Answers
Answer:
Payback period = 2.5 years
Explanation:
given data
Year 0 1 2 3
cash -$500 $150 $200 $300
to find out
What is the project's payback
solution
Year Cash flows Cumulative Cash flows
0 500 500
1 150 350
2 200 150
3 300 150
so
Payback period = Last period with a negative cumulative cash flow +(Absolute value of cumulative cash flows at that period ÷ Cash flow after that period) .........................1
put here value we get
so
Payback period =
Payback period = 2.5 years
Final answer:
The payback period for the project is approximately 2.75 years.
Explanation:
The payback period is a financial metric used to assess the time it takes for an investment or project to generate enough cash flows to recover the initial investment cost. It's a simple tool for evaluating the risk and return of an investment, with shorter payback periods generally indicating lower risk. The payback period is the amount of time it takes to recover the initial investment in a project.
To calculate the payback period, we sum the cash flows until we reach or surpass the initial investment.
In this case, the initial investment is $500, and the cash flows are: $150, $200, and $300 in years 1, 2, and 3 respectively.
By adding the cash flows together, we find that the project's payback is 2 years and 25% of year 3, which is approximately 2.75 years.
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Related Questions
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 120,000 shares authorized Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,900 shares of common stock at $26 cash per share. b. Sold and issued 2,800 shares of preferred stock at $30 cash per share. c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.Required:Prepare the stockholders’ equity section of the balance sheet at the end of the year.
Winnwbagel corp. currently sells 25,200 motor homes per year at 37,800 each, and 10,080 luxury motor coaches per year at $71,400 each. The company wants to introduce a new portable camper to fill out its product line., it hopes to sell 15,960 of these campers per year at $10,080 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 3,780 units per year, and reduce the sales of its motor coaches by 756 units per year. What is the amount to use as the annual sales figure when evaluating this project? a. $237,293,280.b. $262,271,520. c. $357,739,200.d. $95739200.e. $160,876,800.f. $249,782,400.
Ryan has moved frequently over his life and now lives in Key West, Florida. He works as a bartender and owns a small home. He has spent most of what money he has made and continues to do so. Ryan's brother, Sam, is very different. He finished graduate school and has saved as much as he can over the years. He owns a small business that he operates with his family. He is by no means rich but is certainly middle-class. Who needs long-term care insurance?
From Jan. 1, 1960 to Jan. 1, 1985, the historical average annual rate of return in the hypothetical country of Westeros was 12%. The annual standard deviation of the rate of return is 10%. What is the upper bound of the 95.4% confidence interval for the annual rate of return based on this information?a. 16%. b. 10%. c. 12%. d. 14%. e. 8%.
Answers
Answer:
79,785
Explanation:
The computation of the purchase needed is shown below:
= February material + march material - January material
where,
February material = 11,918 units × 5 board feet = 59,590
March material = 8,277 × 5 board feet × 20% = 8,277
January material = 11,918 units × 5 board feet × 20% = 11,918
Now put these units to the above formula
So, the total units would equal to
= 59,590 + 8,277 + 11,918
= 79,785
Final answer:
Tucker Company needs to purchase approximately 55,949 board feet of wood in February to meet its production needs and desired inventory levels, when rounded to the nearest whole number.
Explanation:
To solve this problem, we need to first calculate the number of board feet of wood required for production in each month, and then consider the ending inventory levels desired by management.
- Let's first calculate the amount of wood required for production each month. For each chair, Tucker requires 5 board feet of wood. Thus, for January, February, and March, they respectively require 10,064*5, 11,918*5 and 8,277*5 board feet, which equals 50,320, 59,590 and 41,385 board feet.
- Next, we need to calculate the ending inventory of raw materials for February. Management wants this to be 20% of the production needs for March, or 0.20*41,385 = 8,277 board feet.
