B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $369,600 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 147,840 units of the equipment's product each year. The expected annual Income related to this equipment follows. $ 231, eee Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (40%) Net income 81, eee 61,600 23,100 165, 70e 65,300 26, 120 39,180 $ If at least an 9% return on this Investment must be earned, compute the net present value of this Investment. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Chart Values are Based on: % Select Chart Amount PV Factor Present Value = Net present value A retailer pays $190,000 rent each year for its two-story building. The space in this building is occupled by five departments as specified here. Department Jewelry Cosmetics Housewares Tools Shoes Square feet occupied 1,575 (first-floor) 2,925 (first-floor) 1,935 (second-floor) 819 (second-floor) 1,755 (second-floor) The company allocates 60% of total rent expense to the first floor and 40% to the second floor, and then allocates rent expense for each floor to the departments occupying that floor on the basis of space occupled. Determine the rent expense to be allocated to each department. Step 1: Allocate total rent expense between the two floors. Amount % of Total Cost Allocated First floor %6 Second floor 96 Totals 96 Step 2: Allocate these portions of total rent expense across the departments occupying each floor. First Floor Sq. Feet % of Total Cost Jewelry Dept. 96 Cosmetics Dept. Totals % Second Floor % of Total Cost Sq. Feet 96 Housewares Dept. Tools Dept. Shoes Dept. 96 % Totals %6 Yokam Company is considering two alternative projects. Project 1 requires an Initial Investment of $540,000 and has a present value of cash flows of $2,350,000.O. Project 2 requires an initial Investment of $4,000,000 and has a present value of cash flows of $6,000,000. 1. Compute the profitability Index for each project 2. Based on the profitability Index, which project should the company prefer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Profitability Index Choose Denominator: Choose Numerator: Profitability Index Profitability index 1 Project 1 Project 2 Required Required 2 > Yokam Company is considering two alternative projects. Project 1 requires an Initial Investment of $540,000 and has a present value of cash flows of $2,350,000.O. Project 2 requires an initial Investment of $4,000,000 and has a present value of cash flows of $6,000,000. 1. Compute the profitability Index for each project. 2. Based on the profitability Index, which project should the company prefer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Based on the profitability index, which project should the company prefer? Based on the profitability index, which project should the company prefer? The following Information is provided for each division. Investment Center Cameras and camcorders Phones and communications Computers and accessories Net Income $5,000,000 1,625, eee 950, eee Average Assets $ 23,300,000 12,5ee, eee 11,600,000 Assume a target Income of 13% of average Invested assets. Required: Compute residual income for each division (Enter losses with a minus slgn.) Target Income Cameras and Camcorders Phones and Communications Computers and Accessories % Targeted return Target income Residual Income Cameras and Camcorders Phones and Communications Computers and Accessories Residual income (loss)