q3 part abc

Vodic Electronics Los a standard part in the manufacture of different types of radio. The total cost of product 33,000 arts is 100,000, which includes tied costs of $40,000 and variabile.com of 500.000 The comany can buy the part from an outdoor for 52 port and avoid 30% of the fixed costs. Assume that the company can use the food manufacturing co to make another product that can apron of $17.000. Voltaic tources, what will be the effect on operating income? OA Oecrease of $12.000 Base of S12.000 O doce of $25.000 OD areas of $25.000 The following details are provided by a manufacturing company: Product line Investment $1,010,000 Useful life 14 years Estimated annual net cash inflows for first year $430,000 Estimated annual net cash inflows for second year $430,000 Estimated annual net cash inflows for next ten years $200,000 Residual value $50,000 Depreciation method Straight-line Required rate of return 12% Calculate the payback period for the investment. (Round your answer to two decimal places.) OA. 2.75 years OB. 5.73 years OC. 6.07 years OD. 2.35 years Mandal, Inc. is evaluating three possible investments in depreciablo plant assets. The company cases the straight-line method of depreciation. The following information is available Investment Investment B Investment Initial capital investment $255.000 $240,000 $350.000 Estimated useful life 8 years 7 years 10 years Estimated residual value 315.000 $20,000 $30 000 Estimated annual net cash flow for each year 550.000 $32,000 389,000 Required rate of return 12% 125 128 Rank the projects as to order of preference based on the best payback period. , , OB. ABC OCBC.A OD CAB