine section? 10.44% (Round to two decimal places.) Based on the MIRR, Singing Fish Fine Foods should pick the deli project. (Select from the drop-down menu.) What is the MIRR adjusted for unequal lives of the deli expansion? 10.04% (Round to two decimal places.)

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Based on what you learned about time management which of these statements are true