Answer:
5.32 years
Explanation:
Particulars Amount
Sales $16,700
Less: Expenses <u>$7,300</u>
Profit before tax $9,400
Less: income tax <u>$3,760</u>
Net income $5,640
Add: Depreciation <u>$4,700</u>
Annual Cash flow <u>$10,340</u>
So, the payback period for the new machine = Total investment/Annual cash flow = $55,000 / $10,340 = 5.319148936170213 = 5.32 years
The answer to this is C. To list the immediate goals of the business.
Answer:
The correct option is D
Explanation:
When using credit you have to pay interest when paying back the loan which is a measure disadvantage as the interest will be compounding overtime, so thats when the advantage of cash comes in