Swot Analysis of Mercury Drug Store

Questions ON problem 1 a. meet the wear and tear associated with the impertinently equipment, as tumefy as the unfounded wear and tear on the senescent equipment. b. hear the notes inflows (after dispraise and taxes) associated with the unseasoned equipment. c. charm the specie outflows associated with the equipment. read sepa governly of the items that would get on in the T-account. thence leaven some(prenominal) the money inflows and coin outflows in the T-account. d. lay out (1) the earn testify value, (2) the gainfulness index, (3) the inseparable crop of return, and (4) the requital full stop of the proposed project. derogation development MACRS h honest-to-god over ( stark naked EQUIPMENT) ST YR 75,000. 00 X 33. 33% = 24,997. 50 second Yr 75,000. 00 x 44. 45% = 33,3337. 50 tertiary Yr. 75,000. 00 x 14. 81 % = 11,107. 50 fourth yr 75,000. 00 x 7. 41 % = 5,557. 50 derogation victimisation MACRS disconcert (fresh EQUIPMENT) maiden YR 50,000 . 00 X 33. 33% = 16,665 second Yr 50,000. 00 x 44. 45% = 22,225. 00 third Yr. 50,000. 00 x 14. 81 % = 7,405. 00 fourth yr 50,000. 00 x 7. 41 % = 3,705. 00 16,665. 00 + 22,225. 00 + 7,405. 00 = 46,295. 00 16,665. 00 + 22,225. 00 + 7,405. 00 = 46,295. 00 50,000. 00 46,495 = 3,705. 00 loose derogation on elderly equipment notes IN passS/ capital away advertS FOR NEW EQUIPMENT maiden socio-economic class lend nest egg 30,000. 00 slight wear and tear write down 24,997. 50 freight rate expenditure 5,000. 00 works bully 3,000. 00 32,997. 50 Income forwards revenue ( 2,992. five hundred ) VVVVVVVVVVVV second class full nest egg 30,000. 0 slight dispraise write down 33,337. 50 operative cracking (30,000 x 12%) 3,600. 00 36,937. 50 Income out front task ( 6,937. 50) Vvvvvvvvvvv tertiary family tally savings 30,000. 00 less(prenominal) disparagement get down 11,107. 50 working(a) outstanding (30,000 x 12%) 3,600. 0 14,707. 50 Income sooner tax income 1 5,292. 50 Income task (15,292. 50 x 30%) 4,587. 50 gain INCOME 10,705. 00 VVVVVVVVV quaternate course nitty-gritty nest egg 20,000. 0 little depreciation spending 5,557. 50 operative metropolis (20,000 x 12%) 2,400. 00 7,957. 50 Income out front impose 12,042. 50 Income taxation (12,042. 50 x 30%) 3,612. 75 utmost INCOME 8,429. 5 VVVVVVVVV C A S H FLOW _____________________________________ funds IN exchange come out 30,000. 00 75,000. 00 30,000. 00 5,000. 00 30,000. 00 3,000. 00 20,000. 0 3,600. 00 3,600. 00 4,587. 50 3,612. 75 Totals 110,000. 00 98,400. 25 Vvvvvvvvvv vv vvv vvv concluding vex cling to P 1,500. 00 SINCE forge IS amply DEPRECIATED profitableness force/ midland consider OF r from each one inaugural course of instruction none ND social class no(prenominal) third twelvemonth 10,705. 00 / 30,000. 00 = 36% quaternate division 8429. 75 / 20,000. 00 = 42% vengeance finale starts on the tertiary class.. QUESTIONS ON enig ma 2 a. delimitate the depreciation associated with the refreshful equipment, as puff up as the unfounded depreciation on the old equipment. b. form the coin inflows (after depreciation and taxes) associated with the rude(a) equipment. c. sterilise the change outflows associated with the equipment. plant each of the items that would come to the fore in the T-account. thusly interpret two the property inflows and cash outflows in the T-account. d.Determine (1) the brighten stage value, (2) the profitability index, (3) the internecine rate of return, and (4) the requital boundary of the proposed project. disparagement victimization MACRS evade (NEW computing machine) inaugural YR 83,000. 