- Now, to find the Raw Material to Purchase in February, you need to add the production needs for February and the desired ending inventory for February, then subtract the beginning inventory for February. The beginning inventory would be the ending inventory of January. As the ending inventory of January equals to 20% of February's needs, we have 0.20*59,590 = 11,918 board feet(same as the units produced in February).
- Thus, the board foot of wood Tucker needs to purchase in February is: 59,590 (needs for February) + 8,277 (ending inventory for February) - 11,918 (beginning inventory for February) = 55,949 board feet.
So in answer to the question, Tucker needs to purchase approximately 55,949 board feet of wood in February (to the nearest whole number).
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10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these
Answers
Answer:
O zero
Explanation:
Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.
Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.
The formula for price elasticity is
Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)
Assume the demand is 10 units
Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)
Elasticity of demand = (0) ÷ (-20)
Elasticity of demand = 0
Answer:
PED = 0
Explanation:
The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,
PED = % Change in Quantity demanded / % Change in Price
or
PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]
Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10
So,
PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]
PED = 0
Thus, the price elasticity of demand is zero.
Answers
Answer:
If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________
$7,873.83
Explanation:
a) Data:
Annual investment = $1,600
Interest rate = 14%
Number of period = 4 years
b) Calculations, using an online finance calculator:
FV (Future Value) $7,873.83
PV (Present Value) $4,661.94
N (Number of Periods) 4.000
I/Y (Interest Rate) 14.000%
PMT (Periodic Payment) $1,600.00
Starting Investment $0.00
Total Principal $6,400.00
Total Interest $1,473.83
c) The investment of $1,600 at the end of every year for fours will grow to $7,873.83 with the principal amount of $6,400 ($1,600 * 4) plus compounded interest of $1,473.83.
Answers
Answer: Indirect Lookup relationship
Explanation:
Indirect lookup relationship is used when there is no Salesforce ID in the external data. So this relationship basically links the external object which is the 'child' to the custom object which is the 'parent'.
As the question states, universal containers has included its orders as an 'external data object' into salesforce. Now it wants to create a link or relationship between accounts and orders objects. This is possible through indirect lookup relationship.
Answers
Answer: b. preparing the financial statements
Explanation: As accounting involves recording, classifying, summarizing, and the interpretation financial information, the accounting process, is considered a series of procedures that are employed in the collection, processing, and communication of financial information. In the accounting process, journal entries are first adjusted (identifying and analyzing business transactions and events) after which they are posted. This represents the first and second steps. Then the adjusted trial balance is prepared, followed lastly by the preparation of financial statements. Therefore, the preparation of financial statements is completed last.
Final answer:
The last step in the accounting process among the options provided is b. preparing the financial statements. The process begins with journalizing, leading through posting, and preparing the adjusted trial balance, before culminating in the financial statement's preparation.
Explanation:
The last step in the accounting process among those provided would be b. preparing the financial statements. The accounting process usually follows these steps: Firstly, transactions are d. journalized (recorded in the journal). Next, these journal entries are a. posted to the ledger. Then, an unadjusted trial balance is prepared to check the equality of debits and credits. The next step is adjusting entries and c. preparing the adjusted trial balance. Finally, the accounting period ends with the preparation of the financial statements, reflecting the company's financial health.
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Answers
Answer: 1. Low
2. False
3. False
Explanation:
1. The owners' goal is to keep players' salaries Low.
As the text says, Oligopolist buyers would try to reduce the price of goods that they buy. In the MLB world, the teams are the buyers and the players are the sellers with the salaries being their price. Team owners will therefore try to keep salaries at a low level so that they make more profit.
2. False
This goal is not difficult to achieve due to budget differences but rather because different payers offer varying contributions to the team's game. Some players push the team forward more and hence are able to demand their fair share. This makes it difficult to cap their salaries.
3. False
They only tried to impose the salary cap so that they could reduce the cost of running the basketball teams and not to prevent teams from cheating. The salaries they were paying were high enough that they felt they weren't making enough profit. So they conspired to impose a salary cap so that they could make more profit.