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ACCT 434 Week 6 Homework

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ACCT 434 Week 6 Homework

 1.Question :Related to Problem 1, compute the operating income for each of the five customers.

 

Question 2.Question :Related to Problem 1, what options should Handy-Man Services consider in light of the customer-profitability results?

 

Question 3.Question :Related to Problem 1, what problems might Handy-Man Services encounter in accurately estimating the operating costs of each customer?

 

Question 4.Question :Related to Problem 2, compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal.  Use a required rate of return of 14%.

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Question 5.Question :Related to Problem 2, rank each proposal 1, 2, and 3 using each method separately.  Which proposal is best?  Why?

 

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