THe info you will need to answer Requirement 3, 4, and 5 is as follows, Initial investment 110,000 Useful life 10 years Salvage value $10,000 Annual net income generated $5,400 Cost of capital for Requirrement 3 is 10% Cost of capital for Requirement 4 6% The problem is in the file attached.

Student Name: Class: ACCT 7080 Nursing Problem 5-04 OVERHILL, INC. Requirement 1: Bikes produced and sold Total costs Variable costs Fixed costs per year Total costs 500 800 1000 $125,000 $125,000 $- $- Try again! Try again! Try again! Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $- $543.75 Try again! $Try again! Requirement 2: Bikes produced and sold Total revenue Variable costs Contribution margin 500 $- $- Try again! Contribution margin ratio 800 $- Try again! #DIV/0! 1000 Try again! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Requirement 3: Bikes produced and sold Total revenue Variable costs Contribution margin Fixed costs Profit 500 $- 800 $- $Try again! 1000 $- $Try again! $Try again! Given Data PA5-04: OVERHILL, INC. Student Name: Class: ACCT 7080 Nursing Problem 06-04 SIMPSON COMPANY Requirement 1: Golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs 600 800 $- $400,000 500,000 $900,000 Try again! Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $$- 1000 $Try again! $1,125.00 $$- Try again! Correct! Try again! 600 800 1000 Requirement 2: Golf carts produced and sold Sales Revenue Less: Variable costs Contribution margin Less: Fixed costs Income from Operations 300,000 $(300,000) $(300,000) 400,000 $(400,000) 500,000 $(900,000) 500,000 $(500,000) $(500,000) Try again! Try again! Try again! Requirement 3: Requirement 4: = Name of Variable #1 Total fixed cost Operator / Name of Variable #2 Unit contribution margin Amount of Variable #1 $0 Break-even units / Amount of Variable #2 (500) Operator * Name of Variable #2 Sales price Result 0 Try again! Break-even sales dollars (approach 1) = Name of Variable #1 Break-even units Amount of Variable #1 Amount of Variable #2 * Result $0 Try again! Break-even sales dollars (approach 2) = Name of Variable #1 Unit contribution margin Operator / Amount of Variable #1 Name of Variable #2 Unit sales price Amount of Variable #2 / Contribution Margin Ratio Result #DIV/0! #DIV/0! Name of Variable #1 Total fixed cost Operator / Name of Variable #2 Contribution margin ratio / Amount of Variable #2 #DIV/0! Amount of Variable #1 Result #DIV/0! #DIV/0! Given Data PA06-04: SIMPSON COMPANY Student Name: Class: ACCT 7080 Nursing Problem 08-04 WING WALKER ACES, INC. Requirement 1: Accounting Rate of Return = Name of Variable #1 Annual Net Income Operator / Amount of Variable #1 Name of Variable #2 Initial Investment Amount of Variable #2 / Result #DIV/0! #DIV/0! Requirement 2: Payback Period = Name of Variable #1 Initial Investment Operator / Amount of Variable #1 Result #DIV/0! years #DIV/0! Requirement 3: Annual Cash Flow PV Factor 10% Present Value $$- 6.1446 0.3855 Try again! Requirement 4: Year 0 1-10 10 NPV Annual Cash Flow PV Factor 6% 7.3601 0.5584 Present Value $$Try again! Requirement 5: Operator + Amount of Variable #2 / Year 0 1-10 10 NPV Name of Variable #2 Net Income + Name of Variable #3 Depreciation Given Data PA08-04: WING WALKER ACES, INC. Student Name: Class: ACCT 7080 Nursing Problem 5-04 OVERHILL, INC. Requirement 1: Bikes produced and sold Total costs Variable costs Fixed costs per year Total costs 500 800 1000 $125,000 $125,000 $- $- Try again! Try again! Try again! Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $- $543.75 Try again! $Try again! Requirement 2: Bikes produced and sold Total revenue Variable costs Contribution margin 500 $- $- Try again! Contribution margin ratio 800 $- Try again! #DIV/0! 1000 Try again! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Requirement 3: Bikes produced and sold Total revenue Variable costs Contribution margin Fixed costs Profit 500 $- 800 $- $Try again! 1000 $- $Try again! $Try again! Given Data PA5-04: OVERHILL, INC. Student Name: Class: ACCT 7080 Nursing Problem 06-04 SIMPSON COMPANY Requirement 1: Golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs 600 800 $- $400,000 500,000 $900,000 Try again! Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $$- 1000 $Try again! $1,125.00 $$- Try again! Correct! Try again! 