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irakobra [83]
3 years ago
11

mint company is considering purchasing a machine with a cost of $10,000 and a useful life of 20 years. mint expects the machine

to produce net annual cash flows of $2,000 each year. what is the cash payback period of the machine?
Business
1 answer:
Pie3 years ago
8 0

The payback period of the machine is 5 years when the cost of acquiring a machine is $10,000 with a net yearly cash flow is $2,000 per year.

<h3>What is a payback period?</h3>

The payback period is the method of identifying the recovery duration of the invested amount on a long-term project. It is expressed in terms of years.

Given values:

Cost of acquiring a machine: $10,000

Yearly cash flows: $2,000

Computation of payback period of the machine:

\rm\ Payback \rm\ period \rm\ on \rm\ machine=\frac{\rm\ Cost \rm\ of \rm\ acquiring \rm\ a \rm\ machine}{\rm\ Yearly \rm\ cash \rm\ flows} \\\rm\ Payback \rm\ period \rm\ on machine=\frac{\$10,000}{\$2,000} \\\rm\ Payback \rm\ period \rm\ on machine=5\rm\ years

Therefore, when an investment is made on a machine of $10,000 with annual cash flows of $2,000, then the payback period comes out to be as 5 years.

Learn more about the payback period in the related link:

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Answer the questions below regarding the heating of a house in the Midwestern United States. Assume the following.
Mandarinka [93]

a. The calculation of the requirements is as follows:

i. The cubic feet of natural gas required to heat the house for one winter is 160,000 (160,000,000/1,000).

ii. The cost of heating the house for one winter is $800 (160,000,000/1,000,000 x $5).

b. To conserve heat energy, lowering the cost of heating the house, the residents could take the following actions:

  • Turn off lights, computers, televisions, video games, and other electrical equipment when not in use.
  • Buy equipment with less energy consumption (that is, energy-saving appliances).
  • Adopt renewable energy sources.

c. i. Two pollutants resulting from burning coal are <u>Sulfur dioxide (SO2) and Nitrogen oxides (NOx)</u>.

ii. One method to reduce the impact of coal energy is carbon capture. Carbon capture separates the CO2 and recovers it for underground permanent storage or sequestration.

<h3>Data and Calculations:</h3>

Square feet of the house's living space = 2,000

Heat per square foot = 80,000 BTU

Total heat required = 160,000,000 BTU (2,000 x 80,000)

Cost of natural gas per thousand cubic feet = $5

Cubit foot of natural gas = 1,000 BTUs of heat energy

Total cost of heating = $800 (160,000,000/1,000,000 x $5)

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7 0
3 years ago
Helena is looking for an advisor who can help guide her as she invests. She also wants to reduce transaction and trading costs.
Trava [24]

The correct answer would be option D. Mr. Jones, who has positive client reviews and charges moderate fees.

Her goal is to achieve a 8% return in one year so that she can buy a house. Mr. Jones, who has positive client reviews and charges moderate fees, would be the most appropriate one for her.

Explanation:

When choosing the best for you, you must make a decision by considering all the factors contributing in the choice of that alternative.

So when Helena wants to hire an adviser who can help her guide her with the investments, she should choose the one who has positive clients' reviews. This would be to first priority for Helena to choose the adviser. Secondly if that adviser charges moderate fee, then this would be a plus point for that alternative.

So Helena must choose Mr. Jones who has both positive reviews as well as charges moderate fees.

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5 0
3 years ago
Compare and contrast the product vs. process layouts. What are the advantages &amp; disadvantages? List examples of products tha
Contact [7]

Answer:

Explained below.

Explanation:

With a product layout, equipment breakdown has serious implications because the separate pieces of equipment are closely tied together. If one piece of equipment fails, the line will quickly come to a halt. Consequently, preventive maintenance to reduce the failure rate is advisable. In contrast, a process layout often contains duplicative equipment so that if one particular piece of equipment fails, the work can usually be shifted to another piece of equipment. Consequently, there is less need for preventive maintenance and less need for repair of equipment when it does break down. Moreover, process layouts utilize more skilled workers who tend to take better care of the equipment than the lower-skilled workers do in a product layout system.

* The main advantages regarding the product layouts include:

a. A potentially huge rate of output.

b. Lowering unit costs.

c. Low training costs and a broad span of supervision due to specialization.

d. The low unit price concerning material administration.

e. High utilization of labor and tools.

f. Routing as well scheduling are being built into the design.

g. Accounting, purchasing, including inventory control are routine.

* The main disadvantages regarding the product layouts include:

a. Specialization can lead to dull, repetitive jobs with little opportunity for personal satisfaction or creativity.

b. Workers may have little interest in maintaining equipment or in the quality of output.

c. The system is not particularly adaptable to changes in process design or changes in the volume of output.

d. The system is highly susceptible to shutdowns caused by equipment failure or excessive absenteeism.

e. Preventive maintenance costs and the capacity for quick repairs are necessary to ensure high utilization.

f. Incentive plans tied to individual output are impractical.

* The main advantages regarding the process layouts are:

a. They can manage a variety of processing requirements.

b. They are less vulnerable to equipment failures than product layouts are.

c. The general-purpose tools used often are less costly than the specialized equipment used in product layouts. It is also usually easier and less costly to manage and repair.

d. Specific stimulation systems are possible.

* The main disadvantages regarding the process layouts are:

a. Work-in-process inventory costs can be high (in manufacturing).

b. Routing and scheduling must be done for each new job.

c. Equipment utilization valuations are habitually low.

d. Material handling is slower, less efficient, and more costly per unit than is the case in a product layout.

* Example of product layout includes self-service cafes, car assembly as well as car valeting.

* Example of process layout are milling, drilling, grinding, hydraulic presses, as well as lathes)

7 0
3 years ago
In developed countries, at what age do individuals typically become grandparents?
yKpoI14uk [10]

In developed countries, at 40 years of age individuals typically become grandparents.

<h3>What are developed countries?</h3>

A sovereign state that is considered to have a developed economy, a high standard of living, and advanced technological infrastructure is referred to as a developed country.

A developed country, often known as an industrialized country, has a sophisticated economy that is typically gauged by average income per person and/or gross domestic product (GDP). Developed nations have diverse industrial and service sectors as well as cutting-edge technology infrastructure.

The term "developed countries" often refers to wealthy nations, excluding Middle Eastern nations and certain other minor nations. Limitations:

(i) It only addresses the economic element while ignoring issues like peace, health, the environment, lifespan, education, etc.

(ii) The method does not show us how the income is distributed.

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8 0
2 years ago
The LFH corporation makes and sells a single product, product t. each unit of product t requires 1.5 direct labor-hours at a rat
satela [25.4K]

Answer:

b. $441,000

Explanation:

Calculation for Budgeted direct labor cost

Using this formula

Budgeted direct labor cost= Budgeted production * hours per unit * rate per hour

Let plug in the formula

Budgeted direct labor cost= 28,000 * 1.5 * 10.50

Budgeted direct labor cost= 441,000

Therefore the Budgeted direct labor costs for June would be 441,000

7 0
3 years ago
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