A company is considering two alternatives with the following costs: Material costs Utilities costs Review...

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Accounting

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A company is considering two alternatives with the following costs: Material costs Utilities costs Review costs Direct labor costs Alternative 1 $75,000 $34,700 $28,000 $41,000 Alternativa 2 $75,000 $33,900 $33,900 $41,000 Identify the costs that are relevant and the costs that are not relevant, given the choice of alternati between the alternatives. a. Material cost Utilities cost Review cost Direct labor cost b. Differential cost Not relevant Relevant A potential investment has a cost of $280,000 and a useful life of 4 years. Annual cash sales from the investment are expected to be $177,045 and annual cash operating expenses are expected to be $69,745. The expected salvage value at the end of the investment's life is $75,000. The company uses straight-line depreciation for all assets based on the full cost of the assets. The company has a before-tax discount rate of 18%, an after-tax discount rate of 15%, and a tax rate of 35% Required: 1. Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (le .055 = 5.5%). Enter negative amounts with a minus sign) Calculate the before-tax annual PMT of the investment Calculate the before-tax FV of the investment Calculate the before-tax NPV of the investment Calculate the before-tax IRR of the investment 2. Assume the company wants to consider this investment after-tax (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (...055 5.5%). Enter negative amounts with a minus sign) Calculate the after tax annual PMT of the investment $ Calculate the after-tax FV of the investment Calculate the after-tax NPV of the investment Calculate the after-tax IRR of the investment $ $ 19

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