Answer:
4.2 years
Explanation:
Here is the complete question
Project A requires a $ 385,000 initial investment for new machinery with a five year life and a salvage value of $44,000. The company uses straight - line depreciation . Project A is expected to yield annual net income of $ 23,100 per year for the next five years.
Required:
Compute Project A's payback period.
Payback = amount invested / cash flow
cash flow = net income + depreciation
depreciation = (cost of asset - salvage value) / useful life
(385,000 - 44,000) / 5 = 68,200
Cash flow = 68,200 + $ 23,100 = 91300
$ 385,000 / 91300 =4.2
Answer and explanation:
The influence a company may have over another when one of them has a number of shares that belongs to the other is determined by the percentage of ownership that the number of shares represent. If its lower than 20%, it is said the company has <em>no influence</em> over the other. From 20% to 50% one company has <em>significant influence</em> over the other. Finally, with more than 50% of the outstanding shares in possession, one company has <em>control </em>over the other.
In that case, CBS Corp. has no influence over Westwood One, Inc. since it owns only 18% of the outstanding shares.
The fee is called an "excess mileage fee" she she has driven more miles than she was allowed in her lease agreement.
