City Hospital is considering replacing its old X-ray machine…

City Hospital is considering replacing its old X-ray machine with a new X-ray machine. The new machine would produce X-rays faster and at a lower cost per X-ray. The new machine would also use less electricity and would use a color printer to produce higher quality X-ray images. Instead of investing funds in the new X-ray machine for its radiology department, the hospital could buy a new DNA analyzer for its medical laboratory. Which of the following statements regarding the decision to replace the old X-ray machine with a new X-ray machine is not true?

Discovery Company sell backyard swing sets. Discovery’s budg…

Discovery Company sell backyard swing sets. Discovery’s budgeted sales for the current year were 3,600 units at a selling price of $225 per unit. Actual sales for the current year were 3,300 units at a selling price of $215 per unit. Budgeted variable costs were $166 per unit, and budgeted total fixed costs were $122,000. Actual total variable costs were $518,100 and actual total fixed costs were $126,000. What is Discovery’s flexible budget spending variance for total costs?

Beluga Corporation is considering a capital investment with…

Beluga Corporation is considering a capital investment with a 3-year time horizon. In addition to the upfront cost and salvage value of the new equipment, the project has additional working capital needs. Beluga uses a hurdle rate of 20% to make capital budgeting decisions and performed the following net present value analysis of the project: What is the profitability index of this project? (Round to two decimal points.)