Book & Bible Bookstore Desires to Buy a New Coding

question 48

Essay

Book & Bible Bookstore desires to buy a new coding machine to help control book inventories. The machine sells for $36,586 and requires working capital of $4,000. Its estimated useful life is five years and will have a salvage value of $4,000. Recovery of working capital will be $4,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $10,000.
Required:
a.Compute the net present value at a 14% required rate of return.
b.Compute the internal rate of return.
c.Determine the payback period of the investment.

Understand the elements and effectiveness of communication.

Identify the barriers to effective communication and how to overcome them.

Differentiate between one-way and two-way communication and their uses.

Recognize the role of feedback in communication.

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Definitions:

Direct Labor Cost

Direct labor cost is the total expense that a company incurs for labor directly involved in the manufacturing of a product or delivery of a service.

Reconciliation

The process of ensuring two sets of records or accounts are in agreement, often used in financial accounting to match bank statements with internal records.

Super-Variable Costing

No definition as "Super-variable Costing" is not recognized as an established term in finance or accounting.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.