600 800 1000 Requirement 2: Golf carts produced and sold Sales Revenue Less: Variable costs Contribution margin Less: Fixed costs Income from Operations 300,000 $(300,000) $(300,000) 400,000 $(400,000) 500,000 $(900,000) 500,000 $(500,000) $(500,000) Try again! Try again! Try again! Requirement 3: Requirement 4: = Name of Variable #1 Total fixed cost Operator / Name of Variable #2 Unit contribution margin Amount of Variable #1 $0 Break-even units / Amount of Variable #2 (500) Operator * Name of Variable #2 Sales price Result 0 Try again! Break-even sales dollars (approach 1) = Name of Variable #1 Break-even units Amount of Variable #1 Amount of Variable #2 * Result $0 Try again! Break-even sales dollars (approach 2) = Name of Variable #1 Unit contribution margin Operator / Amount of Variable #1 Name of Variable #2 Unit sales price Amount of Variable #2 / Contribution Margin Ratio Result #DIV/0! #DIV/0! Name of Variable #1 Total fixed cost Operator / Name of Variable #2 Contribution margin ratio / Amount of Variable #2 #DIV/0! Amount of Variable #1 Result #DIV/0! #DIV/0! Given Data PA06-04: SIMPSON COMPANY Student Name: Class: ACCT 7080 Nursing Problem 08-04 WING WALKER ACES, INC. Requirement 1: Operator / Name of Variable #2 Initial Investment / Amount of Variable #2 110,000 Name of Variable #1 Initial Investment Operator / Name of Variable #2 Net Income Operator + Name of Variable #3 Depreciation Amount of Variable #1 $110,000 = Name of Variable #1 Annual Net Income Amount of Variable #1 $5,400 Accounting Rate of Return / Amount of Variable #2 5,400 + 10,000 Result 4.91% Correct! Requirement 2: Payback Period = Result 7.14 years Correct! Requirement 3: Year 0 1-10 10 NPV Annual Cash Flow PV Factor 10% Present Value $$- 6.1446 0.3855 Try again! Requirement 4: Year 0 1-10 10 NPV Annual Cash Flow PV Factor 6% 7.3601 0.5584 Present Value $$Try again! Requirement 5: Given Data PA08-04: WING WALKER ACES, INC. 1) ARR = Annual Net income / Initial investment Given inputs are Annual Net income = 5400 Initial investment = 110000 ( you Can check in next sheet excel these figures are given there) Just put these figures in above formula ARR = 5400 / 110000 ARR = 4.91% 2) Pay Back Period = Initial investment / ( Net income + Depreciation) Given inputs are Annual Net income = 5400 Initial investment = 110000 Depreciation = (110000-10000)/10 = 10,000 Just put these figures in above formula Pay Back Period = 110000 / (5400+10000) Pay Back Period = 110000 / (15400) Pay Back Period = 7.14 Years 3) Net Present Value Discount Rate is 10% Years Cash flows A 0 1-10 10 -110000 15400 10000 Discount Rate B 1.0000 6.1446 0.3855 NPV Where as Cash inflow = 5400+10000 = 15400 10th Year salvage value should be 10,000 return Discount rate taken from table values Present Values A*B -110000.00 94626.84 3855.00 -11518.16 4) Net Present Value Discount Rate is 6% Years Cash flows A 0 1-10 10 -110000 15400 10000 Discount Rate B 1.0000 7.3601 0.5584 NPV Present Values A*B -110000.00 113345.54 5584.00 8929.54 Where as Cash inflow = 5400+10000 = 15400 10th Year salvage value should be 10,000 return Discount rate taken from table values 5) Conclusion: The Project Need to be Accept if discount Rate is 6% because its NPV is Positive and Pay Back Period also more. As per the above Calculation This Project Need to Accept if discount Rate is 10% need to Reject 1) ARR = Annual Net income / Initial investment Given inputs are Annual Net income = 5400 Initial investment = 110000 ( you Can check in next sheet excel these figures are given there) Just put these figures in above formula ARR = 5400 / 110000 ARR = 4.91% 2) Pay Back Period = Initial investment / ( Net income + Depreciation) Given inputs are Annual Net income = 5400 Initial investment = 110000 Depreciation = (110000-10000)/10 = 10,000 Just put these figures in above formula Pay Back Period = 110000 / (5400+10000) Pay Back Period = 110000 / (15400) Pay Back Period = 7.14 Years 3) Net Present Value Discount Rate is 10% Years Cash flows A 0 1-10 10 -110000 15400 10000 Discount Rate B 1.0000 6.1446 0.3855 NPV Where as Cash inflow = 5400+10000 = 15400 10th Year salvage value should be 10,000 return Discount rate taken from table values Present Values A*B -110000.00 94626.84 3855.00 -11518.16 4) Net Present Value Discount Rate is 6% Years Cash flows A 0 1-10 10 -110000 15400 10000 Discount Rate B 1.0000 7.3601 0.5584 NPV Present Values A*B -110000.00 113345.54 5584.00 8929.54 Where as Cash inflow = 5400+10000 = 15400 10th Year salvage value should be 10,000 return Discount rate taken from table values 5) Conclusion: The Project Need to be Accept if discount Rate is 6% because its NPV is Positive and Pay Back Period also more. As per the above Calculation This Project Need to Accept if discount Rate is 10% need to Reject