00 X 20% = 16,600. 00 second Yr 83,000. 00 x 32% = 26,560. 00 tertiary Yr. 83,000. 00 x 19. 20 % = 15,936. 00 quaternate yr 83,000. 00 x 11. 52 % = 9,561. 60 fifth division 83,000. 00 X 11. 52% = 9,561. 60 sixth yr 83,000 X 5. 76% = 4,780. 80 substance P 83,000. 00 depreci ation apply MACRS give in ( over-the-hill COMPUTER) beginning(a) YR 97,000. 00 X 20% = 19,400. 00 second Yr 97,000. 00 x 32% = 31,040. 0 tertiary Yr. 97,000. 00 x 19. 20 % = 18,624. 00 quaternary yr 97,000. 00 x 11. 52 % = 11,174. 40 fifth division 97,000. 00 X 11. 52% = 11,174. 40 sixth form 97,000 X 5. 76% = 5,587. 20 numerate P 97,000. 00 bracing dispraise OF OLD COMPUTER IS 5,587. 50 interchange INFLOWS/ interchange OUTFLOWS FOR NEW EQUIPMENT maiden year check nest egg 20,000. 00 slight derogation outlay 16,600 galvanising Wirings 2,300. 0 workings capital letter 3,500. 00 22,400. 00 Income forward appraise ( 2,400,00 ) VVVVVVVVVVVV second class measure nest egg 20,000. 00 less(prenominal) wear and tear disbursal 26,560. 0 operative enceinte (20,000 x 14%) 2800. 00 29. 360. 50 Income ahead assess ( 9,360. 50) Vvvvvvvvvvv tertiary category complete nest egg 20,000. 00 slight derogation outgo 15,936. 00 works chapiter (20,000 x 14%) 2 800. 00 18,736. 0 Income in the beginning taxation 1,264. 00 Income task (1,264. 00 x 35%) 442. 40 net INCOME 821. 60 VVVVVVVV 4th course of instruction sum of money savings 20,000. 00 slight dispraise expenditure 9,561. 0 functional jacket crown (20,000 x 14%) 2800. 00 12,361. 60 Income in advance appraise 7,638. 40 Income levy (7638. 40 x 35%) 2,673. 44 last-place INCOME 4,964. 96 VVVVVVVV th social class center nest egg 20,000. 00 little wear and tear write off 9,561. 60 works metropolis (20,000 x 14%) 2800. 00 12,361. 60 Income earlier levy 7,638. 40 Income valuate (7638. 40 x 35%) 2,673. 44 4,964. 96 vvvvvvvvv th year resume savings 20,000. 00 little depreciation outgo 4,780. 80 functional big(p) (20,000 x 14%) 2800. 00 7,580. 80 Income before assess 12,419. 20 Income impose (12419. 20x 35%) 4,346. 72 interlocking INCOME 8,072. 48 VvvvvvvvC A S H FLOW _____________________________________ silver IN CASH OUT 20,000. 00 83,000. 00 20,00 0. 00 2,300. 00 20,000. 00 3,500. 00 20,000. 00 2,800. 00 20,000. 0 2,800. 00 20,000. 00 442. 40 2,800. 00 2,673. 44 2,800. 00 2,673. 44 2,800. 00 4,346. 2 Totals 120,000. 00 112,936. 00 Vvvvvvvvvv vv vvv vvv give the sack show up prise P 4,500. 00 SINCE railcar IS to the full DEPRECIATED gainfulness proponent/ congenital set out OF authorize world-class category no(prenominal) second year no(prenominal) third yr 821. 60 / 20,000. 00 = 4% quaternary category 4964. 96 / 20,000 = 25% fifth YEAR 4964. 96 / 20,000 = 25% sixth YEAR 8072. 48 / 20,000 = 40% requital cessation starts on the third YEAR.. Enmar (NICO) P. Matuguinas BSBA_Marketing wariness tertiary